Earlier in June, the U.S. Labor Department reported that the national unemployment rate in May was 5.5 percent. While that is a lower number, there is another number that is more important: the U-6 number. This is the number of workers who are "marginally attached" to the U.S. workforce. In May, that number was 10.8 percent, nearly double the amount of those who are currently unemployed.
Marginally attached workers are those who are either not seeking work, intentionally working part time, or those who are stuck in part time jobs while looking for full time work. When potential car buyers find themselves in situations where they have to work two jobs or only have one part time job with a limited income, it makes the process of getting a car very difficult.
Car Loans and Your Income Source
When you are looking to finance a car when your credit is damaged, your income becomes much more crucial to the car buying process. And if you have multiple jobs, there are certain rules that lenders must abide by.
In this case, the income from one of your jobs must meet the lender's income requirements on its own. As long as one of your jobs has qualifying income, you may still be able to get approval for an auto loan. Of course, other factors may come into play, such as the length of time spent at the job that provides these earnings.
Also, you should know that this doesn't mean that your secondary income is useless. Depending on the situation it can still be factored in when lenders calculate your debt to income ratio.
Improve Your Chances of Loan Approval
Some things you can do to increase your likelihood of approval or reduce your costs: a down payment, a vehicle (with equity) to trade in and even someone who has good credit to cosign on the loan.
At Auto Credit Express, we connect car buyers with lenders who work with unique financial situations. We have helped millions nationwide, and we can do the same for you. Get started today by completing our fast and simple online application.