Many auto lenders have minimum employment requirements. Depending on where your credit score falls on the spectrum, your employment history could be a defining factor in a car loan approval.
New on the Job
A bad credit auto lender is likely to require that you’ve been at your current job for around six months to one year. If this is your first job, they may require you to be at that job for one year before you’re considered for financing.
However, there are some exceptions to this rule. Say you’re a nurse and you recently started working at a different hospital. While it’s technically a new job because you’re working under a different employer, it’s still the same field of work.
Lenders understand that people can switch jobs from time to time for a variety of reasons, whether it’s due to life changes or moving to a new area. Situations like this can be looked at on a case-by-case basis, and a bad credit car lender may consider scenarios like this.
If you just got a brand-new job, or a job in a different field, it’s generally recommended that you simply give yourself some more time before you apply for financing. You can certainly try, since all lenders vary in their specific requirements, but your approval odds increase the longer you’ve held the same job – no matter what your credit score is.
Work History and Bad Credit
Some direct lenders may be more flexible on work history requirements, but bad credit auto lenders may only consider you for financing if you’ve been at the same job for at least a year. Lenders vary in their specific stipulations, but, generally, they prefer that you’ve been at your current job for a while.
However, with a lower credit score, it’s likely that a lender is going to look into your work history with a fine-toothed comb.
If you have a lower credit score, you’re probably going to have better luck financing with a subprime lender. These lenders assist borrowers who have credit challenges such as a past repo, bankruptcy, no credit, or bad credit.
Subprime lenders look for stability when you apply for a car loan. This means they look at factors outside your poor credit, like how long you’ve lived in the same area and your overall work history. Many subprime lenders evaluate your work history going back three years, and require that you haven’t had gaps for more than 30 days in between jobs.
Bad Credit Auto Loans
When you apply for financing, be sure to be up front about your work history and your situation. Your credit reports are likely to contain information about your past work history, too. An auto lender may even call your current employer to verify your employment status. And if you have bad credit, it’s a good idea to start with a lender that can help with your credit.
To find a subprime lender, begin by looking for a special finance dealership that's signed up with subprime lenders. These dealers aren’t everywhere, and they aren’t always the easiest to pick out from the crowd. Auto Credit Express wants to help you look for one that’s near you.
We’ve been around for over 20 years, and we match borrowers to dealerships with the lending resources they need. To begin your search, complete our free car loan request form. We’ll look for a dealer in your local area, with no cost and no obligation. Get started now!