It seems like everybody has a side hustle these days, or maybe several. Side hustles are a great source of extra income, but if you need a car loan, you need to have a regular full-time job too, otherwise, you may not qualify.

Auto Loans and Employment

Most lenders that work with borrowers with problem credit require you to have a minimum income of around $1,500 to $2,500 dollars from a single source of income. Subprime lenders usually prefer W2 employment, which you must prove through computer-generated check stubs showing year-to-date income.

If you rely on side hustles or odd jobs to pay the bills, you're likely to only be able to use your most steady source of income to qualify for a car loan. Even if you just work multiple part-time jobs, you're going to run into this issue.

However, as long as you can come up with the minimum qualifying amount from one job, your additional jobs can help show you can comfortably repay your loan.

Side Hustles and DTIs

Your debt to income ratio, or DTI, tells a lender how much of your pre-tax income is being used by your current bills, such as loans and credit cards. This is where a side hustle can really come in handy. After you qualify for an auto loan, your lender needs to judge how much of an auto loan to approve you for. In order to do this, they need to ensure you won't go broke just by paying for a car.

So, to ensure you have enough available income, they calculate how much of your income is already being used. The trick here is that even though only steady income is acceptable for loan qualification, all your income is combined to get your gross monthly income for a DTI calculation.

Additional Income and Down Payments

Another good way to put a side hustle to work for you is to turn that extra cash into a down payment. If you're a bad credit borrower, you're likely required to have a down payment requirement of at least $1,000 or 10% of a vehicle's selling price.

Down payment amount varies by lender and situation, but you should know that putting down the most you can is one of the easiest ways to save money on your auto loan.

Ready to Put Your Extra Job to Work?

If you're ready to step into your next auto loan, we want to help. At Auto Credit Express we know what it's like to have poor credit stand in your way, but we also know it doesn't stop you from getting a car loan. We can help you find the right dealership for the job that's signed up with lenders to work with unique credit situations.

Simply fill out our fast, free auto loan request form and we'll get to work matching you to a local dealer.