If you need to finance a car and have imperfect credit, your employment history matters to subprime lenders. For this reason, we are often asked questions related to time on the job. Take this one we received last month:
"Is it possible to get a loan with less than 6 months employment history?"
The answer to this person's question is "yes." In certain cases, it's possible to get approved for a bad credit car loan with less than six months of employment history. But others may not be so lucky.
These questions come up because subprime lenders carefully evaluate many factors beyond the standard requirements for a car loan. In addition to your credit, they will consider your income, debt level, residence, current and past employment, and more.
Why is that? Basically, it boils down to this: subprime lending happens on a case by case basis. Each person who applies for a car loan will be carefully evaluated and approved or denied based on their own unique circumstances. Employment history is a complex subject where many details will be taken into account.
Employment History Requirements and Guidelines
Your employment history and time on the job matter to subprime lenders. The way they see it, the longer you've been at a job, the more stable your employment (and, therefore, your income) situation is. Here are the basic guidelines and requirements you can expect them to have:
- Three or four months of continuous employment at your current job.
- An employment history that spans at least three years and doesn't include any long gaps (typically no more than 60 days) between jobs.
Keep in mind that these are simply the typical requirements we expect subprime lenders to have. They are not hard and fast rules, and different lenders will have their own standards.
So, don't get discouraged if your employment situation doesn't perfectly match these guidelines. Again, subprime lending happens on an individual basis. Lenders are willing to consider special circumstances, especially when it comes to employment and all of the complexities surrounding it.
For example, they understand that people change jobs or start new ones for a variety of reasons. It could be that a recent college graduate is just entering the real world, or a person could have left their old job for a better opportunity or higher pay elsewhere.
This is why being able to show a steady employment history across multiple years is going to matter to subprime lenders. While you may be new to your current job, your past work experience can give them more assurance.
If the length of your employment or gaps in your employment history are going to be an issue, there are others ways you can help your chances of getting approved. For example, you could try using a cosigner or saving up a large down payment.
The Bottom Line
When it comes to employment, being at your current job for at least three or four months and having no long gaps in your employment history can help your bad credit auto loan chances.
If you are dealing with less than perfect credit and need a car loan, you should also know that Auto Credit Express is here to help. We connect consumers to local dealerships who are signed up with subprime lenders. They are able to provide financing for people dealing with credit issues.
Let us take the hassle out of finding the people that can help. Get started right now by filling out our car loan request form online.