If you're struggling to qualify for a car loan because too much of your income is going toward other bills, it could be time to consider getting a side hustle to free up some cash. In today's thriving online world finding the right part-time gig is easier than ever – once you find yours you could be on your way to lowering your debt to income ratio and a much-needed auto loan.

Making More Money With Time at Home

As many Americans lost their sources of income over the past year, more and more people have been turning to part-time work to get by. For many, this means finding a side hustle or working several jobs in the ever-growing gig economy.

If making more money sounds good to you, there are several fast, easy ways to get in on the game. Whether you're looking to work local or remote, you may have more luck finding the right part-time gig with the help of an employment app. There are several to choose from, and we even have some trusted partners you can work with.

Taking on a part-time job could also help you save for the down payment requirement of a subprime auto lender, too. If your monthly expenses make it tough to save anything substantial, finding a side gig could help you get there.

Debt to Income Ratio and Cash Flow

Without income, or with too much of it going out the door, it can be hard to get the essentials like a car loan or a mortgage.

Improve Your Debt to Income Ratio With a Part-Time JobThis is especially true for people with lower credit scores because subprime lenders typically require you to have a certain amount of income free each month to pay for auto loan expenses. This is called your debt to income (DTI) ratio, and it's an important part of the bad credit car loan equation.

DTI compares your pre-tax monthly income to how much you're already spending on payments, including an estimated auto loan and full coverage car insurance. Bad credit lenders prefer that you have more money available than not, and cap acceptable DTI ratios at 45% or 50%. What this means is if more than half of your income is already being spent month to month, you're not likely to qualify for a loan.

This is where a part-time job can come into play. If you make enough to qualify for the car loan but have too many payment obligations, adding secondary income lowers your DTI and could give you the wiggle room you need to be approved.

There are some initial auto financing rules you need to follow, though.

Qualifying Income for Bad Credit Car Loans

When you have less than perfect credit there are lenders that look at outside influences, such as your income, employment, residence stability, and past payment history, to name a few. These factors allow a bad credit lender to get a better look at your overall situation.

One of the most important aspects of qualifying for an auto loan is your ability to repay it. If you don't have the income to qualify for the initial income requirement, your DTI doesn't matter. Typically, subprime lenders that can work with credit-challenged consumers require a minimum income of around $1,500 to $2,500 before taxes. Once you've met this requirement, a lender calculates your DTI to see if you're able to comfortably pay all other vehicle expenses.

Whether you think so or not, a lender wants to see you succeed at financing!

Ready to Look for Your Next Vehicle?

Now that you know you can add secondary income to help you qualify for a lender's DTI requirements, you can start searching employment apps to see what works for you. When you've got all your ducks in a row and are ready to take the next step toward an auto loan, we've got you.

At Auto Credit Express, we know how hard it can be to connect with the right lenders for tough credit situations. Rather than searching all over town, let us connect you with a local dealership that has the lending resources you need. Simply fill out our fast, free, no-obligation car loan request form, and let us take the hassle out of finding your next vehicle.