People often find themselves stuck in tough situations where they need a car to get a job, but they need the income from a job to get a vehicle. It may seem like a no-win situation, but it doesn't have to be. It's still possible to get the car you need, even if life throws you an employment curveball.
Why Have Car Loan Employment Requirements?
When it comes to bad credit auto loans, lenders look beyond your credit score to help get you approved. They look for things that indicate you have stability, and that you're able to successfully complete a car loan.
Most people would think that employment requirements have to do with proving your income to a lender. In some respects, they do, but only so far as your paycheck stubs are concerned.
What an employment requirement really adds to is the stability factor for a lender. The longer you've been employed at the same company or in the same line of work, the more stable you are in the eyes of lenders.
Bad Credit Auto Loan Employment Requirements
To show a lender stable employment, they prefer you to have at least six months on the job before you apply for a bad credit auto loan. It's also best if you have at least three years of employment history to show, with no major gaps between jobs. Major gaps are typically thought of as anything over 60 days.
But, what if you're in between jobs?
If you're in between jobs, a subprime lender may not be able to approve you for a loan. Even if you're on unemployment, those checks only cover basic needs and aren't considered an acceptable form of income to qualify with subprime lenders. Not to mention it doesn't help you meet the employment requirements. But all hope isn't lost – there's still one option left for you to consider.
Getting By With a Buy Here Pay Here Loan
If you need a vehicle now and have enough money for a down payment, a buy here pay here (BHPH) dealership may be just the ticket. These dealers are also lenders, so they don't typically check your credit, or even care about your employment, as long as you have the income to pay your loan.
BHPH loans generally come with higher than average interest rates, and car selection is limited to used vehicles that are on the lot. However, the ease of getting approved regardless of your credit may make it worthwhile for certain buyers.
Just be sure the dealership is in a convenient location, because you may have to pay your loan in person. Plus, you could be put on a weekly or bi-weekly payment plan, depending on your own pay schedule.
Let Us Help Lead the Way
If you're ready to find the auto loan for your credit situation but don't know where to turn, Auto Credit Express can help. We connect people with bad credit, no credit, and even bankruptcy to local dealers that have lenders that know how to handle unique credit situations.
Our network of special finance dealerships stretches all across the country and the process is easy to get started. Just fill out our no-obligation car loan request form, and we'll get to work finding a dealer in your area to help!