If damaged credit has been a problem during your search for an auto loan, your employment history can be extremely important.
When you're looking for auto financing, a subprime lender looks at factors such as your credit and employment history and income in order to determine whether or not you meet the minimum requirements for a loan.
Recently, a potential applicant asked us the following question in regards to approval requirements:
"How long does your company need an applicant to be employed with her or his job in order to qualify for a car loan?"
At Auto Credit Express, we get this question all the time. An applicant's employment status plays a huge role when dealing with a subprime lender, and can be more important than the applicant's credit score.
But before we get to that, we must emphasize that Auto Credit Express is not a lender. What we do is connect applicants with auto dealers who work with lenders that are able to provide the best possible chance for them to get approved for an auto loan.
Now that we have cleared that up, we can move on to answering the more important part:
How long do you have to be employed in order to qualify for auto financing?
When you are working with a subprime lender, they will place more emphasis on your employment history and income. They want to see stability. So, to answer the question: a subprime lender will generally want you to have a minimum of 6 months of job history with your current employer with a 3 year history of past employment.
However, these requirements can vary from lender to lender.
Breaking It Down
In many cases, people find better opportunities in their line of work, or they switch professions altogether. Generally, if you don't have any long gaps (60 days or less) between past employment and your current employer, it is likely that a lender will not take issue with the short amount of time you have spent at your new job.
However, if you are unable to show a long-term history of previous employment, your residence history may help if you have lived in the same area for an extended period of time.
You should also know that seasonal jobs may be a problem for a lender. If your job is seasonal, and you have worked there for less than six months, a lender will not be able to approve you based on that income. However, if the seasonal job is a recurring one, a lender might still be able to work with you if you can show that you can meet the minimum income requirements. In this circumstance, lenders will typically want to see additional documentation, including bank statements and tax returns that show a work history of at least 3 years to verify that you have the income. Also, it is important to note that income from unemployment benefits cannot be used to satisfy a lender's income requirements.
If length of employment does indeed become the deciding factor for loan approval, there are other ways you may still be able to convince a lender to work with you, such as getting a cosigner or having a large down payment.
Get the Financing You Need
Auto Credit Express has a nationwide network of car dealers who work with lenders that are experts in financing car buyers with bad credit. Our service is free and is of no obligation to you. Once you complete the fast and secure online application, we will match you to a car dealer in your area that is best equipped to work with your unique financial situation. You have nothing to lose and everything to gain. Start today.