Finding an affordable auto loan with less than perfect credit can be difficult. One of the major issues many bad credit auto loan applicants run into is meeting employment requirements for a bad credit auto loan.
Lenders love predictable borrowers with a stable income and job history.
Almost every single bad credit auto lender will have different requirements in place when it comes to employment standards. However, there are some certain factors almost all car lenders will require.
With employment, lenders like to see applicants have at least 6 months of employment at their current position.
Being active in the job force for the last 3 years also provides additional reinforcement.
Having long strings of unemployment could hurt your chances of securing an auto loan.
By looking at your employment history, an auto lender will be able to determine the likelihood of you repaying your auto loan.
Auto lenders simply want to ensure that you are able to keep up with your monthly auto loan payments while still being able to pay for gas and insurance. If you have had a tendency to change careers frequently, a lender could view this as a sign of instability.
Many lenders recognize that some jobs such as in construction and fishing can be seasonal. If you have been unemployed but have worked in the same industry for a few years, a lender could make a special exception.
If you have multiple sources of income, most auto lenders will only allow you to list one single source of income or employer. Be sure to list the highest source of income you have. Most lenders look for at least $1,500 in pre-tax monthly income for a bad credit auto loan.
If you are looking to buy a new car but have less than perfect credit, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!