Cases like these, though rare, may not even be considered. If you work for cash or don’t get traditional checks, you’re often required to provide notarized letters of employment from your company.If you earn unemployment during that time, it can’t be used as proof of income (or employment). This is because lenders need to know that you can continue to make the loan payments during the off-season. This means extra documentation such as bank statements and tax returns, typically for at least three years. If you’re not employed year-round, but instead work a seasonal job every year, you usually have to provide more than your check stubs as proof of income and employment.This means if you have several jobs, or are a part-time employee on top of your full-time job, only your main income source counts toward the employment requirement. In addition to being employed for at least six months, lenders that work with bad credit borrowers typically require all your qualifying income to come from one job.Now that you know the basic employment requirements for a bad credit auto loan, let’s look at some unique employment situations and how they could impact your ability to get a car loan: The length of time you’ve been employed helps a lender judge if you have a stable income. When lenders consider you for an auto loan, they look for your ability, stability, and willingness to successfully complete a loan.
One of the requirements for bad credit car loan approval is your length of employment. Plus, working with this type of lender requires you to meet a number of qualifications in order to be considered for financing – not just employment, but income, residence, and personal references as well.
People with poorer credit, however, typically need to work with special finance lenders, and these lenders aren’t always easy to find. Chances are high that there won’t even be a question about your employment or income unless you don’t have much credit experience. With a credit score falling in the “good credit” range (typically considered a FICO credit score of 670 or higher), you’re likely to qualify for auto loan approval through a traditional lender. When you need a car loan, your credit situation is a strong indicator of the type of lender you should work with. Your Credit Score Plays A Big Role In Your Car Loan This is rare and depends on the lender you’re working with and your individual situation. In some cases, if you haven’t been on the job long, but have a history of stable employment and meet all the other requirements for financing, a lender may consider you. Even with long job history, if it’s clear that you jump from job to job, or only remain employed for short stretches of time, you’re not likely to get approved, either. If you don’t have the employment history a lender is looking for, your chances for a car loan are slim.
Additionally, lenders need to see that a potential borrower has at least three years of employment history, with no gaps lasting more than 30 days between jobs. Generally, lenders require that a bad credit borrower be employed at their current job for at least six months, though one year is preferred. Employment Requirements For Bad Credit Auto Loans If you have poor credit, employment stability is a key factor in qualifying for a car loan. However, there are a few general guidelines for employment that most subprime lenders stick to when it comes to auto loan approval. The length of employment time needed to be considered for a car loan depends on the lender you’re working with.
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