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Do You Need a Job for a Bad Credit Car Loan?

Consumers often ask us for advice about how to go about getting auto financing when they have credit challenges. Take this customer inquiry we recently received:

“I just put my request in, but I have more than one job. I was only able to put one job down, so, what do I do to fix this issue and get a loan?”

One thing most people don’t realize is that there are many requirements involved in getting an auto loan – including employment qualifications. In truth, more goes into job requirements than what you make. Though it varies by lender, the general requirements are pretty much the same.

Does Having Two Jobs Help Qualify for a Car Loan?

Typically, lenders require a $1,500 minimum monthly income to qualify for a subprime auto loan. The catch is that the income must be from one job. Even if you have multiple jobs, those incomes can’t be added together to meet this requirement. That doesn’t mean a second job won’t help, it will – but only after you’ve met the minimum requirement with your “main” job.

Your second job will help show a lender that you can comfortably make loan and insurance payments. By adding the gross (before taxes) monthly income from your second job to that of your first job, your total income can then be used when a lender determines your debt to income (DTI) and payment to income (PTI) ratios. Both DTI and PTI help a lender determine if you can afford a car loan.

It’s Important to Have a Stable Job History

Not only will your minimum income need to come from a single job, but you’ll need to have been there for a while. Most lenders require at least six months at your current job to qualify. Another thing they’re looking for is stability, so you’ll need to have at least three years of work under your belt, with no big gaps in employment (30 days or more without a job).

This doesn’t mean you need to show years at the same job, but a little stability goes a long way. Someone who has a lot of gaps in employment, or jumps from job to job often, may have a harder time getting a loan.

Seek the Right Lenders for Your Auto Loan

In order to qualify for a bad credit car loan, you need to be employed. Lenders want to see proof of taxable, earned income in the form of current check stubs to determine your ability to repay a loan. Not all lenders, however, can work with people who are struggling with credit issues. That’s why it’s important to find a special finance dealer that has access to these types of lenders.

Here, at SLG Progressive + Commercial Insurance Agency, we specialize in helping consumers with bad credit find local special finance dealers. We work with an extensive network of dealers all across the country, so what are you waiting for? Simply fill out our no-obligation, free online auto loan request form to get started today!

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