Car Loan With No Job: 4 Must-Haves For Getting Approved

Car Loan With No Job: 4 Must-Haves For Getting Approved

Posted on July 14, 2023

The feeling of being unemployed can be quite tough to handle. You thought your job was secured, only for you to get fired, laid off, or even caught up in company issues.

Now, with the tough feeling of dealing with being unemployed and how you are going to pay your bills, you are also wondering how to get a car loan.

However, before going to a car dealer, you need to have a better understanding of how car loans work. Then you will be able to determine whether you should go ahead with it.

Now, let's take a look at how you can get a car loan while unemployed.

The ability to get a car loan while unemployed depends on various factors, such as your assets, credit score, and whether you have other sources of income.

You'll Need Other Sources of Income

In cases where you have another means of making money other than a regular job, that could help you get a car loan.

Some of these sources of income include pensions, veterans’ affairs benefits, rental properties, alimony, social security, investment dividends, and regular proceeds from the trust.

Also, there are cases in which the lender accepts individuals with an upcoming inheritance, an independent contract agreement, real estate, or even a pending sale of investment property.

In most cases, lenders will want to see consistent and legal proof of a long-term income.

You Might Need a Co-Signer

If you can get someone, such as a close relative, friend, spouse, or even your parents, with a steady source of income, they will be willing to co-sign your car loan.

This will make your lender more willing to help out.

The major reason for having a co-signer is to guarantee that you will eventually make the payment in full and at the appropriate time.

And, in situations where you are unable to make a payment, your co-signer will be the one to make the payment.

Make sure the person co-signing for you has an excellent credit score and has proof of stability in employment.

You Need a Down Payment

If you can save up and make a large down payment of a significant amount of money, there will be no need for you to take out a large loan that may not be easily approved.

You can decide to set aside a particular amount of money from your other sources of income and from your monthly unemployment check.

You Need a Good Credit Score

If you have an excellent credit score, you have a much higher chance of getting a car loan with no job for a pretty low interest rate.

Therefore, try to increase your credit score to somewhere between 740 and 850 by paying off your pending debts, after which you can now decide on getting a car loan.

If you're ready for a car loan, we'd love to help with that! simply fill in the form below to get started.