Most of the auto loan dealers don’t provide credit services to people who are unemployed and want to get a car loan despite their bad credit histories.
Therefore, if you are currently jobless, you may have altogether drop the idea of financing a car or take steps to improve your chances of getting approved for auto financing with your unemployment record and bad credit history. Just consult an expert today!
To obtain a car loan while unemployed with bad credit history, you need to locate loan dealers that are ready to provide auto loan finances to jobless individuals with or without down payments. Such a proposition might not be feasible although some subprime car loan lenders may agree to approve your application by asking you to pledge a valuable asset as collateral. If your vehicle is new then the best way is to pledge the vehicle as a security against the loan.
There are websites which claim that getting a car loan when unemployed can be a real possibility if you know what majority of the lenders expect from borrowers. Well, that’s not entirely true. Here is some vital information about the same.
Majority of the loan dealers may run credit checks so if you have bad credit, make sure that you take steps to improve credit
You cannot get approved for a car loan when unemployed merely because you have agreed to offer some valuable asset or the car as collateral or indicated willingness to pay down payment. Lenders will also verify your ability to repay the loan and to that effect, you must show that you have some alternative source of income in the form of post retirement pension benefits, interests on deposits, receiving alimony, searching for new job or joining a new job soon, etc.
Even if some lenders agree to grant your unemployed car loan request an approval, majority of them will charge substantially higher interest rates if your credit rating is bad to compensate for the risks involved in lending your money needed for financing car. The monthly payments will be higher and affect your budget as well thereby leading to further credit crisis.
In case, you manage to get a car loan bad credit unemployed program approved by pledging your vehicle or some valuable asset as collateral and miss few payments, you could run the risk of losing the collateral.
Finding lenders that offer affordable auto loans for bad credit no money down programs can be a cumbersome task. But if you have some idea regarding where to look for, the overall rigors of the process may get reduced drastically. Remember, when you have bad credit, banks and credit unions may be less likely to approve you for a car loan unless you show willingness to pay a large amount of down payment. To that effect, you might only have two other options for getting your car financed. It is better that you have some idea regarding these before you start researching your alternatives.