Do you think getting car loans for unemployed is impossible? You are wrong. In this blog, you will get your answer for Can you get a car loan if you’re unemployed? and is it a smart decision to take out a car loan when you don’t have a job?
“I have been unemployed for quite a long time since the pandemic. I have managed to pay flawlessly for my repayments for the last 2 years. But now, Covid-19 has eaten up all of my savings leaving me behind completely cashless with low credits. Do I still have a chance of hope for car loans for unemployed person or Can I Get a Car Loan If I Am Unemployed during Covid-19 pandemic?”
Car Loans for Unemployed: An Introduction
Unemployment can jerk you off your tracks at any point of time in life. It might not just be difficult having to deal with a financial crisis unexpectedly, but also compromising your short term financial goals.
Say, for example, you lost your recent job as the only source of income while you almost planned to purchase a new car. What to do next? You would have to keep your savings secured until you get the next perfect job for yourselves. Then, what about purchasing a car? That’s where the question arises of can you get a car loan on unemployment? Then the option of car loans for unemployed comes in, for your help. Instead of losing hope, you can try looking for car loans if you have recently been planning to finance a car despite being unemployed.
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Keep reading and find out more about car finance for unemployed and bad credit. You would be glad to know about car loans for unemployed as you approach the conclusion.
Unemployed and Need a Car Loan: What makes it hard to approve?
Being unemployed and still having a requirement for a car isn’t odd in the pandemic era. A lot of people lost their jobs and are unemployed for a long time. Therefore in this situation, asking for car loans for unemployed can bring you few benefits :
– You can keep your valuables secured to your bank as collateral.
– Unemployment car loans can give you the lowest interest rates
– You can enjoy flexible repayment options that will be perfectly affordable
– You don’t need to drain your savings to get a car and you can afford it with easy monthly installments
Long story short, before you read further, it’s good to know that getting car loans for unemployed isn’t easy enough. The reasons, as per the lenders’ perspectives are too relevant to be understood.
So, have a look upon what makes it hard for a lender to approve you for car finance for unemployed:
- Employment status as a matter of income:
In the loan market, lenders usually prefer financing cars for those with a stable income and other assets as collateral. This is because it assures them(lender) from the borrower’s side to be repaid for their loans in the future. Thus, before approving car loans for unemployed, lenders take a thorough check over your employment status, income, and similar assets.
- Employment status as a source of financial assets:
Employed status depicts that you are capable to repay your loan installments in the future anyhow. You could seek help from your higher employed authorities or business partners. But that is only possible when you are involved in any employed/self-employed activities. Thus, the lender views employment as a means of financial assets with you capable of repaying your loans in the future.
So, to be honest, and frank enough, being unemployed for a longer time, might keep you away from getting a car loan for yourselves. However, don’t lose heart as it isn’t a complete truth disclosed yet. You could present various other assets to approve your car loans for unemployed. Read ahead to find out what all could give you guaranteed car finance for unemployed.
Can I get a car loan if I’m unemployed?
As promised, you deserve to know what you can do to get a car loan despite being unemployed for a notable time duration. Here’s rather a step by step plan for you to go and get an easy car loan as an unemployed:
- Analyzing your unemployment reasons
- Complimentary documentation as a source of income
- Collaborating your used financial assets
- Residential/ Property related assets
- Credit reports and scores
Analyzing your unemployment reasons: Before proceeding any further, look over and analyze for what reasons you have been unemployed. Are you a senior citizen, a homemaker, or a fresher? Or have you recently quit your job due to some unexpected reasons? Once you understand well what has kept you away from working as an individual currently, you shall be quicker to open the doors to financing your requirements.
Complimentary documentation as a source of income: Having looked over what your reasons are for being unemployed, you can now unlock the door to your car financing. Here is a list of complementary documents you can present to your lender for approving quick car loans for unemployed:
- Proof of Pension: If you have retired for a long time and that is the reason for your unemployment, you can proudly show your pension as proof. The lender shall be assured enough that you are capable to repay your car loans even as an unemployed.
- Proof of Disability income: You can present your disability income as a source of income too. That would ensure the lender that you are good to pay your loan installments in the future timely.
- Return on Investment: You can use your return on investment as a document of income proof to the lender’s satisfaction.
- Interest income from Fixed deposit (FD): You can also use your interest rate documents as generated in your fixed deposits with your banks.
Collaborating your used financial assets: Do you have any other used assets such as an old car, or something as an equity to your finances? You can use these assets as well if you wish to get a car loan for unemployed. The financial assets which you kept using or were unused for a longer time could now give you an extra advantage. That’s for your new car loan as an unemployed!!
Residential/ Property related assets: You can show your lender your current residential proof or any property registered in your/ beloved’s name kept for your wellbeing. All that lender needs to be assured of is that you’ve got some financial backbone to repay your loans in the future.
Credit reports and scores: The most important thing to be noted is: Keep your credit scores updated and as good as possible. Getting car loans for unemployed or bad credit can be more difficult at a bank, credit union, or other lenders. Some lenders advertise that they accept people with poor credit or none at all. But those lenders can charge interest rates that are much higher than the rates you’ll find at a typical bank or credit union. Apply for car loans for unemployed at Your Own Funding, even if you have poor credit. Your Own Funding will help you find the best lender for your car loans for unemployed according to your requirements. But, don’t forget to work continuously upon your credits as a primary focus.
Bonus tip: Exploring the lenders to best suit your requirements: This is rather a bonus tip you would love reading too!! Ensure that you explore the loan market very thoroughly to find the best lender for financing your car as an unemployed too. If you’re planning to buy a car and you have savings, a larger down payment could also help you.
For eg: You apply for a car loan for unemployed for a fixed 6% interest rate on a five-year loan for $15,000. You had to pay $2,400 interest over the life of the car loan. But if you made a down payment of $3,000 which is 20%, you had to only pay $1,920 interest. You can save $480.
But this is a very bad idea if you intend on selling or trading the car in before the loan is paid off.
Car Finance for Unemployed and Bad Credit::
Having bad credits isn’t to blame as your intentional fault. Though you need to look and work over the reasons that have got your credits desperately down. To obtain approved car loans for unemployed with bad credit history you need to locate the loan lenders who lend funds to individuals with bad credit and unemployed. Usually, lenders don’t believe in giving loans to bad credit holders. But if you manage to work as directed in the above ways, you are sure to get a guaranteed car loan for unemployed.
Apart from working on your credit reports, here’s what you should focus on while getting yourselves a car loan as an unemployed person:
- You need to maintain proper documents as an assurity to repay the loan installments to your lender on time.
- Look for the lenders who are most likely to negotiate with your bad credits without high-interest rates, hidden costs, strict collateral. Things do not end here after getting a car as it may require repairs so check out how to pay for car repairs with no money.
Can a Non-Driver Get Car Loans for Unemployed?
Most of us have this question in our minds that “Do we need to have a driving license to apply for car loans?”. Different lenders have different criteria to approve your loan but there is no such law that needs a borrower to have a valid driver’s license in order to get car loans for unemployed.
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To cope with your unemployment especially when it comes to fulfilling goals like car finance for unemployed. Sounds a bit more stressful during times like pandemic. When you realize that your income and employment situations are not moving in the right direction, you need to find the right type of lender for getting a car loan while unemployed. But not to worry, as you’ve got to have all financial help during the COVID-19 and after. Your Own Funding will help you to get easy online loans with bad credit. Car loans for unemployed are one of the most concerning issues of concern. You can come up with any of your loan related queries to get the best solutions for yourselves.
Hope you have your dreams involving car loans for unemployed accomplished very soon!!
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