Can I get a car loan with only unemployment income?

I'm currently unemployed, but I get unemployment income. Can I get a car loan with unemployment as my only source of income?

Answer
Sorry to hear that you lost your job! Hopefully, things will get better soon.
As far as getting a car loan, the likelihood of a lender approving you is highly unlikely. Because unemployment income is temporary and runs out after a certain amount of time, lenders don’t consider it verifiable or steady income.
The best plan of action is to save a little bit of money from your check each week if possible. Then, use this money to buy a decent used car.
Alternatively, you can wait to get a car loan once you have a job and steadily save money over three to six months. Lenders will require you to show them at least three to six months of income depending on your credit score.
Whichever avenue you choose to take, make sure that you also budget and shop around for car insurance. The Jerry app takes just minutes to sign up on and you can get quotes from over 50 insurers for the coverage you require.
Eric Schad
Answered on Nov 16, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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