Does your employment status matter when you're applying for a car loan?
I know banks and other lenders care about things like my credit score, but what about my employment status? Does that matter to them?
To a certain extent, yes. Lenders want to understand how you plan to pay back the money you owe. The best way for them to do this is by asking about your employment status and the income you derive from your job (or jobs).
Although there are exceptions, most lenders like to see permanent positions with a minimum tenure of six months. This demonstrates the stability of the income, which is important since car-loan terms can be several years long.
Pay stubs are the easiest way to verify income, but lenders will generally call employers to verify dates of employment, especially for borrowers with a poor or limited credit history.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Can I get a used car loan if I have a credit score of 540?
"I want to get a car to help build my credit. The car I want costs $15,000, but my current score is 540. Can I get a used car if I have a credit score of 540?"
Jun 07, 2021
Is a 60-month car loan too long of a loan?
"Is a 60-month car loan too long? I want to finance a car, but I can only afford it if I extend the payments out for 60 months."
Jul 28, 2021
What do I do if I can't afford full-coverage car insurance for my financed vehicle?
I got laid off recently and I can't afford to make payments on my full-coverage insurance. What happens now?
Apr 12, 2021