If you are looking for a car loan without having a stable income, it can be a daunting experience. However, at times it is possible to get a car loan despite being an unemployed person. So, getting a car loan despite being unemployed may not appear to be a challenge. Even if you remain unemployed, it can be wise to opt for a car loan as it can help you even find a job. So, looking for a car loan without a job? All you need is to suffice a few requirements.
Let’s check how?
You need other sources of income
While you apply for a car loan without a job, you still need to have some source of income. It could be through any of the following sources:
- Pension
- Social Security
- Alimony
- Rents from your property
- Investment returns
Having income from any of the above sources can make you eligible for a car loan despite having no regular job.
Check your Credit Score
The next vital criterion is your credit score. It plays a key role in getting a car loan. With a decent credit score, the lenders have no issues in approving your car loans. It gives the impression that you have a habit of handling your debts with great care with or without a job. However, even if you have a bad credit loan, you can only get the loans with very high-interest loans for obvious reasons. Such loans are not available with traditional banks. You have to approach buy here and pay here dealers.
You need a co-signer
You have some income source and a decent credit score, yet you may find the approval of your car loans a daunting experience. This can be addressed with a co-signer who is known to have a decent and stable income. This can boost up the chance of getting your car loans approved by your potential bank. All you need is someone who can be your co-signing partner for the loan and he or she is comfortable with the terms and conditions.
You need a decent down payment amount
By paying a down payment, you are more likely to reduce your car loan. The higher the amount the lower is the monthly EMIs and rate of interest. For example, if you get a loan for five years with a fixed 6% rate of interest, you are supposed to pay a total of 2400 USD for the loan. However, if you manage to pay a down payment of 20 percent of the amount which is around 3000 USD then you just have to pay around 1920 USD as your interest. This way, you save a decent amount of 480 USD. In this way, buying a car with a higher down payment will save a lot on your car loan interest.
Wrapping Up
It is very much possible to get a loan without having a job. However, it can be a difficult proposition. You still need to suffice a few requirements as discussed above.