Auto financing is by far the most common way to buy a car these days. Reason: almost nobody has the cash on hand to buy a car in cash, on the spot. Usually, some sort of auto loan is required to get behind the wheel of your own ride.
Of course, leasing is also an option. But, when the lease expires, you really do not have anything to show for the car; you have built up no equity or ownership in it.
So You Have A New Job ? Now You Need A Car!
There are a lot of reasons to need a new car. Sometimes, a car just gets old and needs to be replaced. Or, maybe you get a promotion and have the money to buy something nicer. It is also very common to get a new job and therefore want to buy a new car.
Why Employment History Helps Secure A New Loan
Auto lenders look at a number of factors when deciding whether to extend you an auto loan. One of the biggest factors is your employment status. If you have held the same job for at least one year, lenders are more likely to give you a loan. This is because they see you as someone with a steady income who is responsible enough to hold a job for a period of time.
The Other Main Factor: Your Credit Score
The other big factor in whether you get offered an auto loan is your credit score. The credit score is a nearly universally-recognized way for financial institutions to judge their level of risk if they are to extend you a loan.
Between your credit score and your employment status, these two factors make up for a large share of the factors determining your loan status and also the interest rate you will be offered.
Auto Financing For New Employees With Bad Credit ? 5 Tips
So, what do you do if you are a new employee who also has bad credit? Yes, the road to auto financing is a little bit tougher, but it can very well lead to putting you behind the wheel of a new or used car. Here are 5 tips that can help:
1. Prepare to show your recent employment history leading up to your new (current) job: The next-best thing to employment status is a solid employment history. Prepare any documentation you can find in order to be able to show to lenders.
2. Run your credit report and clear up any glitches: Even though you know you have bad credit, how bad is it? And, can you fix any mistakes on your report which could give you a better score? The only way to know is to run your credit report.
3. Consider auto dealers, banks or credit unions: When thinking about lenders to apply to, think of any banks, credit unions and auto dealers that you have liked or had a good experience with over the years.
4. Build a list of 5 credible auto financing lenders: You will want to build a list of at least 5 auto financing lenders to apply to.
5. Negotiate hard and be persistent: Now, go ahead and apply to all of the lenders. Make sure you follow through and apply to all of them: it could be that last lender on the list that offers you the best rate.
Follow these 5 tips to get better auto financing for new employees with bad credit.
Auto Financing For New Employees With Bad Credit ? 5 Tips
Source: http://www.financialcrossing.com/auto-financing-for-new-employees-with-bad-credit-5-tips/
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