Can You Get a Car Loan If You Are Unemployed?

There are certain situations that will allow you to receive a car loan even if you are unemployed. If you meet the lending criteria for financial institutions, they will approve your loan.

Consistent Income

If you have the ability to pay, you can be approved for a car loan. There are sources of income such as Social Security, pension, interest income, disability income, VA benefits or court-ordered child support that may qualify you for a loan.

Credit History

Lending institutions will consider you for a car loan if you have the willingness to pay. If you have paid your debts on time in the past, it's most likely you will be approved for an auto loan.

Stability

You need some type of stability. If you have been at your residence for one year or more, this demonstrates some type of stability. Your previous residence also will be considered. This criterion is not as important as the first two.

Down Payment

Having a down payment to put down also will help you get approved. When someone has a down payment, they are less likely to default on the loan.

Co-signer

Sometimes you can get a co-signer to strengthen your loan application. If you are insufficient in one of the areas above, a co-signer can be considered. However, when you miss a payment, the co-signer will be expected to pay.

Bad Credit Loan

If your credit is bad, you could qualify for a bad auto loan. There will be substantial fees, and the interest rate will be higher, which means you pay more money in finance charges.