Getting Approved with a Part-Time Job

Get Car Financing
Even with poor credit.

By

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, - September 14, 2017

Bad credit can make it difficult to be approved for an auto loan. It can be even harder to qualify on a part-time income. But a subprime lender may be able to help, as long as you meet their requirements.

Qualifying with Part Time Income

Subprime lenders look beyond credit scores, and one important requirement is income. Typically, subprime lenders require borrowers have an earned income, before taxes, of $1,500. Length of employment is also a factor, so it helps to have been with the employer for at least one year.

Unfortunately, the income to qualify for a car loan must come from one source. Income from two or more jobs can’t be combined to meet the required minimum.

How Multiple Incomes Can Help

Having multiple part-time jobs can still be to your advantage – once you qualify – because of the debt-to-income ratio. Lenders measure DTI to judge a borrower's ability to make additional monthly payments. It's calculated by dividing monthly debts (including your new car loan and car insurance payment) by gross monthly income. To qualify for financing most lenders look for a DTI of 50 percent or less.

For example, take Job X and Job Y. Job X earns a gross of $1,500, which qualifies based on income, however, the borrower has $800 in monthly debt, so it doesn't qualify because of a 53-percent debt-to-income ratio. But if the borrower adds $500 of income from Job Y, the DTI drops to 40 percent and becomes acceptable.

Getting Approved Even with Bad Credit

Even as a buyer with bad credit and a part-time job, you can qualify for an auto loan. It will be even easier if you find the right place to look for your next vehicle. However, not every dealer (or lender) is willing to assist people with bad credit. That is where CarsDirect can help.

We work with one of the nation’s largest networks of special finance car dealers, who have the lending resources available to work with people in a wide range of credit situations. Let us help you find a local dealer that is right for you. Our service is free of both cost and obligation. Get started by filling out our online auto loan request form today!

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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