There are many reasons someone might need a new car. Often the most important reason they need a new car is because they have started a new job. They might need reliable transportation to and from work or they might need a vehicle that better suits their new position.
Lenders Want to See a Stable Work History
Whatever the reason a new employees might need a new car there is one undeniable factor, it can be difficult for new employees to secure financing for a new car because their job history is not long enough.
Every lender looks at your employment history as one of the factors for making funds available to you. They want to know how long you have been working, how often you change jobs and, in essence, how stable you are. They want to know you are someone with a steady income who is reliable enough to hold a job for longer than a few weeks or months at a time.
Another big piece of the financing puzzle is your credit score. Just about lender will use your credit score to determine whether or not to loan you money and if so, at what interest rate and under what terms. Your employment history and your credit rating are the two biggest factors to securing a loan for a new car.
Prove You Are Reliable
If you are a new employee and need a new car there are a few simple steps you can take to make certain you avoid a denial based on employment history. First, be ready to show your full employment history. Any documentation you can provide which shows you have a stable work history will go a long way toward helping you secure a new car loan with terms you can live with.
Also, run your own credit report and start checking it for errors. It is not uncommon for credit reporting agencies to have outdated or completely wrong information on there. It is up to you, the consumer, to find these errors and provide the documentation to have them removed and corrected. Your credit report impacts your credit score, so having the right information on there is crucial to getting a good auto loan.
Shop Around for the Best Financing
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