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Can You Get a Car Loan if You Just Started a Job?

Your ability to get a car loan right after starting a new job depends on several factors. In addition to the factors you may expect such as income and credit history, lenders are going to look at down payment and whether you are switching to a job within the same industry.

New Job, Same Industry?

Since you just started your job, a lender will look to see if the new job is within the same field or industry. Maybe you have only been with Company X for three months, but you worked in a similar industrial setting for the previous three years, so it looks as if you have worked within the industrial category for more than three years. On the other hand, if you switch from industrial work to a career in the healthcare field, you will have trouble getting a loan until you have worked for at least a year in your new career field.

The Big 3:  Credit, Income, Down Payment

Once you have passed the work category hurdle, you will face the more traditional obstacles to getting a loan. First will be your credit history. The lower your credit score is, the worse your chances of getting a loan are. Next will be your apparent ability to repay the loan. If you switched to a lower paying job, you may not get the loan you need. You will have to consider how much you pay out each month. Are your total payments more than 30 percent of your after tax income? If so, you may want to pay something off before applying for a new loan. Lastly, a lender is going to want to see how much you have as a down payment. You will need at least 10 percent down, but the more money you have down, the more attractive your loan application is. 

For more information, check our article:  How Long Do You Have to Have a Job to Get a Car Loan?

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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