Tips for New Employees With Bad Credit

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 It is not uncommon for credit reporting agencies to have outdated or completely wrong information on there.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

Don’t settle for the first financing option offered by the dealer. Just as you would when you were shopping for a new television, shop around for the best financing option. Visit your local bank, credit unions in your area, the internet, anyone that offers new automobile financing. Everyone is going to offer you a different deal. As the consumer it is up to you to find the deal that works best for you. Make a list of the top five offers you have received and don’t be afraid to tell each one about the competing offers you have received. They might be willing to adjust their offer to get your business.

Haggle a Bit

Finally, don’t be afraid to negotiate for the terms you want. This might include increasing your down payment or adjusting the length and terms of your new automobile loan. Whatever it takes, be tenacious and persistent and it will work out better for you in the long run. Then you can be the new employee with the new car, instead of just the new employee!

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