Your employment situation is key to whether your loan application gets approved or not. It tells the lender if you are earning sufficiently to pay back the loan. Ideally, you should have a stable job when applying for a car loan, but that may not always be so. You have to deal with economic realities of today. A part time job is good if you are in college, have just graduated or are in desperate need of a paying job and a part-time job is better than nothing.

So what do you have to keep in mind when applying for a car loan so that you can improve your chances?

Credit Score

A credit score of over 650 is considered very good.

Credit History Issues

Issues in credit history refer to late payments, pending debts or even that you had filed for bankruptcy. These don’t bode well for your car loan application.

Job Consistency

How long have you been with this part time job? What about previous jobs? How long did they last? These are crucial questions a lending agency will ask when considering your car loan application.

Money in the Bank for Down payment

Down payment is basically the cash money which you hand over to the dealership at the time of purchase. Lending agencies expect you to not completely rely on the loan for paying the dealership.

Price of the Car

Which car are you going for? The fact that you are applying for a loan means that you can’t afford it. Higher the price of the car, more the loan amount and greater the interest rate. The lending agency will question if you can manage to pay back with your part-time job.

Co-signer’s financial situation

One of the best ways to win over a lending agency is to introduce a co-signer with your auto-loan application. However, the lending agency goes over your co-signer’s financial situation just like they would do yours. They check the credit report, credit score and employment history.

If your co-signer has a better financial status, it’s better for you.

What if it’s not working out for you?

There are so many things you must consider when sending in the car loan application. Credit history, credit score, employment history, car price; there is a lot to worry about and a lot that can go wrong. Each of the above points gives the lender agency a reason not to accept the loan application.

Another option instead of getting rejected by a lender agency is to utilise Insta Auto Loan. Whether you have bad credit, are in deep debt or your financial situation is in the red, Insta Auto Loan will grant you credit swiftly.