We all dream to have a car of our own, that serve the multi-purpose of our daily life events. From commuting to the office comfortably to going on the long road trip, having a vehicle on your garage can help you in several ways. However, buying a car requires big funding that is not affordable for everyone, especially for young people who are still completing their studies and are unemployed.
Well, there is an option of getting your favorite car with auto loan products in the market. But, when you are unemployed, it becomes really difficult to get approval, given the rigors lending criteria of the traditional lending market.
How to get a loan with the tag of “unemployment”?
Many young people who have just completed their studies or the person who does a part-time job can have the need of a car. There is fear that getting a loan for the car might not be possible if you don’t have a regular job. But, this is not the case as certain reputed lenders are there in the market who offers car finance for unemployed in Ireland.
For the young grads, It is not likely possible to have a credit history as they might not have taken any debt before in their life. Also, there is no denying the fact that lenders do check the credit score before approving the loan, but this is not mandatory. Lenders provide leverage to the first time borrower with zero credit score or probably who has a bad credit score due to unemployment.
In such cases, the lenders who specialize such car financing for the jobless people consider other factors like:
- Your side income status (if you do)
- Requirement of a co-signer
- Providing collateral to secure the loan
Possibility to get approval even with bad credit
The traditional lender in the market who offers auto loans takes the income and credit as the major factors for approval. But, maintaining a credit score is not an easy task in today’s life where we have so much in the name of expenses. One or two wrong financial decision is all it takes to see your credit rating go low.
Still, such people can get the second chance, but the interest rate offered will be slightly high and will be asked to provide a guarantor. Failing in the repayment of the loan will make the guarantor legally responsible for completing the debt. On the other side, securing the loan with any assets makes the lender more comfortable. There will be an option of making the compensation if the borrower fails to complete the repayment of the loan.
Things to keep in mind when looking for a car
If you have got the approval of the loan to finance your car, then you must be really on the cloud nine right now. At the same time, it is important not to get carried away and get tempted to buy the most expensive car available on the market.
In the end, it will be you who will have to make the repayment of the debt. So, ensure that you are taking the amount that you can payback. Going more than you can afford will create a difficult situation for you and might also not be a good start for your credit history (If you are first time borrower).
Securing the loan will definitely help you get lower interest rates and desirable amount, but make sure that you are ready to take the risk.
Wrapping up, it is possible to get a car loan even if you are unemployed, but you must take every step cautiously and smartly to make the most of the fund.