Having a car when you are unemployed is more of a necessity than a luxury. Unfortunately, everyone knows that the price of a car is far too high for a person with limited resources.
If you are a job seeker and you need to buy a vehicle, the best way to do this would be to take out a car loan. But is it possible when you are unemployed? Of course ! You just have to contact the right organizations and take the right approach.
How do you go about it? Who to contact? We tell you everything there is to know about auto loan for the unemployed.
The possibility of having a car loan
The first question everyone asks is “can we get a car loan when we are unemployed?” You may like the answer because it is positive. In reality, there is no law prohibiting the unemployed from applying for a loan. However, it should not be forgotten that the granting of credit will always depend on the profile of the applicant. Indeed, upon receipt of the credit application, the bankers analyze the creditworthiness of the client based on several criteria, the most important of which are professional status and income.
But rest assured, the professional status of unemployed is not always synonymous with a rejection of a credit application. If you have a fairly large unemployment benefit, you have every chance. On the other hand, if your allocations are low enough, there are other ways to regain the trust of credit institutions as well as special organizations to help you.
The importance of having a car while unemployed
As mentioned earlier, a car is often a necessity for the unemployed. Indeed, the vehicle may be essential for job hunting, for work-related trips such as interviews. It is also a great way to improve the chances of getting a job by expanding the job search area.
Finally, the job seeker can take out a car loan, as some companies require employees to have a personal car. Contrary to what the majority of people think, the demand for a car loan for the unemployed is therefore completely justified.
A new car or a used car?
Now we have to determine what type of car an unemployed person can buy. Here, we cannot give a precise answer since it depends on the resources of the applicant. If you have savings and the allowances you receive are substantial, you may be able to request a credit for the purchase of a new car.
However, if you do not want to find yourself in a situation of over-indebtedness, opt for a used car. In addition, it should not be forgotten that the banks are suspicious of the job seeker and a slightly too greedy demand would not help the situation. In short, for your good and to reassure the credit organizations, take out an auto loan for the purchase of a used car, because it is much cheaper.
How to apply for a car loan for the unemployed?
Credit organizations and associations have become aware of the importance of buying a car for an unemployed person looking for a new job opportunity. As a result, there are quite a few of them offering offers to meet everyone’s needs.
We can say that the banks are quite strict regarding the evaluation of applications for credit for the unemployed. Indeed, they do not grant any credit to people with low incomes, for fear of encountering difficulties during repayments.
And to ensure the creditworthiness of each credit applicant, bankers do not hesitate to demand documents such as tax notices and pay slips. If you have low income, you will have to use other methods to reassure creditors.
The real guarantees
The actual guarantee is property belonging to the credit applicant. It must have a value at least equal to the amount of the credit requested. Thus, when the client cannot pay his debts, the bank seizes the property and sells it at auction to reimburse the credit.
If you do not have real guarantees, you can also have recourse to personal guarantee or surety. It is someone around you (a family member, a friend or someone you trust) who can stand surety for you. And if you fail to honor your debts, the surety will take care of paying them off.
The online unemployed credit
If it is to take out auto credit to improve your chances of getting a new job, you can count on online credit. In addition, this type of loan can make your life a lot easier since you can apply anytime, anywhere. To apply for a car loan online, you must first find the suitable offer. To do this, simply connect via a computer, tablet or even a phone.
On the search bar, type “auto loan for the unemployed”. Then you have to choose from the many results offered. We advise you to opt for sites that offer online simulations. Completely complete the proposed form. Subsequently, you will get proposals tailored to your needs and if the proposal suits you, all you have to do is go to the next steps and build your credit application.