You Can Get a Car Loan With a Temporary Job: Here's How

Thousands of Canadian workers who work seasonally can relate to the ready question of the day. You need to approach credit differently depending on whether you're a seasoned seasonal worker or just trying to make ends meet. We asked our auto loans staff to discuss the challenges associated with getting a car loan while working a temporary job.

Financing a Car Loan With a Temporary Job

Contrary to popular belief, getting a car loan with a temporary job isn't that tough. As long as it's legal, lenders don't really care how you make your money. They are mostly concerned with the consistency and dependability of that money.

They want to determine if you can afford the auto loan over the course of the entire term. They want to know that your revenue is long-term solid enough.

To be eligible, you must...

Have good credit is a must:

Because it will be referred to on all credit applications. The greater your score, the more likely it is that you will be approved for a loan and receive terms that are reasonable.

Have an impeccable payment history:

Although it contributes to your credit score, your payment history is also used on its own to assess how you manage debt. You'll be alright if you never skip a payment. You must provide an explanation if you have ever been behind on payments.

Have little other debt:

Any lender's main concern is your ability to pay, and having other debt that is still owing adds to that. It shouldn't matter if the debt is little and manageable. It might if the debt is more substantial.

To increase your chances, pay off as much as you can before applying for the loan.

Make a respectable down payment:

A lender will look your application more favourably the higher your down payment. We often advise a down payment of between 10 and 20%, although in circumstances like those involving seasonal workers, more is always preferable.

More down payment equals less borrowing required and more insurance for the lender in case of default. The two support loan applications.

Have a permanent home:

whether you own it or rent it, demonstrates stability, which is another favourable trait a lender looks for.

Homeowners obviously have an easier time qualifying for an auto loan but renters with a stable home like can also qualify.

Whatever your job and whatever season you work, if you work with experts, there should be no reason why you cannot access car loans with a temporary job.

If you're ready for a car loan, we'd love to help! Simply click here to get pre-approved online today.