So you need a car, but you have bad credit or no credit history? Have you heard about car dealerships that advertise things like “Your job is your credit car dealerships” or “Bad credit? No credit? No problem!”?
Essentially, these types of dealerships offer auto financing to those who may not qualify through traditional lenders due to past credit mistakes. Rather than basing approval solely on credit scores, they take other factors – most importantly, your current income – into account when extending financing.
But how exactly does your job is your credit car dealerships work, and should you consider buying a car through in-house dealer financing if your credit isn’t great? Let’s explore these questions about your job is your credit car dealerships in more detail.
What Is A Your Job Is Your Credit Car Dealership?
The name goes without saying – while traditional lenders may focus on your credit history, these dealerships place more weight on your current employment status. This means that as long as you have a steady income, you are more likely to be approved for financing.
However, this doesn’t mean that bad credit won’t affect your chances. Your past credit mistakes will still be taken into consideration, but they won’t necessarily be the deciding factor in whether or not you can secure financing.
Benefits of Using Your Job Is Your Credit Car Dealerships
If you have bad credit or no established credit history, a “your job is your credit” car dealership can provide important benefits not offered through traditional dealer financing, banks, or credit unions.
No Credit Check
The most critical benefit is that these dealerships generally do not run formal credit checks or base approval decisions on your credit score or report. That means whether you have no credit, poor credit due to past mistakes, or even a current bankruptcy or repossession, approval is still possible. They offer a way to get back on the road through an in-house auto loan.
Approval Based on Income
Rather than examining your credit, these dealers focus on your current ability to make regular payments. That ability comes down to your income. As long as you have proof of full-time employment or other consistent income sources, approval can be achieved.
Chance to Establish/Rebuild Credit
While approval does not consider your past or current credit reports, some dealers do choose to report your on-time loan payments to credit bureaus each month. Making every payment per the loan terms enables you to establish a positive credit payment history and incrementally improve your credit over the loan term.
If poor credit is holding you back from securing a reliable vehicle, these dealerships offer an alternative path based primarily on the ability to repay the loan each month using your job income.
How the Approval Process Works
The approval process at “your job is your credit” and “buy here pay here” dealerships generally works as follows:
- Proof of Income Required – Since approval is based on your ability to repay rather than your credit score, expect to provide extensive proof of your current income. Most recent pay stubs, bank account statements showing recurring income deposits, and potentially past tax returns if self-employed are commonly requested.
- Finance Manager Determines Terms – With your documents showing typical earnings, a finance manager will assess them to determine the loan amount, down payment, interest rate, and repayment terms you qualify for based on monthly free cash flow.
- Choose a Car Aligned to Terms – Only after the finance manager establishes these numbers will you be able to peruse the dealership’s inventory to choose a vehicle that falls within the approved financing terms instead of picking any car you want first.
- On-Site Loan Servicing – These dealerships keep the loans on their own books rather than selling them to external lenders. That means you make regular loan payments at the dealership site, usually bi-weekly or weekly. Cash or certified checks are commonly required.
While the approval process places more weight on income reliability rather than credit score, terms still vary person-to-person based on earning levels and existing debt obligations. The entire process occurs in-house through the dealership itself, from approval to ongoing loan management.
Common Questions About “Your Job Is Your Credit” Dealerships
We understand this unique dealership model may be new to some customers. Here are answers to some of the most frequently asked questions to help you understand the value we provide those with past credit challenges:
- Are the vehicles more expensive than traditional dealers? While inventory pricing can vary, we price our vehicles competitively and focus on overall value. What you may pay upfront is often offset by flexible approval and monthly payments tailored to your budget.
- Is a large down payment required? We customize down payment size to each customer based on the vehicle chosen and loan amount qualified for – so you know exactly what you need before you drive off the lot in your new ride.
- Are the interest rates sky-high? Rates are aligned to the lending risk – but our team works for you to offer the lowest rates possible given your unique financial situation. Getting you affordable transportation is our priority!
- Can loans still be obtained if employed part-time? Absolutely! We factor all income sources and adjust loan amounts accordingly if full-time employment is not feasible. We understand unique personal circumstances.
- What if I have an urgent transportation need? We pride ourselves on our ability to fast-track the approval and servicing of loans. Depending on your situation, we can often get you driving again same day!
Are Your Job Is Your Credit Dealerships Right For You?
If you need a reliable vehicle but have struggled to secure financing through traditional lenders and dealerships due to past credit mistakes, your job is your credit car dealerships may be a viable option.
By shifting the approval focus to your current ability to make regular payments rather than your credit score, those with damaged credit or no established credit have an alternative path to get back on the road.
Ready to learn more? Set up a consultation here at Frank’s Auto Credit. The simple approval process, flexible inventory tailored to personalized loan terms, and family-oriented customer service provide a stress-free avenue to resolve your transportation needs.
For those with past credit difficulties in the Greater Hartford, CT area specifically, we suggest contacting Frank’s Auto Credit to explore how their customizable buy here, pay here program can help you get approved and back on the road quickly. Reach out online or by calling (860) 649-3000 to learn more – no obligation required!