Car Financing Advice for the Self-Employed
Increasingly, it is common for people to be self-employed. Whether you own your own small business, or work as freelancer or a consultant, you are part of the ranks of self-employed individuals that has risen in the last few years alone. The rise of the Internet has, of course, played a vital role in this process, and it looks as though the number of self-employed people in the workforce will likely only continue to grow. Car dealerships realize this fact as well, and they are more than eager to assist self-employed individuals with financing.
Just because you are self-employed doesn’t mean that you should have any more trouble than someone that is traditionally employed. The key factors that apply to someone that is traditionally employed will still apply to you as a self-employed individual. Let’s take a look at some of those key factors.
5 Key Factors for Self-Employed Car Buyers
1) Your credit score
2) Your credit history and any credit history problems
3) Length of time being self-employed
4) Being able to show and prove your earnings
5) Being able to prove that you are employed
These are the five key factors for anyone looking for any kind of loan including a car loan. Self-employment largely means being able to prove these five key points in different ways. Being able to prove how long you’ve been self employed and your earnings is critical to the process.
Of course, much of the determination as to whether or not you will receive a car loan will ride on your credit history and your credit report. This is why you should check your credit reports for errors. Whether you are traditionally employed or self employed, errors on your credit report could keep you from obtaining a loan. While car dealerships are excellent at finding ways to help people with bad credit history issues get behind the wheel, errors on your credit report could still impact the interest rate you pay.
No doubt your credit score is extremely important, but even if you have a bad credit rating, don’t give up. Many car dealerships will be more than happy to help you. In fact, you might even be able to get a zero money down loan as well. What car dealerships care the most about is your current situation and not financial details that could be years old.
|Most frequent lenders||Portion of # of loans in 2011|
|Ally Financial||6.93 percent|
|Wells Fargo||5.79 percent|
|JP Morgan Chase and C||4.75 percent|