Easy Car Financing with “Your Job is Your Credit” Explained

While you may think that having bad or no credit can make you ineligible for a car loan, think again. “Your job is your credit” car dealerships offer income-based auto loans that have nothing to do with your credit score. So, those who have poor credit scores can still purchase the car of their dreams, without their credit impacting the process. Keep reading to learn more about these dealerships and how they work. 

What Does “Your Job Is Your Credit” Mean?

You may have heard of buy-here, pay-here dealerships like Hawthorne Auto Square. Many dealers also advertise themselves as “your job is your credit”, or “no credit, no problem” car dealerships. Both terms mean you can qualify for a car loan with bad or no credit.

The requirements of each dealership vary. However, they often base approval on whether you earn a sufficient income and can make the down payment. When you visit these dealerships, you’ll need proof of income — it can be a pay stub showing year-to-date earnings as an employee, recent tax returns, bank statements, or a combination.

How Do “Your Job Is Your Credit” Dealerships Differ from Traditional Ones?

Traditional car dealerships often base your approval for a vehicle off of your credit score. Lenders typically look for those with a score of 661 or over. If you do not have adequate credit, they will likely deny you a loan.

Your job is your credit dealerships, on the other hand, do not perform a credit check and will approve you based on your income. As long as you have a qualifying income and a down payment, you will likely be approved for a loan.  

These dealerships often reverse the car-buying process to help you find a car within your budget. Instead of picking out a car and then applying for financing, they will go determine the amount of financing you’re eligible for, and then show you cars within your budget.

Advantages of Buying from Our Dealership

Buying from a “your job is your credit” car dealership comes with many advantages, including:

• No credit check: Whether you have a low credit score, a poor credit history, or no credit, the dealership doesn’t care. Their standards are less strict than those of a bank, credit union, or subprime lender. It may be easier for you to get back on the road. But while your credit score isn’t a concern, ask the dealer if they report on-time payments to credit bureaus; this way, your timeliness can help improve your credit score. 
• You can have multiple jobs: A subprime lender may require that you have only one source of income. However, an in-house financing dealership is fine with you having three jobs, as long as you meet their minimum payment requirement. The down payment is usually based on the cost of the vehicle so it can vary from one model to another or from dealership to dealership.
• Determine lending first: Instead of choosing a car and then working out a financing plan, a “your job is your credit” car dealership figures out the loan terms first. The finance manager will help with this process. You’ll then select a car from the dealer’s lot that fits the terms so it will work with your budget.

Disadvantages of Buying from “Your Job Is Your Credit” Dealerships

There are some things to consider when buying from a your job is your credit car dealership, including:

• The dealer may require a minimum down payment, which means you must have the cash upfront (often bi-weekly or weekly in person)
• Interest rates on the loan may be relatively high
• Your loan payment will not improve your credit score if it’s not reported to the credit bureaus
• You will not receive a substantial car loan if you’re a low-income earner, as you’re limited to vehicles that align with your current income

How Qualifying and Financing Works at These Dealerships

When you visit a alternative credit car dealership, you’ll often be asked for the following to verify the loan amount you’re eligible for:

• Proof of income
• A down payment
• Proof of residence
• Driver’s license

The dealer will use this information to verify your income and determine the loan amount, interest rate, and terms you qualify for.

With your loan amount determined, you can then work with the dealer to find the car that fits your budget. Once you’ve selected a vehicle, they will use the selling price and pre-approval terms to calculate the down and monthly payment amounts.

The dealer will then send your information to the lender for final approval. The lender may ask for additional pay stubs or employment verification to complete your car financing. Once you receive final approval, you’ll complete the purchase paperwork and be ready to drive off in your new car.

Visit Hawthorne Auto for 100% Approval Car Loans

If you’re looking for a guaranteed approval car dealership in Southern California, visit us at Hawthorne Auto Square. Whether you have no credit or bad credit, you can find a financing program that fits your needs at our “we finance everyone” dealership. Our dealership offers in-house financing and uses a convenient buy here, pay here model. We provide options such as taking six months to build your down payment while you drive the car, truck, or SUV of your choice. You don’t even have to have a job to be approved! We accept any form of income, including SSI, disability, or government assistance. 

These competitive financing options mean you can select from hundreds of vehicle makes and models on our Los Angeles lot. These cars, trucks, vans, and SUVs are low-mileage and high quality. Each vehicle is carefully inspected before being prepared for sale and comes with30-day, 1000 mile warranty that includes service and maintenance. Payments are accepted online or by phone, so you don’t have to travel to our dealership every time.

Get pre-approved for a used car loan today. To learn more or view our current inventory in Los Angeles, visit Hawthorne Auto Square or call (855) 785-1554 to speak with a representative.

Frequently Asked Questions

Who should consider “Your Job Is Your Credit” dealerships?

“Your job is your credit” car dealerships are ideal for those with bad or no credit. These car dealerships work with those who have low credit scores to create a financing plan that aligns with their employment income. These dealerships also often offer first-time car buyer programs for those who have not yet built their credit.

Can I trade in my current car at a “Your Job Is Your Credit” dealership?

Most “your job is your credit” dealerships allow you to trade-in your current car. This amount will be used against the sale price of your new car to reduce your monthly payments.

What happens if I miss a payment or default on my loan from one of these dealerships?

If you miss a payment or default on your loan from one of these dealerships, you will often be charged late payments or have your car repossessed.