Temporary Worker Auto Loans
When you live in Canada, it is quite common to be a temporary worker. For instance, you are a student in a university or a parent who has to take care of your child. You can also be working in an industry whose demand for labor fluctuates regularly.
For a lot of people, being a temporary worker is ideal, as it fits into their lifestyle perfectly. However, when it comes to getting an auto loan from a financial institution, it is extremely difficult. A large number of lenders associate temporary workers with high risk, as irregular income can make it challenging to repay credit on time.
Fortunately, there are several techniques that make it easier to obtain an auto loan. Here are four tips which increase the chances of getting approved for a car loan:
Ask your employer for a letter
A good way to show lenders that they can trust to give you credit is to show them that you will be working in your company for a specific time frame. When the employer assures them, it becomes easier to get an auto loan, as they understand you will receive work.
Avoid applying for multiple loans
As you are aware that lenders may not accept your loan application, you tend to apply for numerous loans, to maximize the chances of getting one. While this may seem like a good idea, in theory, it doesn’t work as expected. Lenders have the opportunity to take a look at all your credit accounts. If it shows up that you applied for multiple loans, they will assume that you are not a responsible borrower.
Get a guarantor
An easy way to get approved for an auto loan from a lender is to ask your friend or family member to be a guarantor. In other words, the third-party assures the financial institution, that he/she will be responsible if you are unable to repay the auto loan. Make sure the guarantor has a good credit score, to improve your chances.
Also, you can make a larger downpayment, which brings down the amount you need to borrow. These are the three tips you need to follow to get an auto loan, as a temporary worker in Canada!