PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Are temporary workers eligible for car loans?
I've done exclusively freelance and contract work for the last few years. Are temps like me able to get car loans?
Jim Donaher · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
They are. However, because of the nature of temporary work, these people need to work a bit harder to be approved for car loans. Because their income and employment are uncertain, they are perceived to be a greater risk.
Some concrete steps that can be taken to mitigate the perceived risk include:
- Obtaining an offer letter from an employer. An offer letter for a future permanent position is obviously best, but an offer of a long-term contract is helpful, too. The lender wants to see that you will have employment (and the income that goes with it) for the life of the loan.
- Staying with your employer. An extension of an existing contract indicates greater employment stability, even if the job has a planned end date. Lenders assume that further extensions are more likely. There’s also the possibility of an offer of permanent employment.
- Getting a cosigner. A cosigner with stable income and employment can mitigate the risk presented by a temporary worker. The cosigner must be aware that they will assume responsibility for the loan should the primary borrower be unable to make the payments.
As the U.S. economy moves toward more temporary employment, look for lenders to offer programs that are more suited to the growing population of contractors, temps, and seasonal and casual workers.
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies