credit risk?

[leach]

Does the kind of job one have plays a role in getting credit?

I know if one works part-time for a few hours a week ( and that is the only job they have ), I am sure it can be tough to be approved for a loan but what about if one works full-time, makes a decent salary even though the overall nature of the business itself is in flux?

Reason I ask this, my co-worker ( who works in radio ) tried to apply for a car loan. Even though he got the loan a few weeks later he did received a letter in the mail from one of the places the car dealership tried to get the loan through. Being curious, he called up the bank who turned him down and asked the reasoning behind their decision. He claims they said that "his job is not stable enough for them to approve the loan". Odd considering he has worked for the same station for seven years.

Hmmmmm, wonder what kind a job is "stable" nowadays? While it is true that bradcasting has lost many jobs over the years but so have many other places too.
Factories have layed off thousands over the years, retail stores have closed, never mind the "dot com bust".

But this is the first time I heard of someone actually getting turned down for a loan on the basis of his/her job, other than the income part of it. Heck, when my wife worked as an assistant manager for the Ames discount chain back in the 90's, she was still able to get a car loan even though everyone knew at the time the chain was having serious money woes and could be out of business at any time ( which did happen a few years back ).

 

[gr8oldies]

With more and more people self-employed, I don't understand the whole idea that lenders and others have the there are such things as safe, secure, lifetime jobs. Seems like the only security is whatever security you can provide for yourself.







Does the kind of job one have plays a role in getting
> credit?
>
> I know if one works part-time for a few hours a week ( and
> that is the only job they have ), I am sure it can be tough
> to be approved for a loan but what about if one works
> full-time, makes a decent salary even though the overall
> nature of the business itself is in flux?
>
> Reason I ask this, my co-worker ( who works in radio ) tried
> to apply for a car loan. Even though he got the loan a few
> weeks later he did received a letter in the mail from one of
> the places the car dealership tried to get the loan through.
> Being curious, he called up the bank who turned him down and
> asked the reasoning behind their decision. He claims they
> said that "his job is not stable enough for them to approve
> the loan". Odd considering he has worked for the same
> station for seven years.
>
> Hmmmmm, wonder what kind a job is "stable" nowadays? While
> it is true that bradcasting has lost many jobs over the
> years but so have many other places too.
> Factories have layed off thousands over the years, retail
> stores have closed, never mind the "dot com bust".
>
> But this is the first time I heard of someone actually
> getting turned down for a loan on the basis of his/her job,
> other than the income part of it. Heck, when my wife worked
> as an assistant manager for the Ames discount chain back in
> the 90's, she was still able to get a car loan even though
> everyone knew at the time the chain was having serious money
> woes and could be out of business at any time ( which did
> happen a few years back ).
>
<P ID="signature">______________
"You can't say 'moron' on the radio, you can only say 'moron' on television"...FCC official on an episode of "The Fairly Oddparents" which my son watches</P>

 

[JerryStevens]

"Does the kind of job one have plays a role in getting credit?

I know if one works part-time for a few hours a week ( and that is the only job they have ), I am sure it can be tough to be approved for a loan but what about if one works full-time, makes a decent salary even though the overall nature of the business itself is in flux?

Reason I ask this, my co-worker ( who works in radio ) tried to apply for a car loan. Even though he got the loan a few weeks later he did received a letter in the mail from one of the places the car dealership tried to get the loan through. Being curious, he called up the bank who turned him down and asked the reasoning behind their decision. He claims they said that "his job is not stable enough for them to approve the loan". Odd considering he has worked for the same station for seven years."

Something is wrong with this picture. Even the self-employed can get credit with a good two-year earning history. I did work with a guy in radio who had trouble getting his mortgage loan closed because he's in sales and his income fluctuates. I asked him if he thought that all commissioned sales people rent. Of course not. He didn't take my advice to blow off this lender and go find another one. He didn't because he thought he could work through it fairly fast. He did work through it but it took a long time. I wouldn't have put up with it.

If your friend has his facts straight, and has otherwise good credit, he shouldn't have any trouble buying a car or getting a home mortgage for that matter.

You did say, however, that he applied for a loan through the dealer. Is he what dealers call a "subprime" borrower. In other words, does he have a poor credit history because he doesn't always pay his bills in a timely manner? He can get a loan. The problem is that he can get his "head taken off" a quaint term some car salespeople use for people who wildly overpay, either on the car price or on the loan. Here's a couple of sites I'd suggest he read: How To Avoid Car Buying Scams. This site is pretty much a sales pitch to buy the book, but their is a lot of good free information on the website which is free.

Also, check Edmunds.com's Tips For Subprime borrowers.