Can you use NYS Department of Labor unemployment benefits as proof of income for a car loan?
I've been collecting unemployment for about 6 weeks now and my car just died on me. I need to get another vehicle to keep looking for work but I'm not sure if dealerships or banks will accept my weekly unemployment payments as proof of income. Has anyone here successfully used their NYS Department of Labor benefits to qualify for a car loan? My weekly benefit amount is $420 so that's about $1,680 per month. I have all my payment history from my online account but don't know if that's enough documentation.
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Layla Sanders
Yes, unemployment benefits can count as income for auto loans, but it depends on the lender. You'll need your benefit determination letter from NYS Department of Labor showing your weekly benefit amount and duration. Most lenders want to see at least 3 months of consistent payments. Print out your payment history from your my.ny.gov account - that should work as documentation.
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Anna Stewart
•Thanks! I didn't know about the determination letter. Where do I find that in my account?
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Morgan Washington
i got a car loan last year while on unemployment but the interest rate was pretty high, like 12%. they made me put down a bigger down payment too. but it worked out fine
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Kaylee Cook
The challenge is that unemployment is temporary income, so lenders see it as risky. Some won't touch it at all. Credit unions tend to be more flexible than banks or dealership financing. I'd suggest calling around and being upfront about your situation before wasting time with applications.
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Oliver Alexander
•This is good advice. Also worth mentioning that you'll need to show you're actively job searching since that's required to keep getting benefits. Some lenders ask about your employment prospects.
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Lara Woods
UGH the whole system is so frustrating! I tried to get a loan while on UI and they wanted like 6 months of bank statements, pay stubs from before I got laid off, AND a co-signer. It's like they want to make it impossible for people who actually need help.
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Adrian Hughes
•I feel you on this. Have you considered looking at used car lots that do in-house financing? They're usually more willing to work with unemployment income, though you gotta watch out for predatory terms.
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Layla Sanders
One thing to keep in mind - make sure you're reporting any car payments correctly if you do get approved. NYS Department of Labor doesn't count loan payments as income, but if you're doing any side work to make payments, that needs to be reported on your weekly claims.
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Molly Chambers
When I was dealing with getting my claim sorted out, I had trouble reaching NYS Department of Labor agents about documentation questions. Someone here recommended using Claimyr (claimyr.com) to get through their phone system faster. They have a demo video that shows how it works (https://youtu.be/qyftW-mnTNI). Might be helpful if you need to talk to someone about getting the right paperwork for your loan application.
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Anna Stewart
•Interesting, I'll check that out. I've been trying to call about my benefit letter but keep getting the busy signal.
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Morgan Washington
oh and make sure your unemployment doesn't run out before the loan term ends. some lenders want to know how many weeks you have left
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