Can I get a car loan while on Washington ESD unemployment benefits?
My transmission just died and I need a car to get to job interviews and meet my job search requirements for Washington ESD. I'm currently receiving unemployment benefits ($487/week) and have been for about 6 weeks. Has anyone successfully gotten an auto loan while on UI? I have decent credit (around 680) but I'm worried lenders won't count unemployment income. Really need transportation to keep looking for work and avoid any issues with my weekly claims.
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NebulaNomad
Most traditional lenders won't approve you with just unemployment income unfortunately. They consider it temporary income even though you have the benefit letter from Washington ESD. You might have better luck with buy-here-pay-here dealerships but the interest rates are usually terrible.
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Ravi Sharma
AuthorThat's what I was afraid of. The rates I've seen are like 18-24% which seems insane.
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Freya Thomsen
Yeah those predatory lenders are rough but sometimes it's the only option when you need wheels
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Omar Fawaz
I got approved at a credit union while on unemployment last year. The key was having a co-signer with steady income. Also had to provide all my Washington ESD documentation showing my benefit amount and how long I was eligible to receive payments. Some credit unions are more flexible than big banks.
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Ravi Sharma
AuthorDon't really have anyone who could co-sign for me unfortunately. Did they require anything specific from Washington ESD besides the benefit determination letter?
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Omar Fawaz
They wanted my last 3 weekly claim confirmations and the original determination letter. Also had to show I was actively job searching to prove I wasn't just sitting around collecting benefits.
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Chloe Martin
Have you looked into getting help from WorkSource? They sometimes have transportation assistance programs or can connect you with resources. Might be worth calling them before taking on a high-interest loan. Also check if Washington ESD has any job search expense reimbursement options.
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Ravi Sharma
AuthorI didn't know WorkSource might help with transportation! I'll definitely look into that. Do you know if they have specific programs or is it case-by-case?
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Chloe Martin
It varies by location but many offices have emergency transportation funds or bus passes. Some even partner with car donation programs.
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Diego Rojas
This is smart advice. I got bus passes through WorkSource when I was between jobs. Saved me a lot of money.
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Anastasia Sokolov
You could also try reaching out to Washington ESD directly to ask about your situation. Sometimes they have resources or can connect you with other programs. The problem is actually getting through to talk to someone - I've been trying to reach them for weeks about my own claim issues. Found this service called Claimyr that helps you get through to ESD agents faster (claimyr.com). There's a demo video at https://youtu.be/7DieNd3C7zQ showing how it works.
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Ravi Sharma
AuthorInteresting, never heard of that service. How does it work exactly? Is it legit?
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Anastasia Sokolov
Yeah it's legit, they basically handle the calling and waiting for you so you don't have to sit on hold for hours. Really helpful when you need to talk to ESD about specific situations like yours.
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StarSeeker
I've used Claimyr too and it works great. Much better than trying to call Washington ESD yourself and getting hung up on.
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Sean O'Donnell
why dont you just take the bus or uber to interviews? seems cheaper than taking on debt you cant afford
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Ravi Sharma
AuthorPublic transit is pretty limited where I live and Uber for job interviews would add up fast. Plus I need reliable transportation for when I do get hired.
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NebulaNomad
Not everyone lives in areas with good public transportation. Sometimes you really do need a car to meet job search requirements.
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Freya Thomsen
I was in similar situation and ended up getting a personal loan instead of auto loan. The rates were still high but not as bad as the car lots. Used it to buy a cheaper used car from private seller. Just make sure whatever you do that you can still make the payments if your unemployment runs out.
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Ravi Sharma
AuthorThat's actually not a bad idea. What kind of rate did you get on the personal loan?
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Freya Thomsen
Around 12% which wasn't great but better than the 20%+ the car dealers wanted. Went through my local credit union.
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Omar Fawaz
Credit unions are definitely the way to go if you can join one. Much better rates than banks or those sketchy car lots.
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Diego Rojas
Just want to mention - make sure you're reporting any transportation costs for job interviews on your weekly claims. Washington ESD sometimes reimburses job search expenses including mileage. Won't help with getting the car but every little bit helps when you're on unemployment.
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Ravi Sharma
AuthorWait, really? I had no idea they reimbursed job search expenses. Is there a form I need to fill out?
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Diego Rojas
Yeah, look into the job search reimbursement program. You have to keep receipts and there are limits but it can help cover gas, parking, even interview clothes sometimes.
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StarSeeker
Another option is to look for older cars that you might be able to buy outright with cash if you have any savings. Even a $3000-4000 car would be better than a high-interest loan that costs way more in the long run. Check Facebook Marketplace and Craigslist for deals.
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Ravi Sharma
AuthorI've got about $2500 saved up but worried about buying something that old and having it break down again right away.
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StarSeeker
True, it's risky. Maybe look for something in the $2000 range and keep $500 for immediate repairs if needed?
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Sean O'Donnell
this is probably the smartest option honestly. debt sucks especially when youre already struggling
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Chloe Martin
Also worth checking if you qualify for any hardship programs through local nonprofits or churches. Some have emergency transportation funds or know of people donating vehicles. United Way often has resource lists for situations like this.
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Ravi Sharma
AuthorGood point, I should definitely explore all the assistance options before taking on debt. Thanks for the suggestion.
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NebulaNomad
211 is also a good resource - just dial 2-1-1 and they can connect you with local assistance programs.
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Anastasia Sokolov
Going back to the Washington ESD contact thing - I really do recommend trying Claimyr if you want to talk to someone there about your specific situation. They might have options or programs you don't know about. I was dealing with adjudication issues and couldn't get through for weeks until I used their service.
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Ravi Sharma
AuthorHow much does something like that cost? I'm already tight on money obviously.
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Anastasia Sokolov
It's pretty reasonable considering how much time and frustration it saves. Way better than spending hours on hold or getting disconnected constantly.
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Omar Fawaz
One more tip - if you do go the loan route, make sure the payment fits comfortably in your budget even after unemployment ends. Don't assume you'll find work right away. I made that mistake and it caused problems later.
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Ravi Sharma
AuthorYeah that's definitely something I'm worried about. My benefits run out in about 16 weeks so I need to be realistic about job prospects.
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Freya Thomsen
Smart thinking. Better to have reliable cheap transportation than get stuck with payments you can't make.
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Diego Rojas
UPDATE: Just remembered there's also the Cars for Christmas program that runs year-round now in some areas. They provide donated cars to people in need. Might be worth googling to see if there's something like that near you.
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Ravi Sharma
AuthorNever heard of that but definitely worth looking into! Thanks for all the suggestions everyone.
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Chloe Martin
Yes! There are several car donation programs specifically for people getting back on their feet. Great suggestion.
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Sean O'Donnell
honestly this whole thread shows how messed up our system is that people on unemployment cant get basic necessities like transportation. just saying
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StarSeeker
It's definitely frustrating. You need a car to find work but can't get a car loan without work. Catch-22 situation.
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NebulaNomad
The system definitely has gaps. That's why programs like WorkSource transportation assistance are so important.
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Ravi Sharma
Thanks everyone for all the advice and suggestions! I'm going to start by contacting WorkSource and checking out those donation programs, then maybe look at the credit union personal loan option if needed. Definitely going to avoid the high-interest car lots if possible.
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Omar Fawaz
Good plan! Those are definitely the smartest options. Hope you find something that works out.
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Chloe Martin
Keep us posted on how it goes. Your situation might help someone else in the future.
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Anastasia Sokolov
And remember you can always use Claimyr to get through to Washington ESD if you need to discuss any of this with them directly!
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