Can you use Washington ESD unemployment benefits as proof of income for a car loan?

Yes, unemployment benefits can count as income for car loans! You'll need your monetary determination letter from Washington ESD that shows your weekly benefit amount. Most lenders will accept this, though they might require additional documentation like your recent benefit payment history. The key is showing consistent payments and that you're actively job searching.

I literally just went through this last month! Used my Washington ESD benefits as proof of income for a used car loan at a credit union. They accepted my benefit payment summary and wanted to see 3 months of consistent payments. Got approved but the interest rate was higher than if I had regular employment income.

Just a heads up - make sure you factor in that your unemployment benefits will eventually end. Most UI claims in Washington last up to 26 weeks unless you qualify for extensions. Lenders might ask about your job search progress and what your income plan is after benefits expire. Having a realistic timeline helps with approval.

This is exactly what I needed to see! I've been putting off car shopping because I wasn't sure if my unemployment would count. Been getting benefits for 6 weeks now but was worried about getting rejected. Did you need anything besides the monetary determination letter?

Word of warning - dealership financing might be trickier than going directly to a bank or credit union. Some dealerships have policies against unemployment income but banks are often more flexible. Shop around before you go to the lot.

be careful about taking on debt while unemployed tho... what if you dont find work before benefits run out? then ur stuck with car payments and no income

Check if Washington state has any programs to help unemployed people get transportation. I know some states have special loan programs or grants for job seekers who need cars.

Another option is looking at buy-here-pay-here lots. They're more flexible with income verification but usually have higher interest rates and older cars. Might be worth considering if traditional financing doesn't work out.

Make sure your unemployment claim is in good standing before applying. If you have any pending issues or adjudication problems, that could complicate things with lenders who verify income.

I tried this a few months ago and got rejected by three different places. Maybe my credit wasn't great but they all said unemployment income was too risky. ended up having to wait until I got a job

Have you considered a cosigner? If you have family or friends with good income and credit, that might make approval easier even with unemployment benefits as your primary income.

Document everything with Washington ESD! Keep copies of all your benefit letters, payment confirmations, and weekly claim submissions. Some lenders want to see a really detailed payment history.

What about lease vs buy? Sometimes leasing is easier to qualify for with unemployment income since the monthly payments are usually lower.

Try smaller local banks too, not just the big ones. Sometimes they're more willing to work with people in unique situations like unemployment.

Don't forget to budget for insurance! If you haven't had a car in a while, insurance costs might be higher than you expect, especially if you're financing and need full coverage.

I'm in a similar situation and have been hesitant to even try. This thread is giving me hope that it's actually possible. Thanks for asking this question!

One more tip - if you do get approved, try to keep the loan term as short as you can afford. Since unemployment is temporary, you want to minimize how long you'll be paying for the car.

Good luck with the car shopping! Having reliable transportation makes such a difference when you're job hunting. Hope you find something that works for your situation.

Keep us posted on how it goes! I'm sure other people will be in similar situations and could benefit from hearing about your experience.

Also remember that having a car might help you expand your job search area, which could lead to finding work faster. Sometimes the investment in transportation pays for itself by opening up more opportunities.