CAR LOAN?... WHAT'S YOUR EMPLOYMENT STATUS?
Employment Status
Employment Status needs to be looked at in two parts.
First there is the type of employment, i.e. Are you Full Time Employed, Part Time Employed, Casual, On a Pension?
The second area looked at with employment is the length or duration of employment, and it's consistency.
Have you been employed continuously within the same industry, but with different employers?
Chef's are a good general example of this. They tend to be always employed, often casually, but move from restraunt to restraunt, cafe to cafe, oftn to better their pay.
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Full Time Employment means that you work around 38 hours a week, you receive Superanuation, holiday pay, sick pay from your employer.
Oten people say they are 'Full Time' even though they are really Casual, because they think they work 'Full Time' hours, so they are 'Full Time' employed, or they are trying to make the application look better, thinking that they will have trouble getting a loan if they say they are casual. Read more...
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Many people are 'Part Time', and many have two part time jobs. With Part Time Employment, you have the same pay structure, you just work less hours. Read more...
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Regardless of the number of hours you work a week, You Are classified as 'Casual' if you do NOT receive, Sick Pay, Holiday Pay from your Employer. Read more...
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You are classed as 'Unemployed' if you do not get an income, or the income you are getting is from 'Centrelink' as unemployment benefits. Read more...
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Self Employed people have an ABN, or are employed by a company where they are a Director.
Tradespeople often say they are 'Full Time' but they are self employed because they are invoiced by the business they are 'contracting' to, with an ABN. Read more... -
People on a Pension, get their income from the Government department applicable to the type of pension they are on. It could be a 'Sole Supporting Parent Pension', a 'Disability Pension', A 'War Veterans Pension' etc. Read more...
Read about the different Loan Types, Loans available for your Employment Status, and Loans available depending on your Credit Status.
Due to the recent Global Financial Credit Crisis, many Lenders have become more 'conservative' in their lending guidelines, meaning that they have tightened up on lending to people with poor credit histories, especially people who have multiple defaults with lending institutions, like Banks... » Read About Credit Status here
Guidelines around Employment Status, and continuity of employment, has also been tightened, and most 'mainstream' Lenders will not lend their money while you are on a 'probationary' period... » See Guidlines here
Take time to read, and become better informed before you apply, and when you do make a personal loan application, make sure that you complete all the questions truthfully, and in as much detail as possible... » Read About the 6 'C' of Credit Assessment here
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