Consumers who receive disability or SSI income could find that this complicates matters when attempting to qualify for a bad credit auto loan.
We are Your Local Car Loan Specialist
You may be wondering if you can find car dealerships that accept SSI payments that are making up all or a portion of your income. We know, because for over twelve years AutoNet Financial has been the lead specialist for thousands of consumers – working with good and bad credit customers while, respectively, helping them find the right dealer and assisting them in reestablishing their car credit.
In fact, after seeing the embarrassment and disappointment that customers with bad credit, in particular, often face, we created a web site that features a bad credit auto loan application. We then match bad credit applicants with dealerships in their area that specialize in customer credit issues.
The alternative to your local car loan specialist means buying a vehicle from a tote the note dealer. Most of these dealers, unfortunately don’t report payments to the credit bureaus. In the end, this means they don’t reestablish your car credit – not to mention the fact that a higher percentage of these loans result in repossession.
But if all or a portion of your income comes from disability or SSI payments, will your local car loan specialist even consider your application? The answer is, much of it has to do with your credit score.
Disability Income and SSI Income
If your credit score is 640 or above, it is more difficult getting approved at your local car loan specialist if all or some your income comes from disability or SSI payments. It’s even harder if you’re trying to get approved for a bad credit auto loan. Here’s why: disability and SSI income cannot be garnished. This means that if a borrower with SSI or disability income has a vehicle repossessed, the lender will be unable to garnish that income in order to pay off a deficiency balance.
In this case, lenders working with your local car loan specialist are especially cautious when considering applicants with either type of income. Even so, there are a few situations where even a typical bad credit lender might consider this type of income:
- If there is other income, in addition to disability and SSI, that could be garnished. An example would be W-2 wage income (the longer the job time and the higher this additional income is, the better chance of getting approved).
- Other factors including long-term residence stability and, if you have bad credit, if your bad credit is “situational” instead of “habitual” (current bad credit stems from a single cause, such as a job loss, as opposed to a long history of late payments).
Finally, if you are claiming either disability or SSI income, you need to provide proof to your bad credit car loan specialist. In this case, that means you will need to provide the original award letter stipulating the amount and duration of the support payments, as well as any additional proof, such as bank statements, that those payments are ongoing.
As we see it
SSI and disability income can be a problem with any auto loan, but both can be an even bigger issue if you’re hoping to get auto financing approval. To give yourself a better chance, be sure to have the proper documentation with you when you visit the dealer for the first time.
At Auto Net Financial, we specialize in placing customers with bad credit with dealers that can help them. Our affiliate dealers are knowledgeable and work with a broad spectrum of lenders to ensure you have your best chance at getting approved for a car loan.
So if you are serious about getting your car credit back on track, you can begin a new chapter in your life by filling out our bad credit car loan application now.