Presented by Paystrubmakr.com By John Wolf and Tom Cullen CPA
If you have a low credit score, it will be indispensable to show income proof to get approved for your new car purchase loan.
Why will you need proof of income?
Car dealers have a standard procedure for checking the people asking for a loan to pay for the car they want. It is essential when the possible buyer has a low credit rating.
They must ensure that the buyer has enough income free for the car payments after the cost of living, so they will not default on the monthly payment.
A Steady job can get you “APPROVED” although your credit score is low.
A monthly income of $1500 to $2000 before taxes will be enough for a car loan.
What will you be required when you ask for a car loan?
A pay stub from your workplace will help you prove your income. That is how you will get the proper pay stub.
Different income sources will require additional documents:
Part-time or salary employees
The best will be to present the pay stubs for the last three months.
A pay stub from one or more workplaces will do it for your loan.
Contractors, freelancers, and other self-employed people can bring their tax return copies from the IRS.
Again you can not present a pay stub, but the tax return for the last two years will do the magic. The lander will be able to take it as good and valid proof.
Fixed and steady income
You must show all the relative documents if your income comes from government assistance.
If your income is low, you may need a co-signer that has good credit.
If you work part-time in a workplace and do gig jobs online or take some time to work with your music band, find the documents showing it.
You will have to share the following employment information.
You need solid information about your job to get approved for a loan.
Contact information of your workplace
The lender could ask you about your history as an employee.