Getting a car loan with poor credit or no credit is tough, but when a potential buyer is also self-employed, it presents a whole new set of challenges. Fortunately, Approved Loan Store is here to help. If you are self-employed and plan on buying a new or used vehicle soon, read on ahead and learn how you can improve your chances of getting approved.
First, you need to be able to prove your income. The most effective way to prove income if you are self-employed is to bring in three years of professionally prepared tax returns. Remember that the majority of auto loan programs have a minimum monthly income requirement of $1,800, or $21,600 per year, so check to see that you meet those requirements.
Second, it might be smart to bring in documents showing approximate monthly expenses. If the lender believes that your monthly expenses are too much to take on a car payment as well, they will not approve the loan. You want to show them that you can keep up with your car payment and still maintain your current monthly bills.
Finally, going back to the first point, your income needs to be reflected in your tax returns. If you are not reporting some of your income on your tax return, then you don’t get to claim that income while applying for an auto loan. There is no guarantee that additional paperwork will help your case if the income listed on your tax return is below the minimum, even if you bring bank statements.
Are any of these requirements a problem? If so, it would be smart to either walk into the dealership with a co-signer or bring a down payment. Otherwise, you have a good chance of qualifying for an auto loan program with Approved Loan Store. Every day, we work with customers with no credit, challenged credit, and a wide range of factors keeping them from getting a car, including self-employment.
Summer time is here! Are you finally ready to get into a great new or used car? Approved Loan Store wants to help YOU! Good credit, bad credit, no credit, we will work with you to get a car you want at terms you can afford! Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!
Image courtesy of renjith krishnan / FreeDigitalPhotos.net