Auto Credit Express Blog

The Automotive and Financial Information Source for People with Special Credit Needs.

We can help you get easy auto financing or a cheap car loan in minutes!

Prefer to apply over the phone? Call us now to get started.

(855) 439-0814
Car

No Credit Auto Loans with Disability Income

Credit challenged people relying on disability income will have a harder time qualifying for no credit auto loans
No Credit Auto Loans with Disability Income
Where to look

Applicants with bad credit receiving disability income often find it difficult qualifying for horrible credit auto loans.

We have come across this issue quite a few times in the twenty years we’ve been in bad credit car sales here at Auto Credit Express. It’s also one reason we built our website – so applicants could understand why this is the case as well as research other topics such as certified used cars and loans during bankruptcy as well as today’s subject, qualifying for a problem credit auto loan with disability income.

Disability income

Even with really good credit it’s not always easy getting approved for a vehicle loan if some or all of your income is from disability or SSI payments. It’s even more difficult if you’re applying for a bad credit auto loan.

The reason is that neither SSI nor disability income can be garnished.

Because of this, if someone with either type of income has a car repossessed, the lender can’t seize that income in order to pay off the loan balance.

Knowing this, lenders are extremely cautious when someone that has a history of bad credit and either type of income applies for a car loan. Even so, there are at least two situations where a typical bad credit lender might consider such an applicant:

•    If that person can show additional income sources that can be garnished, such as W-2 wages from a job (the longer the job time and higher the income, the better the chances).
•    If the applicant demonstrates long-term residence stability and “situational” as opposed to “habitual” bad credit (current credit problems stem from a single cause, such as a medical issue or job loss versus nothing but bad credit in the past) it will also improve the chances for an approval.

When claiming either disability or SSI income, the lender will require proof. In most cases, you’ll need to provide a copy of the original award letter showing the payment amount and duration. You also may be required to contribute other supporting documentation, such as bank statements, to demonstrate that these payments are received on a regular basis.

The Bottom Line

Disability and SSI income can be issues with any auto loan, but are an even bigger problem if you have poor credit. To maximize your chances, be sure to bring all documentation with you on your first dealer visit.

To improve your chances further, Auto Credit Express specializes in matching applicants with bad auto credit to dealers that can offer them their best chance at getting approved for a bad credit car.

So if you’re ready to take that first step in improving your car credit, you can begin now by filling out our online car loans bad credit application.

This entry was posted in Auto Loans, Bad Credit and tagged , , . Bookmark the permalink.
Auto Credit Express and the ACE logo are registered trademarks. The contents of all material available on this web site are copyrighted unless otherwise indicated. Content may not be reproduced, downloaded, disseminated, or transferred, in any form or by any means, except with the prior written agreement of the ACE Group. 3271 Five Points Drive, Suite 200 - Auburn Hills, MI 48326.