Getting approved for a car loan can be a difficult process if you have bad credit. It can even be more complicated if you receive disability income. However, it is not impossible.

Many people on disability who have bad credit have successfully financed a vehicle. You can potentially do the same if you meet certain requirements and work with a car dealership that is willing to assist subprime car buyers.

Initial Requirements

Car Keys

Before you consider financing a vehicle on disability, you should know the initial requirements. To start, you need to have proof of being on disability for at least six months before applying for a car loan. Additionally, you must be able to show that you will continue to receive this income for the full loan term.

It is also a common requirement that you need to have another source of income that can be garnished. However, there are other options if you only receive money from disability.

A Garnishable Income or Co-Signer

Disability income cannot be garnished. This means that subprime lenders typically will require a second regular income source that they can collect from in the event you default on the loan. In this instance, these second incomes are typically part-time jobs that individuals receive a regular, moderate amount of money from each month. Although you may not have to earn much, you have to prove this income with paycheck stubs.


If you do not have any garnishable income, the next step would be to find a co-signer. A co-signer is typically someone close to you that agrees to take financial responsibility if you miss payments or default on the loan. While a co-signer will make it easier to get approved for a car loan, he or she risks their credit rating in the process.

Buy Here Pay Here Dealerships

Even if you do not have a garnishable income or co-signer, you may still be able to get approved through a buy here pay here dealership. Buy here pay here dealerships typically work with individuals that have any source of regular income. You will need to have a down payment, proof of residence, proof of insurance and a valid driver's license.

Getting approved at one of these dealerships is easier, but there are disadvantages. You may have to pay quite a bit more than a vehicle is worth over the course of the loan. Additionally, you may have to finance an older vehicle and with higher mileage than what you had initially wanted.

However, the benefits of these dealers may ultimately outweigh the disadvantages. They can potentially get you in a vehicle and many of them report your loan and payments to the credit bureaus. This means you can improve your credit with each timely payment.

Get Back on the Road Today

Regardless of your source of income or credit situation, you can begin the process of getting back on the road as quickly as possible by applying with Auto Credit Express. We have assisted thousands of people with bad credit in the car buying process. Just fill out our quick online application and one of our representatives will be in touch with you soon.