Individuals with bad credit who receive disability or SSI income could find that this complicates matters when attempting to qualify for auto loans for bad credit

In our experience

If you're sure you have bad credit you may be wondering if you still qualify for a bad credit car loan if all or a portion of your income comes from disability or SSI payments. We know, because for over two decades Auto Credit Express has been working with bad credit customers and helping them reestablish their car credit.

In fact, after seeing the embarrassment and disappointment that customers with bad credit often face, we rolled out a web site that helps educate customers. It also features a bad credit auto loan application. We then match applicants with dealerships in their area that specialize in customer credit issues.

The alternative, which means buying a vehicle from a tote the note car dealership, is another option for bad credit customers, but most of these dealers don't report payments to the credit bureaus. In the end, this means that person's car credit is not reestablished and their credit scores will not get better because of this – 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 a bad credit lender other than a buy here pay here dealer even consider your application?

SSI and disability income

Its difficult enough getting approved for a regular car loan if all or some your income comes from disability or SSI payments and it's even harder if you're trying to get approved for a bad credit auto loan. Here's why: disability and SSI income, like child support, cannot be garnished. This means that if a borrower with disability or SSI income has a vehicle repossessed, the lender will be unable to get a court order to garnish that income in order to pay off the loan balance.

In this case, lenders are especially cautious when considering bad credit applicants with either type of income. Even so, there are a few situations where a typical 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 from a job (the longer the job time and the higher this additional income is, the better chance you have of getting approved).
• Other factors that might help include long-term residence stability and if your bad credit is “situational” instead of “habitual” (where current bad credit stems from a single cause, such as a medical issue, job loss or foreclosure, as opposed to a history of often having paid your bills late).

One more important point: if you are claiming either disability or SSI income, you need proof. In this instance, that means you will need to provide the original award letter that stipulates the amount and duration of the support payments, as well as any additional proof, such as bank statements, that those payments are ongoing.

The Bottom Line

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 approved for car loans with bad credit. 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 Credit Express, 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.