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Even if you have good credit, it can be difficult getting approved for a low income car loan if all or just some of your income comes from disability or Social Security payments. It's even harder if you have bad credit.

The reason is because Disability and Social Security income cannot be garnished. Meaning that, if a borrower who receives disability or Social Security income defaults on his car loan, the lender cannot go after that particular income source in order to pay off a deficiency loan balance.

Because of this, lenders are cautious when considering applicants with either disability or Social Security income.

However, there are at least two situations in which a typical bad credit lender might consider an applicant with this these sources of income:

If the applicant has other income sources that could be garnished if necessary, such as income from a job. The longer the time on job is, and the higher this additional income is, the better chance you have of getting approved.

Long-term residence stability and "situational" bad credit (such as a medical issue) as opposed to "habitual" bad credit (such as a history of late payments), will also increase your chances of an approval.

Social Security and disability income can be a problem with any auto loan, but can be an even larger issue if you have bad credit. To improve your chances for an approval, apply online with Auto Credit Express where we specialize in helping people with bad credit find a dealer that can give them their best chance at an approval for a new or used car loan.