Hi everyone, My question is: Do I need to show proof of income to either get credit or a loan and/or co-sign? What type of proof of income do they normally ask for? The reason why I ask is my husband is the only bread winner in the home now. I've been unemployed about 3yrs now. Even though he makes good money he has bad credit score, in the 500s. I don't have a perfect score either, 618. We've been trying to clean up our reports. Right now he really needs a new car for work since he commutes a lot. His car is pretty old. We're thinking of applying for a car loan with his car as a trade in. What are our chances of getting a good loan with low mthly payments? Any advice, suggestions etcâ?¦, would greatly be appreciated! Thanks tealeaf
Your score will probably yield a better rate than his. HOWEVER a car should be fairly easy to get for either of you and INTEREST rates should NOT determine who's name the loan is in. In other words don't put his car in your name simply for higher interest rate reasons...it may come back to bite you. In reality your interest rates now will probably not be THAT great either, but in short time you can refinance your loan, or get a loan that (with timely payments and good payment history) will go down over time. There are several people here who, after even 1 year of good payments and simultaneously cleaning up their credit report, have re-financed for GREAT rates. Therefore they are only paying the high interest rates for the first year. You do not have to get a loan from the dealer but if you are shopping around, do it in about a 2-week time span so you can get the inquiries "coded" as one hard inquiry. Make sure when they pull your credit, they specify it is for an auto loan app (sometimes they don't). I am SURE there are a lot of knowledgeable recent car purchasers with scores near yours that can give you much better advice than I can, and maybe even give you clues to your probable rates. But to "cheer you up" I think you are better off than you believe you are in right now. -Peace, Dave
Sorry, forgot about the proof of income question. Yes, for a car loan they will probably require you to provide a recent pay stub from a payrole or business check. You could also provide your last year W2 or income tax filing as proof. They do not all ask for proof, but I would definitely be prepared to face that and back up your response to the income portion in any application you submit. -Peace, Dave
Thanks Dave! You've helped answered a lot of my questions and have eased my worries. We're going to start looking next month when the end of the year deals are happening. tealeaf
