07-20-2010 02:49 PM
Is this possible? My situation is a little unique in that I don't have current proof of income(being self employed). My soon to be wife had an ex totally destory her credit so she cannot co-sign for me, well I suppose she could but, I doubt it would do any good. We have a 10+k a month income with very little outstanding debt. My credit scores are very low(im told its mostly due to lack of credit) at 650-660 FICO. The credit union said they have no problem writing me a car loan but, need 3 years of past w2's proving income.
Is there anyway around this issue? Will the dealerships require proof of income or will they let it slide if I can show bank statements? Is there anyway that I can secure a car loan?
07-20-2010 04:05 PM
It is unique because first of all CU must not know that you are self employed. Otherwise, they wouldn't have asked you for paystubs, they would have asked for whatever legal tax documents self employed people have. You must prove income for a loan or pay cash. Overall, you have to be honest with the bank if you want to borrow money. Provide what you can, but they will not work with you if you don't provide accurate and honest information to the best of your knowledge.
Just an idea- maybe your wife can apply for the loan with you as the co-signer. Maybe her proof of income combined with your score may help secure a loan.
07-20-2010 05:25 PM
Assuming your tax returns accurately reflect your income, why not offer them?
07-20-2010 11:07 PM
As far as the wife co-signing I don't know if her history with her ex will help me or hurt me. I didn't think about the tax returns that's an idea. They didn't ask for them though. They said they wanted w2's and I asked "is there any other way?" and the woman said no there wasn't. I just don't want a crazy intrest rate. Yes i realze my score is really low right now TU-666 EQ- 658 but, it is going up about 7pts a month and will only increase now that I'm working on it.
07-21-2010 04:00 AM
You need to point out to the lady that as a self-employed person W2s don't exist. You may get 1099 forms but not reliably, tax returns represent a level of proof.
07-21-2010 10:44 PM
State Farm Bank did not ask me for proof of income even though I had it. I got approved for 3.99% for 60 months. My transunion fico was 734. Very easy to work with. They have different credit tiers.
07-25-2012 07:31 AM - edited 07-25-2012 07:32 AM
chemdris, have you purchased or leased a car before? If it's not your first one, maybe that's the reason why they didn't need proof of income?
07-25-2012 08:00 AM
I believe it would also depand on your score as well. We just bought our car 3 weeks ago (brand new) and finance through Mercedes Finance without any proof of income, they only pull transunion and not sure is fico or auto enhance score, but our score was 825 for TU.
07-25-2012 02:47 PM
When I was talking to CUs yesterday, each gave me a list of things they would need (copy of pay stubs, current loan info, ID and registration). I know that your situation is different, but can past year's W2s be used instead of paystubs?
As for the lack of proof of income, I had that for many years when I was self-employed. The banks that requested it just went with what I told them or I provided tax statements for the previous years and let them know that they didn't represent my true income. That was kind of obvious when they saw that I was paying $5k-$10k per month in personal expenses. Be honest with them and see what happens.
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