10-04-2013 03:51 PM
Hello. I am a bar tender looking to purchase a preowned car, unfortunately my income cannot be verified as 95% of the money is cash tips. I have a 655 score and was sondering if anyone could point me in the right direction of any lenders who might be able to approve me. I have perfect payment hisotry for the past 4 years and am 4.5 years out of a chapter 7 bk. Looking to borrow approximately $20,000 with a 20% down payment
10-04-2013 04:30 PM
You can demonstrate income through tax returns or I've been told bank statements: those may be more applicable in your case.
I don't think you'll have an issue other than I dont know how many lenders have issues for BK's on reports, but someone will give you financing as long as you can demonstrate the ability to repay.
10-04-2013 09:17 PM - edited 10-04-2013 09:18 PM
The money is not the issue. Its the prooving it. I usually keep a balance of around 7-8000 in my checking account. Will this suffice ?
Even on tips should be reporting it as taxable income: if you paid taxes on it, you can claim it as income easily.
Otherwise people have said that in some cases you can use bank statements showing a pattern of deposits to prove income; I've never seen that personally, but tax records are the traditional method of proving income for the self-employed, it would work in this situation too easily enough.
10-05-2013 10:02 AM
As with the other posts have read, either showing bank statements of cash deposits or your tax returns with you claiming the income.
If you don't claim the income on your taxes, as a lot of bartenders and waiters do, then you wont be able to use it.
If you don't deposit your cash into a checking account, you won't be able to use bank statements. This method will also vary by lenders. Some lenders will use bank statements, others may not. Most if not all will take tax returns.
10-10-2013 01:02 AM
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO