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Lack of POI Proof of income

Member

Lack of POI Proof of income

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

 

thanks

Message 1 of 7
6 REPLIES
Moderator

Re: Lack of POI Proof of income

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.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Message 2 of 7
Member

Re: Lack of POI Proof of income

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 ?

Message 3 of 7
Moderator

Re: Lack of POI Proof of income


apu6speed wrote:

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.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 4 of 7
New Member

Re: Lack of POI Proof of income

+1

Message 5 of 7
Established Contributor

Re: Lack of POI Proof of income

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.

 

 

Message 6 of 7
Epic Contributor

Re: Lack of POI Proof of income

Who do you bank with that has this cash in it and have you applied?
Message 7 of 7