With a thin credit file, with major derogotory items, and no real use of credit, you are going to find it difficult, if not impossible to obtain a car loan for any amount, forget that much money. Some of the factors that go into a car loan decision:
- Credit history - yours is thin and has major derogs
- Income - you have no reportable income which will almost guarentee an automatic decline
- Job history - you have none to show
IMO, you will need a co-signer with decent credit if you want to obtain a loan.
Starting Score: 627 EQ, 621 TU - 11/15/08
@Jchuthemyth wrote:
What if after i get rid of all the derogs? Do I stand a chance?
Is the proven income a very important part in car loan?
Can someone please tell me what should I do in order to get the loan, I can put more for down payment, I just wanna get loan to build my credit.
Thanks
Yes. I can't imagine anyone loaning you money with no source of income. Just because you're a poker player doesn't mean you don't have income. Apparently you've elected not to report that income to avoid paying taxes. Setting aside whether you are legally or morally obligated to file returns, there are additional consequences to not reporting your income. A lender is not likely to just take your word for it that you make so much money per year. Start reporting your income and you will be able to secure more financing in the future.
In short, if you don't claim the income on your tax return, then it is not considered income for any lender. Lenders cannot include earnings you are illegally not claiming on your taxes. Yes, income is a BIG deal when it comes to a loan. If you have no verifiable income, the lending company is going to assume you can't pay it back.
As for a home loan, self-employed individuals are the hardest to get financed, mostly because of the reason you just mentioned... you aren't claiming income. They will use your tax returns to determine your income level, so if you aren't claiming a lot, you will never get a house.
If I were you (this coming from a CPA), I would start to track my income appropriately, make quarterly tax payments on that income so that it doesn't all hit at one time, and file your taxes properly. In addition to the threat of the IRS finding out and auditing you, you will never be able to secure any financing. It just doesn't make sense. I have a poker player who is a tax client - we track everything appropriately and he shows very nice income on his tax filings.