topic This isn't for me, so please no stank eye! in Auto Loans

This isn't for me, so please no stank eye!

jkjklkjkl — Sat, 10 May 2014 20:45:29 GMT

Do lenders verify bank statements by communicating with the bank? Self-employeed indidual, true income, but not reflected in last 3 statements.

Re: This isn't for me, so please no stank eye!

DaveSignal — Sat, 10 May 2014 22:02:51 GMT

@jkjklkjkl wrote:
Do lenders verify bank statements by communicating with the bank? Self-employeed indidual, true income, but not reflected in last 3 statements.

I doubt that they do, but forging your bank statements is a horrible idea. It has the possibility of causing you to lose your loan and car.

Re: This isn't for me, so please no stank eye!

StartingOver10 — Sat, 10 May 2014 22:20:15 GMT

I have been self employed over 30+ years and there has been a couple of times that I purchased a vehicle using dealer financing during that time frame. Not my finest moment because the rate is always better with a CU or bank, but I never had to provide bank statements for verification. Just fill out the app and they run credit. I use my actual income. I usually have 1099's with me just in case when I know I'm going to pull the trigger, but they never ask for them and I never volunteer to provide anything without being asked. However, if you go to a CU or bank then they will automatically require bank statements.

Of course, with the dealer you have to negotiate the interest rate. Never accept their first offer (or second or third) but you know in the end you will end up paying a premium par rate (plus 1% to 2% on market rate) for the priviledge of not providing bank statements directly to a CU or bank.

The other thing you can do is provide a longer time frame for bank statements and an explanation. Have you tried a CU? Also a larger down payment works. Overall, I agree that Dave is right about income...make sure its accurate. When you are self employed it is expected that you will have up and down months.

Re: This isn't for me, so please no stank eye!

Creditaddict — Sun, 11 May 2014 17:16:06 GMT

I would also suggest putting your company name as your employer and listing yourself as a manger or a executive something rather that doesn't say "SELF EMPLOYED"

obviously if your credit is boarder or maybe if enough of your credit report security stuff doesn't match up they will possibly ask for more info and then it would obviously come out your self employed and you proceed that way but in my experience self employed just throws a red flag in any credit proceedings and with cars most of the time they just want it sold and out the door and if they can avoid the red flags for no other reason they would prefer.

if your credit reeport shows your companies name as employer and if you have multiple phone numbers and such this is much easier to do.

Re: This isn't for me, so please no stank eye!

Remember0 — Sun, 11 May 2014 19:16:12 GMT

With good credit, often finance companies (especially captives) don't bother even asking for bank statements/income verification.

A better idea even if verifying comes up, is to say I can't offer bank statements, but give them the last 2 years' tax returns or something.

Re: This isn't for me, so please no stank eye!

jkjklkjkl — Tue, 13 May 2014 17:47:36 GMT

Thanks y'all for your input! She didn't work for the last three years, as she was a stay at home mom, and now, after going through a divorce, has bad credit. I've advised her to try and find a hoopty, so I think she's going to try that route, although the current selection on CL isn't good at all.

Re: This isn't for me, so please no stank eye!

Remember0 — Wed, 14 May 2014 03:30:42 GMT

Does she get alimony or child support as a result of the divorce? Now that does actually count...

Re: This isn't for me, so please no stank eye!

StartingOver10 — Wed, 14 May 2014 15:30:55 GMT

@jkjklkjkl wrote:
Thanks y'all for your input! She didn't work for the last three years, as she was a stay at home mom, and now, after going through a divorce, has bad credit. I've advised her to try and find a hoopty, so I think she's going to try that route, although the current selection on CL isn't good at all.

Ok, this is different than self employed. This is little to no income. It is good advice that you gave her about going for the hoopty because the last thing she needs is a payment if she doesn't have steady income.

Re: This isn't for me, so please no stank eye!

jkjklkjkl — Fri, 16 May 2014 12:46:11 GMT

No, no alimony or child support, unfortunately, her ex (almost anyway) isn't quite together enough to offer any support. I'm sorry, by self-employed, I meant as an independent contractor. She's started 6 months ago, but was only able to work part-time for the last 5 months, but last month, working full-time, her income was more than sufficient. Although it fluctuates, the money is quite steady.
She's still trying to figure it all it; she's sharp, so I'm sure she'll find a way to make everything work!

Thanks y'all for your input! She's now signed up for the forum, so she's already going in the positive!