Financing at Honda Dealer

[Anonymous]

I have terrible credit. My score is 509 when pulled at the Honda Dealer. I am also self employed. They said their lenders only care about line 31 on Schedule C not what I gross. So after my deductions I show that I make very little. Is this correct?? Do lenders only care about line 31 on tax schedule C?

Thanks

[Anonymous]

I just financed a new Honda Odyssey EX last Friday (8/1/2014), and on the Honda application for credit, they only ask for monthly gross income.  There's no reference to lines on a tax form, net or take-home pay.  I'm not self-employed, though.

It sounds like the dealer was doing a blanket application across multiple creditors.  There may also be different requirements for self-employed persons.

[coterotie]

Yes, that is what they care about.  Take line 31 add back in auto depreciation from line 9 or 13 (auto figures will come from a sub-schedule).  That's what you have to repay a loan.  Or the AGI number from the front page of the 1040.  I don't mean this to sound harsh, but with poor credit it looks to them like you don't have enough money to pay your bills and you can't prove to them via your tax return that you do.

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@Anonymous wrote:

I have terrible credit. My score is 509 when pulled at the Honda Dealer. I am also self employed. They said their lenders only care about line 31 on Schedule C not what I gross. So after my deductions I show that I make very little. Is this correct?? Do lenders only care about line 31 on tax schedule C?

Thanks

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[Creditaddict]

With credit that low the good news is if you work on what's going on with it you should see some quick wins for score increases because you can't really go lower... Spend a few months at least doing repair and then look into car again.