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How difficult is it to be approved for a car loan when self-employed?

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Mshellt
New Contributor

How difficult is it to be approved for a car loan when self-employed?

As a self-employed pet groomer, is there anything I should know before applying for a car loan? My credit scores are all over 660 now and I hope to apply for a new vehicle in December or January. I've heard being self-employed can be a problem though. Is there any special detail I ought to prepare for? What sort of things will lenders want me to prove? Do I need to be self employed for a certain number of years, for instance, make a specific amount of money, show that I have worked within my industry for a specific number of years? Is there anything specific they will be looking for that could help or hurt me?


Starting Score: 630
Current Score:Equifax: 776 TransUnion: 746 Experian: 747


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RavenTKR
Established Member

Re: How difficult is it to be approved for a car loan when self-employed?

I believe the lenders will look primarily at your credit report/score and credit history.

If wou are asked to provide proof of income, be prepared to show them your 1099s. Most of the time however, depending on the lender, they will not ask for it.

If they see your credit score as good enough, they will not bother asking for such documents.

With your credit scores you can expect about a 6% interest rate.

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