Income verification

[Smarter]

I am wondering if Cap 1 or Roadloans always want pay stubs before approval.  My scores are about 100 points higher than my husband's (TU 680,EQ 682), but I am not working right now--we just moved to a new state for his job.  He has a 6 figure income--I have zilch!  I need a second car so I can go to work!  Has anyone been approved and not had to submit pay stubs?

I have been working on credit repair for the last year or so--Had my husband up to 620 and then an old collection hit.  I am trying to wait out SOL.  Thanks for any help!

[Anonymous]

MOST places are going to require paystubs.  they may allow you to be on the loan and get a better rate that way and just use his income, but It probably won;t change the rate anyways.  Without income, a FICO doesn't do much for you.

[Anonymous]

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@Anonymous wrote:
MOST places are going to require paystubs.  they may allow you to be on the loan and get a better rate that way and just use his income, but It probably won;t change the rate anyways.  Without income, a FICO doesn't do much for you.

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when using someon's income does the credit score of that person decrease you chances of getting approved?

[Anonymous]

First off, you usually have to be ont he loan to count income.  In they heday of cheap lending they sometimes would qualify loans based upon "household income" and 1 person's credit but I think that is over now.  As far as how they count two income with differnet scores it varies.  Some will go by the lowest score and some will go by whoever is listed as primary to determine eligibility and interest rate. 

[Anonymous]

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@Anonymous wrote:
First off, you usually have to be ont he loan to count income.  In they heday of cheap lending they sometimes would qualify loans based upon "household income" and 1 person's credit but I think that is over now.  As far as how they count two income with differnet scores it varies.  Some will go by the lowest score and some will go by whoever is listed as primary to determine eligibility and interest rate. 

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so with that being said how would cap 1 and roadlons go about that?

[Anonymous]

I have never had to verify income when purchasing a car.....for which I have purchased 4 since 2005 with the last one in August of 2008.  My FICO was enough....in 2005 it was only around 620 when I bought the first one.

[203bravo]

I've also never shown up with check stubs.  Maybe it's the subprime lenders that are requiring that.  Remember that if you have a decent FICO (which sounds like you do).  Then they are holding the title to the auto as collateral for this loan.

[Smarter]

Thanks for the replies.  I hadn't thought about the car being collateral....

[MattH]

In general, for credit purposes (whether for auto loans or mortgages) when the member of a couple with more income has the lower credit score they cannot count the higher income while ignoring the lower score or vice versa.  An individual can apply based on his or her own income, debts, and scores, or a couple can apply based on their combined income, debts, and scores.  The one common exception that I know about is some credit card applications ask for total household income.

I will note that in my own experience the only time I've ever been asked for verification of income was for the mortgage on my residence, every other lender has approved me based on my credit history and what I wrote on the application form.  When I bought my current car I was approved the same day.  However, I have not applied for any credit in several years, so perhaps in the current climate income verification might be more common than it used to be, I dunno.

[MattH]

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@Smarter wrote:
Thanks for the replies.  I hadn't thought about the car being collateral....

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Yes, a car is collateral.  Possibly part of the reason no auto lender has ever asked me for verification of income was because my trade in plus down payment were always at least 25% of the total purchase price; I gather the bigger the down payment the safer they feel.

Edited to add: if your husband has a six-figure income then I strongly recommend this be the last car loan you ever have in your lives, at that income level you should be able to find room in your budget for paying off all non-mortage debt pretty quickly.  Keep this car until it falls apart, so that once the loan is paid off you can immediately open a savings account where you put a monthly amount equal to the loan payment towards its replacement!

Message Edited by MattH on 05-14-2009 07:13 AM