How To Qualify For Auto Loans With Bad Credit And Self-employment Income

Being self-employed and having a poor credit score can make getting an auto loan a very difficult task.

This difficulty is primarily the result of some folks, who are their own bosses, failing to report their entire income on the Schedule C of their internet tax return forms. While, of course, this results in the self-employed paying less in taxes, it also leads to lenders not knowing how much a person actually earns.

Fortunately, this is not always an issue for loan applicants since banks do not normally ask for income verification when processing auto loans. However, banks do tend to ask for this from applicants with a FICO score of around 640 and below.

The self-employed have got to report all of their income. Not only will doing so keep them out of prison and from paying interest and penalties, but it will also help them qualify for auto loans when the time comes to purchase a vehicle.

By: Felice Alexander

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