Navigating Low-Income Auto Loans with Disability or Social Security Income
Securing a low-income auto loan can be a daunting task, especially for those receiving disability or Social Security payments. The challenge is further amplified if you have bad credit.
This is because disability and Social Security income cannot be garnished, meaning that if a borrower defaults on their auto loan, the lender cannot pursue that specific income source to pay off the loan balance.
As a result, lenders exercise caution when considering applicants with disability or Social Security income. However, there are at least two situations in which a typical bad credit lender may consider an applicant with these sources of income:
Other Garnishable Income Sources
If the applicant has other income sources that could be garnished if necessary, such as income from a job. The longer the employment history and the higher the additional income, the better the chances of approval.
Long-Term Residences and Situational Bad Credit
Long-term residences and “situational” bad credit (such as a medical issue) rather than “habitual” bad credit (such as a history of late payments) will also increase your chances of approval.
Social Security and disability income can be a hurdle with any vehicle loan but can pose a much larger issue if you have bad credit. To improve your chances of approval, apply online with Toronto Car Loans. We specialize in assisting people with bad credit in finding a dealer that can provide them with the best chance of approval for a new or used auto loan. Click here to apply now.