Do You Need Pay Stubs For An Auto Loan? A Simple Checklist

Do you need pay stubs for an auto loan? What else is necessary to get the loan you need for your new dream car?

Auto Loan

You’re in the market for a new vehicle, and it looks like you’re going to need a loan. Getting a loan for a car is a big decision, but once you know what you want, you have to figure out how to qualify.

Do you need pay stubs for an auto loan? What else is necessary to get the loan you need for your new dream car?

We are here to help you figure everything out. Continue reading this article to learn more about what you need to get an auto loan.

Proof of Income

You do need proof of income when you’re going to get a loan for a car, but it doesn’t necessarily have to be a pay stub. Some people do prefer you to give them a pay stub, but you can easily make one with a paycheck stub maker if you are self-employed and don’t have an employer to provide one.

There are other ways you can prove your income as well. If you’re self-employed, some companies may require you to give them two years of tax returns. Their goal in getting these tax returns is to make sure your business is stable, so you don’t get in over your head with an expensive loan.

They may also ask to see a recent bank account statement to make sure you’re in the clear and able to afford a new payment.

Proof of Residence

Auto loan companies often require that you prove your current residence. You can prove this through your utility bill, cell phone bill, or other bills in most cases.

Some lenders are comfortable with lending you money as long as you have a driver’s license with your correct address on it.

Personal References

If you don’t have an established credit history, an auto loan lender will often ask you for a list of references. They want to make sure that they have people they can contact in case you don’t pay your loan.

Keep in mind that if you do put people’s names down and you don’t pay, those people are going to know because they will call and harass them until they help them find you.

They also figure you might be hiding your car there from repossession, but as long as you pay your payments, you’re good to go.

Phone Bill

If you’re a subprime borrower with bad credit, you might have to bring in your phone bill. The reason they want your phone bill is for skip tracing in case you decide to stop paying your bill.

Full Coverage Insurance

You’re also going to need full coverage insurance if you want to get an auto loan. Lenders want to make sure they can get their money back in case something bad happens to your vehicle.

You’ll also likely find there is a maximum deductible you’re allowed to have on your insurance. Most of the time, it is $500 maximum deductible to satisfy your lender.

Driver’s License

You’ll also need to bring your driver’s license with you. It doesn’t matter what state it is from since it just needs to be a valid driver’s license.

What to Do When You Have Bad Credit

You might be worried about not being able to qualify for an auto loan. Depending on how bad your credit is, you might get denied and not be approved for a loan. If that is the case, there are things that you can do to make the situation better.

Learning tips for paying an auto loan before you get a loan can help you avoid future troubles, but before you can do that, you need to work on your credit history. Here are some tips for what to do to start building up some credit history.

Get a Secured Credit Card

If your credit is really bad, you might need to get a secured credit card. A secured credit card is a card that you put money on and can only use the amount of money you’ve put down as a deposit.

When you do this, it will allow you to get used to using a credit card, and it will report your activity, so you can start building your credit.

Get a Low Limit Credit Card

Once your credit looks a little bit, you can get a low limit credit card. Some of these credit cards are only for $200, and they might have an annual fee.

While it might not make the most sense to pay so much money, keep in mind that it is meant to help you build your credit history, so you can get a loan to get your car.

Get Someone to Cosign a Loan

If you have someone that will sign for you to get the loan, that can be the easiest way for you to get the loan quickly. Keep in mind that when someone cosigns for you, that means they will have to take the debt on as their responsibility, and if you don’t pay—they’ll have to.

The person that cosigns will have a more difficult time getting a loan of their own, so don’t get upset if your friends aren’t able to help you out.

Do You Need Pay Stubs for an Auto Loan? – Now You Know

Now you know the answer to, “Do you need pay stubs for an auto loan?” and you have more information about what you need to get the car you want. Having this information will allow you to go into things prepared.

Do you want to learn more about loans, personal finance, and other important topics? Keep going through our blog to get the information you need.

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