Smart Auto Loan For SSI Recipients

Auto Loans for SSI Recipients

It's unfortunate, but not everyone will qualify for an auto loan. Many people find that they need a vehicle to go about their daily lives, but auto lenders have requirements that must be met and some people do not qualify.

SSI recipients may find that it can be tough to qualify for an auto loan. And if an SSI recipient is dealing with bad credit, they will find that it's even more difficult to get approved.

When you are dealing with poor credit, the auto financing process is different. Only special finance lenders are willing to work with consumers with bad credit, and they have different requirements an applicant must meet.

One of those requirements is generally a minimum monthly income of $1,500-$1,800 pre-tax, although there is no universal standard. Special finance lenders will also need verification of this income at some point during the process.

However, there is another stipulation attached to the minimum income requirement: the income, or at least a portion of it, must be garnishable. A garnishable source of income allows them to recoup money lost in the event a borrower defaults on the loan and the car is repossessed.

SSI payments cannot be garnished, which is why it can be tougher for recipients to qualify for auto financing. This is especially true for those with bad credit whose only source of income is monthly SSI payments.

However, there are still ways for SSI recipients to get approved for an auto loan. For starters, you can only qualify if you have been receiving SSI for six months prior to applying. Additionally, you need to be able to show that you will continue to receive the payments for the duration of the loan term.

Furthermore, you can help yourself out if you:

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