Can You Finance a Car with Bad Credit Using SSI or Child Support?

Those individuals who are using a Social Security income or receiving child support will find that it's incredibly difficult to finance a car with bad credit. This is largely due to issues that exist with auto financing for people with poor credit and the importance placed on meeting specific stipulations. Things become more impossible when the majority of your income with is made up by child support payments and disability to income.

The Difficulty of Financing Cars with Child Support and SSI

Many might wonder why the type of income they have matters when it comes to financing. The truth is that child support and SSI income are unable to be garnished by the lender if you were to have your vehicle repossessed. This means that the dealership that approves your loan would not be able to take you to court and be reimbursed for the remaining amount on the loan.

Of course this is understandable, as car loan companies should have the right to protect themselves. The only remaining question is what does is mean of you as an applicant? Is it still possible to get a loan with special circumstances?

 

How to Qualify for a Loan

The answer is yes. Lenders are not completely unwilling to work with these incomes to help you qualify for special financing, but you do need some additional help to qualify.

1. Establish Wages that can be Garnished:  If the key thing that is holding you back from bad credit auto loans is that your wages can't be garnished this can be fixed. By acquiring a job that offer a W-2 wage income you can prove to a dealer that you have an additional source of income to use. 
2. Stable Living Conditions: Having bad credit while using SSI or child support as your main income are bad enough, but having a history of multiple addresses changing can hurt as well. A dealer uses this information to tell if your poor credit status was situational or habitual. 

Also, in order to effectively use these other forms of income when financing a vehicle with disability income one must be able to show documenting proof. In the case of child support a lender must see the original court order or divorce decree. Those using SSI and disability incomes need the original award letter describing the payment amount, as well as bank statements to prove they have been received.