How You Stand With The Lender
Parents with a strong history of repaying their debts on time have a small number of existing debts. Adequate income, to pay for their monthly obligations represents a lower risk. They usually wind up getting the best interest rates and are required to pay less down.
Those who have had a few late payments or charge-offs or who have recently changed jobs may not get a high credit score as they deserve. Poor credit lenders take these problems into consideration but will qualify you based on your available income and you ability to pay down the loan.
You May Qualify For A Subprime Loan With Child Support
Subprime lenders, on the other hand, specialize in providing high risk loans to borrowers who have a higher risk profile or have experienced bankruptcy. Those who have had a few issues with repaying debts in the past can qualify for a subprime loan and loans tailored to fit your need for low-income car loans.
It is important that the borrower show more than enough money coming in to meet their monthly obligations. This helps prove that they can make their monthly loan payments on time. Bad credit auto lenders look closer at all your forms of income combined and not just your credit score. It is important for them to have an accurate evaluation of your income including child support and alimony vs your outstanding debt.
Refinancing For Cash Out, Consolidate debt and Lower Your Payments
When applying for Auto Refinancing by Valley Auto Loans, make sure that you include your child support income as well as other forms of monthly income. This gives the lender a better idea of your income to debt ratio.
Subprime refinancing a car loan allows you to use the equity for cash. is a good way to consolidate debt. Refinancing your vehicle can give you a lower APR then no collateral, personal loans.
Child Support As Income
Many lenders look at child support payments differently than a regular income.
These lenders can choose to garnish this money if the borrower defaults on the loan. What this means is that if a borrower defaults on their loan and can no longer make the regularly scheduled payments, the lender can still repossess the car. However, they cannot obtain a judgment to garnish those funds.
They will not be able to use them to satisfy the difference between the loan and what the lender sells the car for, leaving them with a loss.
Does that mean that people with bad credit who receive child support payments are out of luck when it comes to getting a car loan?
There are a couple of things you can do to improve Your chances of being approved for a loan.