Proving Child Support Income
Borrowers who use child support payments to bolster their income will have to be prepared to show both the amount of the payments as well as the frequency. This means that to claim the payments as income, the borrower will need to provide a copy of the order. That will outline the amount and frequency of the payments but the duration of time they will be receiving them.
Child Support Payment Issues
If the borrower is ordered to make scheduled child support payments is behind, getting approved for a car loan is almost impossible. The leading concern for this is that borrowers of this type tend to job shift to avoid court garnishments. This lack of stability does not sit well with most lenders and most will red flag the application immediately.
Of course, job hopping is not the only reason banks do not want to take a chance on lending money to someone behind in their child support payments. The other reason is that when the courts do catch up to the borrower and begin garnishing wages to recover the delinquent support, it leaves the borrower with less available funds with which their car payments. Usually, this results in a defaulted loan and repossession.
The good news is that while it might be more difficult, borrowers in this situation even have a few options to improve their chances of success with lenders. Making arrangements with child services to catch up the delinquent payments and providing proof of these systems will cause some banks to take a second look.
Gaining Money for Your Divorce and Child Custody Case
Valley Auto Loans offers useful, practical information and financial tips for paying for and selecting an attorney, paying lawyer retainer fees and how-to advice about divorce and child custody costs and where to get help.
I am convinced that borrowers with poor credit will have to overcome several hurdles to secure financing to purchase a new car. However, with a little work, both situations can be minimized. Applicants should be prepared to supply any applicable documentation that the lender will require proving your ability to pay back the loan.