Can i get approved for a car loan without proof of income
Can I get approved for a car loan without proof of income?
If you are desperately seeking a car loan but you don’t have the required credit or income to get approved where can you turn to? Well there are loan services in the Toronto area that will offer you a no credit check car loan. Just like the name suggested these types of loans are available to anyone with or without credit. Sounds too good to be true? Well it is not. There are credit services that wouldn’t require a credit check, proof of income, or co-signer. These types of loans services are hard to find in the city, but few small used car dealerships are financing the vehicle through their own pocket. Of course the interest rate is higher than normal, but if you are some one who needs a vehicle and can’t find any other solution this maybe your best bet.
Proof of income is a condition traditional bank loan or the bad credit car loan providers require. Just like the name suggest, it is to proof to the lender you are making sufficient income to support a vehicle on your own. This is due to a factor called “debt to income” ratio, it is a mathematical formula used to calculate your affordability in life. The magic number for debt to income ratio is generally 25-30 percent, this means if the vehicle you are financing cost you $500 per month, you need to make at least $1500 per month for the bank to consider your loan application. Some times if your income stated on your credit application seems questionable, the lender will ask for “proof of income” to verify your income is what you stated in the application.
It is a merely formality for the banks to make sure they are making a sound investment on you, but if you don’t have the proof of income whether you have lost your recent pay stub, or your employer refuses to write you a letter then it is almost impossible for you to be approved for a car loan. But not all hopes are lost; you can apply for “no credit check” car loans where a credit check or proof of income are not required. The only requirement is a small amount of down payment usually less than $500 in total. There are few loan providers in the Toronto area that is currently offering this kind of service; you can find No Credit Check Car Loans at http://www.nocreditcheckcarloans.ca
Thank you for reading this article it is brought to you by Bad Credit Car Loans Toronto, the latest online credit processing center for city of Toronto. Visit us online for more information at http://www.badcreditcarloanstoronto.ca