Article by George Hrisoulis Jr.
Mr. Hrisoulis is the webmaster of Auto Financing - Bad Credit Car Loans and as 20 years experience arranging bad credit auto financing.

If you have bad credit most auto financing companies require you to prove the information provided on the initial credit application.

The following is a list of general stipulations required by most lenders and the documentation they require to support your application..

VERIFICATION OF EMPLOYMENT

How Auto Financing Companies Verify Employment.

Lenders will call to verify your employment status with your employer.  They frequently disregard the employer phone number provided on the credit application choosing instead to use a number provided by directory assistance.  Most will ask for the personnel or human resource department.  This procedure helps uncover bogus employment information provided on the credit application.  The verifier will normally ask the following questions:

• Employment Status
  • Full or Part Time?
  • Active or Inactive
• W2 or 1099 Employee?
• Date of Hire?

You are often required to provide proof of income.

• Computerized Pay Stub.  The easiest way to prove your income is with a recent computerized pay stub with total year to date earnings listed.
• Handwritten Pay Stubs - Handwritten pay stubs that do not show year to date figures. Most lenders require four (4) consecutive pay stubs and a previous year W-2 if available. Some lenders may require a copy of a canceled check or an employment letter to go along with handwritten pay stubs.
• Social Security - Required documentation includes Form SSA 1099, Current years award letter, and bank statements showing deposits.
• Child Support - A copy of the actual court order and a  stub is usually required.
• Self Employed Income - This type of income must be verified through tax returns prepared by a professional tax service. Generally the lenders require two years tax returns.

VERIFICATION or RESIDENCE

How Auto Financing Companies Verify Residence.

Auto finance companies will call to verify your residential status and monthly obligation with your landlord or mortgage company.  If you share your rent with other parties they should be listed on the rent or lease agreement.  This is important for applicants with low income and high rent payments.

You are often required to provide proof of your residence.  The following documentation should be dated within 30 days of the application date.  Proof of residence is often limited to documents that you received through the mail and it must contain your NAME, ADDRESS, and RECENT DATE. Examples include:

• Mortgage Statement.
• Utility bill.
• Credit Car Statement
• Bank Statement

OTHER REQUIRED DOCUMENTATION

You may also be asked to provide the following

• Valid Drivers License
• Social Security Card
• Complete Phone Bill, even if it's not listed in your name.
• Proof of Insurance
• Bankruptcy Discharge Papers
• Personnel References