Child support income can make it more difficult to get a car loan, especially auto loans for those with bad credit. The complications can arise whether you pay child support or receive it as a portion of your income. It is possible to buy a car while maintaining child support payments, and an understanding of how to approach the issue can make it easier to finance the purchase.
Employment History
Someone who has fallen behind on child support payments is statistically likely to move from job to job on a regular basis. This behavior is motivated by the need to avoid staying at one job long enough for wages to be garnished due to child support that is owed. Lenders can pursue defaulted car loans the same way, through wage garnishment, and they like to know you have reliable employment. If you find yourself behind on child support payments, resist the urge to start job hopping if you plan on buying a car with a loan. Try to maintain an employment history that displays reliability and responsibility to potential lenders.
Back Payment Arrangements
Something that can improve the chances of someone behind on child support payments being able to get a car loan is by making official arrangements to pay the debt that is owed. When you apply for the car loan, provide proof that the arrangements have been made and that you've started paying off back child support. Most high-risk lenders will take this into consideration when deciding on your financing application.
Maintain Your Credit
Good credit can make buying a car while maintaining child support payments much less difficult. When credit is lacking, high-risk lenders will look to other aspects of your financial situation for financing qualifications. Check your report and start working toward improving your credit score wherever possible, like paying an old bill you've forgotten about or correcting negative report errors. Take control of your credit, and your finances in general, before trying to buy a car.
The secret to buying a car while maintaining child support payments is working within your budget so that you do not fall into arrears. Should you find yourself behind on child support and in need of a car loan, proactive measures toward repayment is recommended. Be prepared to show proof of your entire income and any payment arrangements currently in place. These tips should help you finance the purchase of a car that is both reliable and affordable.
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