Proof of Income and Car Loans

A major part of the Bankruptcy Loan Application Process involves auto lenders verifying employment. A finance company confirms income for two reasons, to ensure their customer is employed, receiving regular income and to confirm they can afford a new car loan.

This is how banks verify income:

Pay Stub Verification – The finance company will often ask the loan applicant to supply a pay stub from their job. A pay stub shows the bank how much you are being paid, how often and by what company.

Bank Account Statements – Sometimes a bank will ask the person applying for a car loan to show their monthly bank activity. By asking for your bank statements they can see how much income you deposit each month and how much you withdraw. Most banks will total your monthly deposits and consider that your monthly income.

Employer Phone Calls – In many situations, especially when it comes to subprime loans, finance companies will make a phone call to your employer to confirm you have a job. Don’t take it personally, it’s actually quite common.

Tax Assessment –residents receive annual T4 forms, Notice of Assessment or other tax documents to prove their annual income. Depending on how much income you claim or what type of job you have, the bank might ask for your tax information to verify employment.

The above methods for confirming employment outlined by Bankrupt Car Loans are just some of the many ways auto lenders confirm employment. Depending on the type of job or how you are paid the bank may request additional proof of income.

The best way to guarantee your job is verified and your monthly income is approved is to never lie on your credit application and always be honest about your salary or wage.

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