Can a lender ask about my child support payments?
I'm applying for an auto loan, and I'm wondering if the lender will ask about the child support payments I receive. Will this be considered part of my income?
“The short answer is that your lender can ask you if you want to provide this information, but you don’t have to. If you choose not to provide them with the information, it won’t factor into your income calculations for the car loan.
To make a decision on whether or not to provide it, consider how it will affect the lender’s calculations. For example, a lender might calculate what’s known as a debt to income ratio, which takes your bills every month and divides that using your income before tax. If the ratio seems too high, they might ask for further income documentation to ensure you can afford the loan.
In short, if you think that providing alimony information will support your bid for a loan, then you may want to have it considered. If you think your income is sufficient without it, then feel free to keep it private.
To make sure you’re getting the best deal on a car loan, you can check your credit score and shop around different lenders for the best rates. It also helps to get preapproval from your bank or credit union. You can use this when negotiating for better deals at dealerships.
When you do finalize your purchase for a new car, remember that you’ll need to get car insurance. Financed vehicles require different coverages, but it doesn’t have to be super expensive. Use the free Jerry app to compare rates with the top providers and get the best deals delivered to your phone in minutes.”
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