Can I get a car loan application if I'm collecting Social Security?

I want to get a car loan, but I'm currently living on Social Security only. Is it still possible to get approved?

Answer
If you’re collecting Social Security, it might still be possible to get a car loan. However, Social Security counts as unearned income, which can complicate the process of getting approval.
If you have stellar credit, few bills, and receive $2,000 or more in monthly income, you’re likely a great candidate for a car loan.
If you have poor credit, however, the situation gets tougher. To increase your chance of approval with poor credit, you may need to:
  • Put down a larger down payment (20%)
  • Accept a higher interest rate
  • Bring in a cosigner
A higher interest rate will cost you more money in the long run, but if this is the only way for you to get transportation, you may have to make do.
Once you find the vehicle you want, don’t forget about your car insurance. As part of the requirements of your loan, you’ll need full coverage, which will require some budgeting beforehand.
To find the best rates from over 50 providers including State Farm, Nationwide, Progressive, and Safeco, just use the Jerry app.
Eric Schad
Answered on Nov 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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