Can I get a car loan if I'm a freelancer?

I'm a freelancer, so I only get 1099s from my clients. When I went to apply for a car loan, the bank said they only accepted pay stubs as proof of income. Do these 1099s work for a loan application?

Answer
Getting a car loan as a freelancer is similar to being a salaried employee with only one major variation: you’ll have to use 1099s and bank statements as proof of income rather than W-2s or pay stubs.
Because you’re a 1099 worker, lenders may also want to see your tax returns to verify your income over an extended period. But if you can prove steady income over the last six months to a year, you shouldn’t have any problem getting a car loan, provided that you have a good credit score.
If you want more information, simply ask your lender. They’ll tell you exactly what they need to get you approved.
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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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