Why do I need pay stubs for a car loan?

I went to get approved for a car loan, and the loan officer told me I need to show pay stubs as part of the application process. Why?

Pay stubs are a normal part of getting a car loan because they fulfill the lender’s requirement that you show proof of income. W-2s, 1099s, tax returns, and sometimes bank statements can count as proof of income. (Just ask your lender what they accept.)
In addition to proof of income, you will need to present:
  • Proof of insurance
  • Proof of residency
  • Proof of identity
  • Information for the vehicle, most likely the VIN (vehicle identification number)
Coupled with your credit score, income is probably the largest determinant of whether you’ll get approved for a car loan. If you can gather pay stubs, it’s much to your advantage.
Once you get approved for a car loan, you will also need to provide proof of full coverage car insurance. Jerry can help! Sign-up only takes 45 seconds, and you’ll be able to compare competitive quotes from over 50 top insurers.
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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