Bank Denies Man For Car Loan. Then An Expert Says It's Not About His Money Or Credit. It's About His Profession

A car salesman reveals the three income streams that—combined with bad credit—will get you denied at the dealership virtually every time. Here’s the list and what you can do if your job or source of income falls into one of these categories.

TikTok creator Chevy Dude (@chevydude) posted a video with the list earlier this week. “If you have one of these jobs, the likelihood of you getting a car loan is probably pretty low if you don’t have excellent credit,” he says to start the video.

Chevy Dude explains, “If the bank keeps telling you no, it might not just be your credit score: it’s what you do for a living. Banks don’t just look at your credit. They look at how you get paid, and certain income types combined with bad credit will get you denied every single time.”

1099 Workers

The first category of income that Chevy Dude lists is contract or 1099 work. “If you don’t get a traditional W-2 from your job, … you don’t have traditional pay stubs,” he says. “The bank wants two years of tax returns. If you just started at this job, good luck. They’re not going to do it.”

That dynamic can compound depending on your tax situation. “And if you wrote off a lot of expenses, ...  your income looks tiny on paper. Bad credit on top of that? Most lenders won’t touch you,” he says.

Jobs With A Vehicle Allowance

The next category is traveling jobs that give employees a vehicle allowance. Chevy Dude explains why.

“This one is sneaky,” he says. “I see a lot of places going away from giving you a company car and making you drive your own. You think $500 or $600 a month allowance helps you, but the reality is your car is getting hammered with … maintenance repairs.”

That leads to many people, in his experience, spending more than their allowance on repairs. “So when it’s time to buy a car, there’s no savings, the vehicle is worn out, worth very little, or you have a ton of negative equity and the bank still sees bad credit,” he says.

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Social Security Income

“And then there’s Social Security income,” Chevy Dude says. “The average payment is somewhere between $900 and $1,400 a month. With vehicle prices where they are right now, that income alone makes it incredibly hard to hit the debt-to-income ratio most lenders require.”

Don’t mistake him, though. It’s not that no one on Social Security can get approved for a car loan.

“I’m not saying it’s impossible. I’m saying the math really is hard to make work, especially when credit is always a problem," he says.

To end the video, Chevy Dude says, “If you’re in one of these situations, you need to know that going in so you’re not walking out confused and frustrated.”

Viewers React To Chevy Dude’s List

In the comments section of the video, viewers shared their experiences seeking auto loans while being self-employed.

“I’m self-employed and I have no problem getting an auto loan,” said one viewer. “But when it comes to mortgages or any other traditional loans, I can’t get them.”

A second person said, “I have never had a bank ask for proof because of my credit.”

A third person said, “Yeah, being self-employed is a difficulty but if you print off and pay your self-employment taxes quarterly you are usually good.”

The Facts About Chevy Dude’s List

Chevy Dude is right when he says that it is still possible to get a car loan as a freelancer with 1099 income, especially when you have the right credit score. According to Experian, workers in this situation need to provide extra proof of income and potentially fill out some extra paperwork to secure the loan.

When it comes to financing a vehicle with an employer allowance, a Reddit user on this thread posted to r/personalfinance two years ago discussed why banks might be wary of that arrangement. “The money is going to you, not them, so there is a possibility that you wouldn’t pay them,” the user wrote. “You are only receiving that payment while you are employed with that employer. If you are laid off, that payment disappears (so your credit score becomes more relevant).”

Chevy Dude is also correct that some applicants on Social Security might have trouble securing auto loans if their credit score is low and they don’t have savings or any other forms of income. 

Motor1 contacted Chevy Dude via TikTok comment and direct message for comment. We will update this story if he responds.

 

 

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