Having a stable residence is the cornerstone of car loan approval, especially for those with poor credit.

Address and residence history for vehicle loan

When you apply for vehicle financing, the lender looks at your income, address, employment history, down payment, and more. Two of the most important factors are your income and your home address – stability is the key to auto financing. Auto lenders ask you for your home address to see how stable you are in terms of living conditions.

With a permanent address, you run less risk for the lender. If you move frequently or don’t have a stable history, it can pose a risk of flight for them and make them less likely to approve you for a car loan. However, if you’ve lived in the same place for a long time or are a homeowner, your chances of getting approved for a car loan increase.

Owners have a very good chance of fulfill the residency conditions and often higher approval ratings because buying a home is a big commitment. In the eyes of an auto lender, it is likely that you are not going to leave town and drive home with the vehicle – having a mortgage or a home owner shows the lender has financial and life stability.

Plus, having an active mortgage on your credit reports is good for your overall credit history (if you’ve made payments on time). If you have a good credit history with your mortgage, it can signal a car lender that you are ready and able to pay off your current loans.

Don’t worry, you don’t have to be a homeowner to get a car loan. Renters who have lived in the same residence for some time are also considered stable by lenders.

Meet residency requirements

It is not that difficult to prove your home address for a car loan. An auto lender is likely to ask for your driver’s license showing your correct address, and either a utility bill in your name with your current address, or a bank statement showing your current address.

The longer you have lived in the same area or have the same address, the more likely you are to meet the residency requirements of an auto lender. The specific area you live in doesn’t matter to an auto lender – the time you spend in one location is what it looks at.

If you have bad credit, expect a bad credit auto lender (also known as a subprime lender) to educate you on your stability of life. Many subprime lenders require that you have lived at the same address for at least a year. Some may consider unique circumstances, such as those who travel frequently for their work. For example, entrepreneurs who travel for different jobs may still meet residency requirements because their job requires them to travel a lot.

Borrowers who haven’t had the exact same address for at least one year may be eligible for vehicle financing if they’ve lived in the same area for about three years, but it varies. Be upfront with your car lender about your life situation so they can get a better idea of ​​your stability and decide what you qualify for.

What if I don’t have a permanent address?

Without a permanent address, it is difficult to get approved for an auto loan. Your address is also a way for lenders to contact you regarding the status of your car loan. If you live with relatives and the mortgage / lease is not in your name, or if you’ve moved a lot recently, you might have trouble getting a car loan approval.

Temporary living situations are also not likely to be accepted by a lender, such as a borrower who resides in a hotel or motorhome that is not on their own property.

In the case of financing of risk vehicles, they may be willing to help you in unique circumstances, but it all depends on your personal situation.

Need a dealer near you?

Having a permanent address increases your chances of getting the auto financing you need. However, finding a lender who can help you with credit issues isn’t always that easy. Through our nationwide dealer network, however, we want to help you find a dealer who has signed up with subprime lenders.

TO Auto Express Credit, we’ve been connecting consumers to dealerships with bad credit auto credit resources for over two decades. To be matched with a dealer in your area who can help you with unique credit situations, complete our free form auto loan application form.


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