Auto Loans For Independent Contractors

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It can be difficult in a lot of situations to get a loan if you receive a 1099 at the end of the year, but there are ways that you will be able to drastically better your chances. Whether all or part of your income is a result of being an independent contractor and you have less than perfect credit then you will want to figure out what exactly will be the best method to get approved for financing for bad credit used auto loans. Just because you are receiving a 1099 though may not necessarily mean that you should be. There are a few different things that the IRS would like you to know that may change how you think of this and know if you are an employee or an independent contractor.

Auto Loans for Independent Contractors
  • Behavioral Control - Typically if you receive extensive amounts of instruction, are told what type of equipment or tools to use, and who gets hired then you typically will be an employee. Also if you receive extensive training then you will probably be an employee. If not then most likely an independent contractor
  • Financial Control - If you have a large investment in your work, if you are not reimbursed for business expenses, or if you highly benefit from profit or are hurt by a loss then you will probably be an independent contractor because it suggests you are in business by yourself.
  • Relationship of the Parties - If you are one who receives benefits then this will typically signify that you are an employee. If you do not then you may be either. A written contract may better signify which is the true position.


To save money on their taxes there are a lot of independent contractors that will raise expenses which will also reduce income. This creates a huge problem though when your credit score drops to lower levels. Bad credit lenders do not shine as brightly towards people who have bad credit and if it shows that your income is low then that will be a much more difficult situation to get the loan that you need.

Since most bad credit lenders are going to have a minimum income requirements then you will have to meet them or else it will create a struggle. This can be determined by your net income. These requirements will typically range from $1,500 to $1,800 a month as minimum standards. If you meet these and you think that you should have no problems by applying with these lenders to get poor credit financing, then we can help. We have helped thousands get approved at dealers locally to receive bad credit auto loans and before you know it will be at the dealership buying your new car. It only takes a quick application, so get started today!

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Do you meet the basic qualifications?

  • At least 1 year with current employer
  • A minimum income of $1,500 per month
  • No repossesions within the last year
  • Any bankruptcies must be discharged
  • Money down may be required, but not in all cases
  • Must be a current resident of the U.S. or Canada