Now if you want to purchase an automobile by using cash tip income then you should not necessarily just walk in there and put the money down. Typically if you have credit problems and live off of a cash tip income there will be many problems when trying to take out a used car loan to make your next purchase. That being said, there are things that you can do and look into that will be able to help you out when you are applying for financing with cash tip income.

How to Work with your Income

If you are applying for an auto loan with bad credit and your income is by tips or you are paid under the table then you will want to think of taking a different approach. Most often if you apply for typical financing under those pretenses you will be denied. It is very often that people who get paid in cash or under the table are going to not report their income like they should. This is actually a draw for most people to these types of jobs. It creates issues though when you are trying to get approved for a loan and have to show your income. This should be reported though that way you can be credited for what you make.

Here are some IRS tips that might help you to put yourself in a better situation when applying for a loan.

1. Tips are taxable.
2. Include your tips on your tax returns.
3. Report tips to your employer.
4. Keep a daily log of your tip income.

Traditional lenders are not typically going to ask for proof of income, but high risk auto lenders will however require that since they will not be able to base financing upon your credit score (at least you wouldn't want them to).

Other Low Income Issues

Keep in mind that if you have absolutely no yearly income to report because you are doing everything under the table that you will automatically be denied for a loan. Many people are going to under report their income on their tax returns as well. There will be two main issues that are going to arise if you do that though.

1. If you under report then you may have to deal with the issue of being denied for a loan because there is a lack of income.
2. If your income is high enough but the monthly bills are too high for the reported income then you will be denied because the debt to income ratio will be too high even though in reality it may not be.

If you may be struggling to make a purchase with an auto loan then you will want to apply for financing through FundingWay.com. We make sure to help anyone and everyone in any situation to be put in front of the right people to get approved. There are no guarantees but we can help you out.