A retired pensioner is searching for a bad credit auto loan

How to Get a Bad Credit Auto Loan for Pensioners

Milad Hassibi November 13, 2018


If you are a pensioner with a less than perfect credit score, you may be wondering if you can qualify or even get pre-approved for a car loan.

When it comes to auto loans for consumers with bad credit, many lenders place a heavy weight on income as an ability to repay.

Almost any lender will need to know the sources of your income and proof of it.

Although most pensioners can find a bad credit auto loan, there are still some requirements you must meet in order to qualify.

Pensioners and Auto Loans

When it comes to bad credit car lender, there are certain requirements a pensioner must meet. For A pensioner is standing next to a car and has bad creditinstance, most lenders will want to ensure that you have a monthly income of $1,600 per month pre-tax.

However, many lenders are cautious when it comes to lending to pensioners who have bad credit.

This is because income from your pension, social security, or disability cannot be garnished by a lender according to law.

This means that if you were to stop paying your auto loan, the lender would have no way of collecting from you.

Can Pensioners Get Car Loans?

Yes, pensioners can qualify for bad credit auto loans. If the only income you receive is from your pension, you may be able to qualify for an auto loan from a bad credit lender, as long as you meet the other requirements

  • Monthly Income – Typically, most subprime lenders want to see applicants with a monthly pre-tax income of $1,600 per month or more from a single source. Typically, you may not combine multiple sources of income to qualify for an auto loan.
  • Proof of Residency – To ensure compliance, lenders will need to know where you live. Your chances of approval may increase if you have had a stable residency history.
  • Proof of Identity – Lenders will want to make sure that they are providing a car loan to a real person. Be prepared to show proof of identity with an ID or social security card.

Interest Rates on Bad Credit Auto Loans

Typically, the interest rate that a lender provides you does not have a strong correlation to your income or source of income.

The single largest factor in determining the interest rate you receive is your credit score.

Get a Car Loan with Any Credit Along with a Happy Couple and a New Black SUV next to them

Most low-interest auto loans are only available to pensioners with a healthy credit score.

If you have a bad credit score and are a pensioner, you will need to go through a subprime lender.

Final Note

All in all, it can be hard to qualify for an auto loan on a fixed income. If you are looking to buy a new car but have less than perfect credit, CrediReady can help.

Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!



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