Can an eviction affect a car loan?
In most cases, the eviction shouldn’t affect your ability to keep your auto loan. However, a permanent address is usually a requirement for getting a car loan, especially if you are already struggling with bad credit.
Obtain a car loan during an eviction
If you are in eviction proceedings while trying to finance a vehicle, you may not be successful. Most lenders, especially those who work with bad credit borrowers, require that you have a residence and that you have lived there for some time.
Generally, residential stability helps a lender to have confidence in a borrower. It also helps lenders with repossession cases, if they need to contact you or recover a vehicle if you’ve defaulted on a loan.
There are exceptions, however, such as for people traveling for work, so be sure to check with your lender if you are in a single residential situation.
What happens to my loan if I am evicted?
If you already have a car loan and are kicked out of your residence, it probably doesn’t have an impact. Your eviction isn’t on your general credit reports or on the one a car lender is likely to see. If your eviction is due to missing rent or mortgage payments, these can be reported and negatively impact your credit score.
Talk to your lender if the eviction could affect your car loan. If the eviction puts a strain on your finances or you become unable to make your payments, you may have to ask your lender for a deferral. In this case, they should know what is going on in advance.
Can I buy a car without a permanent address?
Yes, you can buy a car without a permanent address, as long as you pay in cash. If you have excellent credit, financing a vehicle without a permanent address may not be as difficult as when your credit score suffers. However, you do need a permanent address to register and insure your car, so having an address is a crucial step in the car buying process.
Residence requirements and car loans
Typically, conditions of residence go hand in hand with other car financing requirements, such as proof of income or ID. If you are in a bad credit situation, due to an eviction or whatever, you might face more demands than someone with a higher credit score.
The specific residency requirements you need vary depending on the lender. If you are a borrower with bad credit, lenders will likely ask you for a permanent address. This address must be accompanied by invoices or bank statements in your name. Some lenders prefer that you live in the same place for at least six months to a year.
If you’ve recently been evicted and have poor credit, it may be a good idea to wait until you’ve established a new residence before trying to get a car loan. This can help secure your auto loan qualifications.
Ready to find a car loan?
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