Proving Your Income: A Mechanic’s Guide

Being a mechanic, you know the importance of being organised. Keeping track of parts, tools, and car repairs is all part of the job. That same organisation comes in handy when it comes to finances, especially if you’re applying for a loan or credit card.

One of the things lenders will ask for is proof of income. This verifies your ability to repay the loan. Having your documents in order will make the process smoother and save you time.

What documents will you need?

The exact documents you’ll need will depend on your employment situation. Here’s a breakdown for mechanics:

• Employed mechanics:
  • Your most recent payslips (at least the last two or three)
  • Your latest tax return (at least two years)
• Self-employed mechanics:
  • Your latest tax returns (at least two years) including Business Activity Statements (BAS)
  • Bank statements showing your business income for a recent period (3-6 months)
  • A letter from your accountant verifying your income (optional, but helpful)

Plan Ahead and Be Prepared

Don’t wait until the last minute to gather your documents. By collecting them beforehand, you’ll be ready to apply for a loan or credit card whenever an opportunity arises.

Here are some tips for staying organised:

• Keep electronic copies of your payslips and tax returns.
• If you’re self-employed, consider using accounting software to track your income and expenses.
• Set up a system for storing your financial documents, whether it’s a physical folder or a designated digital folder on your computer.

By following these tips, you’ll be a financially prepared mechanic, ready to take on whatever opportunities come your way.