Getting around Los Angeles isn’t exactly stress-free – traffic is always hectic and it can take hours to get from one end of the city to the other during rush hour. Many residents need a car to get by, but not everyone can qualify for a car loan if they have bad credit. The good news is that you don’t need good credit to get a car loan. There are many lenders and dealerships that offer car loans to people with bad credit in Los Angeles.
Where to find car loans for bad credit in Los Angeles
Here has Auto Express Creditwe specialize in help residents of Los Angeles and surrounding areas connect to a reseller who can help them through the car buying process. But what types of dealerships can you expect to work with when you have bad credit? There are two types you might be connected with:
- Buy here pay here dealers – Buy here pay here dealerships are a type of internal finance dealership, meaning they are both dealers and lenders. These one-stop shops make it easy to finance and buy a vehicle because they don’t usually do credit checks – you could have little or no credit and still be approved. Instead, they look at your income to determine approval. The biggest downside to these types of dealers is that since they don’t do credit checks, they may not report your loan or timely payments to the credit bureaus, which means it wouldn’t improve not your credit.
- Special Finance Dealers – These dealerships are registered with subprime lenders to offer bad credit auto loans. Subprime lenders check your credit, but they also rely on other factors to determine approvals, such as income and residency stability. They report to the credit bureaus, so this type of loan gives you a chance to rebuild your credit.
One thing you can’t avoid with either type of dealership is an above average interest rate. You may be able to lower your interest rate with a larger down payment or add a cosigner, but having an above average rate is almost always a given when you have bad credit.
What to do before going to a dealership
Before you go to a dealership or complete our application form, you need to do some research and gather some documents. It helps to know where your credit is at by knowing what’s on your credit reports and having a budget ready.
As for what you need to bring, make sure you have all the required documents that lenders will ask for, such as:
- proof of income – A recent computer-generated pay stub showing year-to-date income from a single source.
- Proof of residence – A recent utility bill in your name to the address provided on your application.
- Identity proof – A valid driver’s license or ID
- Evidence of a working phone – A recent telephone bill in your name. It can be a landline phone or a contract mobile phone.
- List of personal references – A list of five to eight personal references complete with names, addresses and business and personal telephone numbers is generally required.
Find a dealer today
Now that you know where to go and what to bring, are you ready to start your car buying journey with Auto Express Credit?
All you have to do is fill out our easy, free and non-binding form car loan application formand we’ll get to work right away to connect you with a dealership in Los Angeles who can help you get the financing you need.