Los Angeles isn’t a cheap city to live in, and you know just how expensive it can be if you live in Inglewood. Things happen, and sometimes your credit takes a hit. If this sounds familiar to you and you need a vehicle, how do you go about getting a bad credit car loan in Inglewood? Keep reading to find out.
Getting a Bad Credit Car Loan in Inglewood
It isn’t easy finding bad credit auto financing, but it helps to know what subprime lenders look at to determine approval. Credit does play a role, but subprime lenders also look at factors beyond your credit score, including:
- Income – How much money do you make, and can you afford a vehicle? Subprime lenders have a minimum income requirement you must meet – usually between $1,500 and $2,000 a month before taxes from a single source – and like to see a three-year work history with no major gaps between jobs. Make sure you bring in a copy of a recent computer-generated pay stub that shows year-to-date earnings, or recent tax returns if you’re self-employed, to serve as proof of income.
- Residency – Bad credit lenders want to make sure the address you list on your application is where you actually live. A recent utility bill in your name to the address on the application is needed as proof of residence.
- Phone – Subprime lenders need to make sure they can contact you, so they require proof of phone. Bring in a phone bill from a national carrier in your name. While it can be for either a landline or a contract cell phone, prepaid phones aren't accepted.
- Personal References – You're going to be asked for a list of personal references, too. How many you need varies, but subprime lenders generally look for anywhere from five to 10. These can be anybody you know on a personal level, and you need to list their names, addresses, and phone numbers.
- Down Payment – You usually have to meet a down payment requirement when you have bad credit. The minimum amount needed varies, but most bad credit lenders ask for $1,000 or 10 percent of the car’s selling price, whichever is less. Your down payment can be made in cash, trade-in equity, or a combination of both.
Also, depending on the lender, their requirements, and your credit, you may be asked to get a cosigner. You can read up about cosigner requirements and questions here to learn more.
Types of Bad Credit Car Dealerships
Did you know there’s more than one type of dealership that specializes in bad credit auto financing? You may have seen them around West Century Boulevard or South La Brea Avenue and not even realized it.
Subprime lenders that work with special finance dealers are the most common – and best – way to get a bad credit car loan and a chance to improve your credit. But if you’re turned down by a subprime lender, where do you go next?
Your next option is a buy here pay here (BHPH) lot. BHPH dealerships don't rely on outside lenders. They provide the financing themselves, which means you can buy a vehicle and get a loan all in one place.
These dealers typically don't even look at your credit. Instead, they look at your income and down payment to qualify you. As long as you meet their income requirements and have the necessary down payment, you shouldn’t have any issues getting approved.
The downside of buy here pay here dealerships is that since they don’t run credit checks, they’re probably not going to report your loan or timely payments to the credit bureaus. This means the loan can't be used to raise your credit score. If credit repair is important to you, you may want to reconsider this option.
Ready to Get Started?
No matter where you live – Inglewood, Hawthorne, or anywhere else in Los Angeles – Auto Credit Express wants to connect you with a local dealer that can get you financed.
For over 20 years, we’ve been helping credit-challenged consumers get behind the wheel by matching them with dealerships near them that have the lending resources they need. Getting started is easy. Just fill out our free and easy car loan request form and we’ll get right to work for you!