Getting around Los Angeles isn’t exactly stress free – the traffic is always hectic, and it can take hours to get from one end of the city to the next during rush hour. Many residents need a car to get by, but not everybody can qualify for an auto loan if they have poor credit. The good news is you don’t need great credit to get a car loan. There are plenty of lenders and dealerships that offer auto loans for people with bad credit in Los Angeles.
Where to Find Bad Credit Car Loans in Los Angeles
Here at Auto Credit Express, we specialize in helping residents in and around Los Angeles get connected to a dealer that can assist them with the car buying process. But, what kinds of dealerships can you expect to be working with when you have bad credit? There are two types you could be connected with:
- Buy here pay here dealerships – Buy here pay here dealers are a type of in-house financing dealership, which means they're both dealers and lenders. These one-stop shops make it easy to finance and buy a vehicle because they typically don't run credit checks – you could have little to no credit and still get approved. Instead, they look at your income to determine approval. The biggest drawback to these types of dealerships is that since they don’t run credit checks, they may not report your loan or timely payments to the credit bureaus, which means it wouldn't improve your credit.
- Special finance dealerships – These dealers are signed up with subprime lenders to offer bad credit auto loans. Subprime lenders check your credit, but they also rely on other factors when determining approvals, such as income and residence 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 both types of dealerships is a higher than average interest rate. You may be able to lower your interest rate by making a larger down payment or adding a cosigner, but having a higher than average rate is almost always a given when you have bad credit.
What to Do before You Head to a Dealership
Before you head to a dealer or fill out our request form, you need to do a little research and collect some documents. It helps to know where your credit stands by knowing what’s on your credit reports and to have a budget ready.
As for what you need to bring in, make sure you have all the required documents lenders are going to ask for, such as:
- Proof of income – A recent computer-generated paycheck stub showing year-to-date earnings from a single source.
- Proof of residency – A recent utility bill in your name at the address listed on your application.
- Proof of identity – A valid driver’s license or state I.D.
- Proof of a working phone – A recent phone bill in your name. It can be a landline or contract cellphone.
- List of personal references – A list of anywhere from five to eight personal references complete with names, addresses, and work and personal phone numbers is typically required.
Find a Dealership Today
Now that you know where you should go and what you should bring, are you ready to get started on your car buying journey with Auto Credit Express?
All you need to do is fill out our easy, free, and no obligation auto loan request form, and we’ll get right to work connecting you to a dealership in Los Angeles that can help you get the financing you need.