When it comes to car loan financing, few names are as iconic as LA City Cars Car Loan Center. Known in Los Angeles for financing some of the finest automobiles, LA City Cars takes pride in having the largest selection of Pre Owned vehicles. Our reputation in the Los Angeles area is built on a commitment to transparency, a customer-friendly experience, and consistently exceeding expectations. It’s important to mention that our staff shows remarkable loyalty, with most team members being with us for 15+ years, and some for even 40+ years. We’re a family-owned business, and we treat our customers and employees as extended family members. We are grateful for the support of our customers and eagerly look forward to serving our community to the best of our abilities.
How We Can Help
In a matter of seconds, you will receive the financing offers with individual annual interest rates from various banks. You can choose the best offer and apply for it directly.
Getting approved for an auto loan when you have bad credit, often referred to as “deep subprime” credit (a credit score under 580), can be a challenge, but it’s not impossible. LA City Cars provides easier steps to get car loan if you have bad credit. However, we strongly suggest you do9 the following.
1. Check Your Credit Score and Report
Your credit score plays a crucial role in your ability to secure a car loan and the loan terms. For those with deep subprime credit, the interest rates can be steep. To improve your credit profile, assess your credit score and review your credit reports. If you have some time before you need to buy a car, work on areas like paying down credit card balances and catching up on past-due payments to boost your credit score. It might also worth challenging some of the bad reports on your credit report. If the bank does not respond, the bad report might be deleted.
2. Determine Your Budget
Before you start car shopping, figure out how much you can comfortably afford. Consider not only the monthly loan payment but also insurance premiums, fuel costs, maintenance, and other related expenses. While opting for a longer repayment term can lower your monthly payment, it will result in higher total interest charges, especially if you have a high-interest rate.
3. Save for a Down Payment
Lenders may require a down payment if you have poor credit. A larger down payment can reduce your loan amount and monthly payment while lowering the lender’s risk, potentially leading to a lower interest rate. Consider delaying your car purchase to save for a substantial down payment. Opening a high-yield savings account for your down payment fund can be beneficial.
4. Compare Auto Loan Offers
Before applying for a loan, shop around to find the best terms and interest rates. Explore various options:
- Dealer-Arranged Financing: LA City Cars can help you find a loan with multiple lender options. Perhaps this is the easiest and quickest. LA City Cars long years of experience providing car loans for bad credit can help you achieve your goals quicker.
- Banks and Credit Unions: LA City Cars has established a reputable relationship with Capital One that offer direct auto loans, especially if you have an existing relationship with them.
5. Consider a Cosigner
A cosigner with good credit can boost your chances of loan approval. However, both you and your cosigner face consequences if you miss payments or default, so choose a cosigner wisely.
Build Your Credit for a Brighter Future
While you might be dealing with a high-interest auto loan now, improving your credit score over time can open doors to better financing options. Monitor your credit and develop positive credit habits, which may eventually lead to refinancing your auto loan at a lower interest rate or securing a more affordable loan for your next car purchase.