Are you looking for a bad credit auto loan in Los Angeles?

The Global Financial Crisis has caused a crisis in the ability for a lot of people to obtain loans, particularly car loans. if you are looking to find a bad credit auto loan in Los Angeles you need to understand a few fundamental issues surrounding the credit system and then approacha specialist lender.

Bad credit auto loan specialists will match your particular history with lenders in Los Angeles that will work with people who have a bad credit history, in fact some car dealers will specifically look for ways that they can deal with people held back by a low credit score.

• In general your FICO score will need to be between 500 and 650,the higher your score the more likely a mainstream lender will be interested in dealing with you which generally means the bad credit loan will be costing you a lower interest rate.

• Having some credit history is generally vital to being considered a worthwhile risk by the lenders, this generally means a minimum of 3 years and ideally including a previous car loan.

• Generally the lenders will only be interested in you if you have at least $1500 per month gross coming in, though the more you are earning above that the more options you will have at better interest rates.

• They will also calculate your living costs based on what you tell them but also using their own judgement to calculate how affordable the proposed bad credit car loan is. They are generally looking to see that the total of your debts is less than 50% of your Gross income.

• It is fairly normal for lenders to not want to lend more than 20% of gross monthly income on a bad credit auto loan basis.

• It is very much in your favour if you have a large deposit or you are trading in a vehicle against the cost of the new vehicle, as historically this has shown bad credit loan borrowers to be more reliable.

• If you currently have a car loan it is important that is paid off before you consider applying for a bad credit car loan as lenders will generally not allow you to be paying off 2 loans at once with this type of loan.

• There are several types of vehicles that you will really struggle to find a lender to work with for, they include motor trailer homes, rebuilt vehicles and vehicles built and used for commercial purposes.

Fleet rates   6340 Wilshire Blvd, Los Angeles
(888) 861-8080

800 Loan mart 15821 Ventura Blvd. Suite 185
(818) 285-1840

Magic Auto Center 18923 Ventura Boulevard
(818) 675-5762