Getting approved for bad credit car financing in Seattle may be easier than you think. The key is to get connected to the right dealership – the type that knows how to handle less than perfect credit situations. Auto Credit Express can help you find one of these dealers near you, and we have some other helpful tips that can help you get approved and successfully complete a bad credit auto loan.
Seattle Bad Credit Car Dealerships
You shouldn't assume that you can't get a car loan just because you have imperfect credit. There are auto financing options available in Seattle and the surrounding area for nearly every type of credit situation, including bad credit, low credit, no credit, and even programs for those who have been through a bankruptcy or repossession in the past.
At the same time, the majority of Seattle car dealerships aren't able to assist people with poor credit. Most are signed up with lenders that place too much emphasis on your credit score and aren't willing to give you a second chance. This is the reason why Auto Credit Express has stepped up to make the process of finding auto financing easier.
We've teamed up with dealers all around Seattle and the rest of the country that understand and know how to work with difficult credit situations. Our partner dealerships have lenders who are more lenient when it comes to credit.
This means Auto Credit Express is on your side to help you get connected to a Seattle bad credit car dealer near you. You can get the second chance you need and use the auto loan to improve your credit score so you can get on your way toward a brighter credit future.
Bad Credit Auto Loan Tips and Tricks
While getting connected to the right kind of dealership is a step in the right direction, there's a lot more Seattle car buyers can do to get approved for and successfully complete a bad credit auto loan:
- Choose a vehicle you can comfortably afford – Sticking to a budget is very important when taking out a bad credit car loan. Because your interest rate is going to be higher than if you had good credit, it's smart to stick to what you need instead of what you want. Think practical and reliable and use the loan to improve your credit score, and then you should be in a much better position the next time you need a vehicle. A good rule of thumb is to try to get a car with a payment that accounts for no more than 10 to 15 percent of your monthly income.
- Pick the shortest loan term possible – A longer loan term means a lower monthly payment, which is why many borrowers are choosing longer loans. However, this strategy can cause you to lose sight of the total cost of the loan. The longer your loan term, the more you end up paying in interest charges. Because bad credit auto loans come with higher interest rates, this is even more important to consider. You don’t want to pay $24,000 in total for a $15,000 vehicle just because you extended the loan to get a lower monthly payment. Our advice would be to choose a term of 48 or months or less, or 60 months at the absolute most. If you have to stretch the term beyond that just to afford the payment, it means that the car really doesn't fit your budget and you should move on to something more affordable. Doing this also helps you stay in an equity position, which makes it easier to qualify for refinancing or even trade in your vehicle down the road.
- Make the largest down payment you can – Another solid piece of bad credit auto loan advice is to try to put more money down than what's required. A down payment works to your advantage in so many ways. To start, making one is often required when your credit is less than perfect, so having a down payment helps you get approved. Additionally, putting money down saves you money because it means you're financing less. A smaller loan amount lowers your monthly payment and reduces the interest charges you pay in the long run. A down payment can also make shortening the loan term easier. This is because the increased monthly payment that results from the shorter loan term may still fit your budget after the down payment is factored in. All the while, putting money down can also help you get in an equity position sooner or stay in one the entire time. As previously mentioned, this helps you because it gives you more flexibility to trade in, refinance, or even sell your car down the line.
Having poor credit doesn't have to stop you from getting an auto loan, but it should change the way you go about it. These tips can put you in a better position to get approved and successfully complete your loan.
Car Dealerships That Work with Bad Credit near Me
Auto Credit Express wants to help you break the cycle of bad credit. We want to give everybody the opportunity to get the financing they need. Our service can help Seattle car buyers get connected with a dealer near them that knows how to work through credit challenges.
From Everett to Bellevue and everywhere in between, we're teamed up with special finance dealerships all across Seattle that want to help. Submit our auto loan request form, and we'll walk you through what's next. Get started today!