If you have no credit or bad credit in Seattle, you may be wondering how you're ever going to get a vehicle. There are several options to look into as a credit-challenged consumer, but first, you have to know what your credit looks like so you can start looking in the right place.
Knowing Your Credit Situation
The first step to getting the car loan you're looking for in the Emerald City is to know your credit score and what's on your credit reports. This is information that all lenders look at as you begin the financing process. When you get your credit reports and score, it's important that you know what you're looking at.
The information on your credit reports determines your credit score. There are five factors: payment history, amounts owed, length of credit history, new credit, and credit mix. Each of these accounts for a certain percentage of your credit score. The better the information in your credit reports, the more accurate your credit score is likely to be.
Credit scores fall into ranges, so the better your credit score, the better the rates and terms you’re likely to qualify for on an auto loan. Your credit score directly affects the interest rate you're eligible for, and how long of a long term you may qualify for. A lower credit score may not stop you from getting a car loan, but it might put a damper on how good of a deal you can get.
Getting a Car Loan with No Credit
If you look into your credit and find out that you don't have any, or that your score is low, what do you do? Not to worry, there are still options for getting an auto loan in Seattle without credit in Seattle.
You can try to apply with a subprime lender. These lenders offer loans through special finance dealerships, and are known for assisting borrowers in unique credit situations. Auto Credit Express can match you with a local special finance dealer.
If you can't get approved with a subprime lender, it may just mean that you don't have a lot of credit under your belt yet, and that's OK. In this situation, another option you have is to go to a buy here pay here (BHPH) dealership. These dealers provide in-house financing, which means they are also lenders.
One of the perks of working with a BHPH dealership is that they don't usually rely on your credit to approve you. These dealers are typically more concerned with whether or not you have the income to keep up with a loan payment.
There are some drawbacks to buy here pay here dealerships, though. Buying from a BHPH lot means choosing from used vehicles, and facing a higher than average interest rate. Plus, most BHPH dealers ask that you make a large down payment.
Find a Dealership in Seattle
As a bad credit borrower in Seattle, you have a few options for finding financing, whether from a subprime lender or a BHPH dealership. No matter which situation fits your needs, Auto Credit Express wants to help you find the right place to start your auto loan journey.
We work with a large network of special finance dealers all around Seattle and across the rest of the country. To get started finding a dealership in your area, fill out our fast and free car loan request form and we'll get to work for you!