Do you live in Seattle and struggle with credit? Well, you’re not alone. Many Americans struggle with credit, and find themselves needing financing for a car or house when their credit isn’t in the best shape. The good news is that, in many cases, you can still get the financing you need, but the key is to find the right dealership to work with.
Option 1: Special Finance Dealership
If you’re looking for a bad credit auto loan that can help you improve your credit, your best option is to go to a special finance dealership in the Seattle area. These dealers work with subprime lenders that specialize in dealing with credit-challenged consumers. Although these lenders look at your credit score, they also look at other factors to determine approval such as your income, employment, down payment, and residence stability, to name a few. A full list of bad credit car loan requirements can be found here.
The downside to subprime auto loans is that they come with higher than average interest rates, which raises the overall cost of a loan. As long as you keep up with the monthly car payments, you may be able to refinance for a better rate after two years or so to make the loan more affordable.
Option 2: Buy Here Pay Here Dealership
If you can’t wait for your credit to improve, or you’ve been turned down for a subprime auto loan, you could go to a buy here pay here (BHPH) dealership in Seattle. These dealers loan in-house, and can sell you the vehicle and get you financed all in one place, often in the same day. What makes these dealerships great is that they don’t run credit checks, and instead look at your income (and sometimes residence stability( to determine an approval. As long as you can afford the payment, you have a good chance of getting approved.
The downsides to this type of loan are double-digit interest rates, potentially needing to make weekly or bi-weekly payments in person, a good chance the loan won't improve your credit because these places typically don't report to the credit bureaus, and a down payment requirement that could be over 20 percent. So, if a low down payment and credit improvement are your priorities, you may want to consider other credit building tactics and work toward applying for a subprime car loan.
Need Help Finding a Dealership in Seattle?
Whether you live in Georgetown or Ballard, or anywhere in between, it can be frustrating to drive in and around Seattle trying to find a dealership that’s right for you. Luckily, Auto Credit Express can do the searching for you and save you time. We’ve been helping bad credit consumers for 20 years find the financing they need in Seattle and around the country. Don’t go driving around town searching for a special finance dealer – just fill out our free and easy auto loan request form to get connected to a local dealership.