If you live in Seattle and have bad credit, do you know where you can go to get approved for auto financing? You have at least two options to choose from, and we can help you find a dealership that approves bad credit car buyers.
Types of Car Dealers in Seattle
If you're dealing with poor credit and have been turned down by a traditional lender, your next two options are to find either one of these types of dealerships in the Seattle area:
Special finance dealerships – Special finance dealerships work with subprime lenders that know how to handle borrowers with various credit challenges. Subprime lenders check your credit score and credit reports, but consider additional factors such as income, employment, and residency to qualify you. You can expect a higher than average interest rate and a down payment requirement, but you can improve your credit over time with a subprime auto loan, and possibly refinance when your credit improves.
Buy here pay here dealerships – Buy here pay here (BHPH) dealers work differently than special finance dealerships. BHPH dealers finance the vehicles on their lots in-house, meaning they don't use outside lenders because they are the lenders. It’s a one-stop shop where you can sign and drive all at the same place, and, many times, all in the same day. Most BHPH dealerships don’t run credit checks, so they base approval on income and down payment. Because they don’t check credit, they often don’t report timely payments to the credit bureaus, so you aren’t likely to improve your credit score with one of these loans. Just like subprime lenders, your interest rate is going to be high, although the down payment needed is usually larger than what you need for a subprime loan.
Tips on How to Get Approved for an Auto Loan
Need some pointers on how you can improve your car loan approval odds? Consider these four tips:
- Know your credit – Always know where your credit score stands and what’s on your credit reports. The FICO scoring model is the most common used by lenders, and you can check yours in many different ways. Some banks and credit card providers give customers free access, while your FICO score is also available for a small fee with FICO directly at www.myFICO.com or with any of three major credit bureaus (Equifax, TransUnion, and Experian). You can request your credit reports by visiting www.annualcreditreport.com, where you’re entitled to a free copy from each of the three major credit bureaus every 12 months.
- Budget and save – Know how much car you can afford ahead of time. Use your personal budget and our online calculators to get an estimate, but don’t forget to add tax, title, and license fees into your calculations.
- Try to get pre-approved – You may be able to get pre-approved for auto financing if you have a good relationship with a bank, credit union, other lending institution. It doesn’t hurt to try, and even if you’re turned down, you now know you need to look for financing elsewhere.
- Have a cosigner – A cosigner may be necessary for approval depending on the lender. But even if one isn’t required, having one could help you qualify for a lower interest rate, making your loan more affordable.
Stuck on Where to Look? We Can Help
No matter where you live in Seattle, or anywhere else in the country, Auto Credit Express wants to get you connected to a local dealer that can help you get approved for a car loan. We’ve been helping consumers in Seattle just like you for over 20 years.
Don’t get stuck driving all over town only to get turned down. Getting started is a breeze, just fill out our free and easy auto loan request form, and we’ll get right to work searching for a dealership near you.