If you live in Seattle and have little to no credit, you can still get a car loan. While you may not be able to get pre-approved by a bank or credit union, you can find dealerships that don’t run credit checks.
Buy Here Pay Here Car Dealerships
Subprime lenders check your credit, so if you’re looking for a dealership that doesn’t look at your credit history at all, you need to find a buy here pay here (BHPH) dealer.
BHPH dealerships don’t run credit checks unless stated otherwise. This means you could have no credit history at all and still get approved for auto financing. Instead of using your credit to determine approval, they consider your income, bills, and down payment.
Although the minimum income requirement varies, many of these dealers like to see an income of at least $1,500 to $2,000 a month before taxes. BHPH dealerships don’t care about where your income comes from, as long as you make enough, you’re likely to get approved.
In addition to income, BHPH dealers typically require a sizeable down payment. the amount of money down you need typically depends on the car you choose, but you can use cash, trade-in equity, or a combination of both to cover it.
Drawbacks of No Credit Check Car Dealers
While BHPH dealerships sound ideal for no credit car buyers, they’re not always the best choice. Sure, these dealers may approve buyers with no credit history, but that also means they usually don’t report loans or on-time payments to the three major credit bureaus. So, if improving your credit score is a must, you may want to reconsider a BHPH auto loan.
On top of that, your interest rate is going to be higher than average because they don't run credit checks, which raises the overall cost of the loan. Plus, your vehicle selection is limited to what's on the lot.
Some BHPH lots have a wider range of cars that are newer, but, for the most part, you’re going to be faced with picking an older used vehicle. Like with any used car, you should check its vehicle history report and have it inspected by a certified mechanic before buying it.
Need Help Finding a Dealer in Seattle?
BHPH and special finance dealerships are scattered all over Seattle. In fact, you may have seen these types of dealers around SoDo or the University District and not even realized it.
While you could drive around the city going from dealership to dealership, we can make finding the one that's right for you easier. Auto Credit Express matches consumers to dealers near them after they fill out our free and quick auto loan request form. No matter if you’re in Seattle or elsewhere in the state of Washington, we want to help you. Get started today!