Worried about financing a car in Federal Way, Washington, with a bad credit score or no down payment? You needn’t be. The good news is, we give you access to a huge selection of bad credit car dealers in Federal Way and across the nation. Each and every day, we help men and women in Federal Way get approved for a loan in spite of:
- Low Credit Score
- No Credit
It’s our number one priority. Ready to begin? Go here to submit your application.
Federal Way Car Dealerships That Finance Bad Credit
Bad credit doesn’t have to stand in the way of your new car. We work with dealers in Federal Way that want to give you a second chance at financing. As compared to a BHPH car lot, such dealerships are able to offer better loans. The dealer will review your credit and income to see which models you can finance. So as to steer clear of late payments or repossession, choose an inexpensive, dependable vehicle having payments amounting to 10% of your income or less. If you earn $2,683 monthly, this is a payment of $268. Submit an application to talk to a lending professional about how much you can borrow.
Better APR Rates for Federal Way Borrowers
APR rate is critical if you want to limit the amount you will end up paying for your vehicle. As an example, a car loan of $24,147, repaid in 60 months, would cost you the following:
- 3.50% APR: $2,210 in interest.
- 7.00% APR: $4,541 in interest.
- 11.00% APR: $7,354 in interest.
As is obvious, it’s vitally important that you secure the lowest rate you can. Let’s look at several techniques at your disposal.
- Credit Score: Obtain a copy of your credit report through a trusted provider, then file a dispute for any inaccuracy you discover.
- Down Payment: Larger down payments normally result in lower APR rates, as the loan to value ratio isn’t as high.
- Debt-to-Income (DTI): Carrying less debt can lead to a decreased rate of interest. Pay off what you can.
- Shorter-Term Financing: Longer loans are regarded as higher risk investments, so opting for a shorter loan could be to your benefit.
- Newer Vehicle: It costs less to finance a new or almost new vehicle–though pre-owned vehicles often cost less on the whole.
Buy Here Pay Here Car Lots in Federal Way, WA
Maybe you’ve thought of getting approved through a buy here pay here car dealer in Federal Way? These kinds of Federal Way bad credit car dealers don’t rely on banks or third-party lenders to approve their customers, so they can assist a wider range of applicants.
If you’ve got terrible credit, Federal Way buy here pay here car dealers tend to be the only real option, even though Washington subprime auto loans from credit unions and banks typically involve less expensive rates.
Credit Considerations for Federal Way Consumers
If your credit has quite a few blemishes, you may be worried that an auto loan will worsen it. You shouldn’t worry, though, as, financing a car can help you strengthen your credit. Your payment history is a primary part of the Fair Isaac scoring matrix, and an auto loan means 3 to 6 years of payments.
Late payments, meanwhile, can reduce your FICO score, and in a hurry! Of course, the benefits of a better score are massive, including greatly reduced interest rates and insurance premiums, and even more opportunities for refinancing existing loans.