Buy Here Pay Here Seattle, WA

Car Loans for Poor Credit 197 48 Many people with poor credit do not understand their the difference between bank vs used car lot financing when it comes to buying a used car. It is true that the options vary based on severity of poor credit. Is your credit truly poor, or is it bad or really bad. The following table will help you decide.

Credit Rating	Credit Score
Excellent	760
Good	720
Fair	680
Subprime	650
Poor	620
Bad	580
Really Bad	520
No Credit	0

When your credit is poor lenders look at several factors to determine how much they will approve you for. In addition to your credit score, auto lenders for people with poor credit consider your ability to repay the loan, your job and location stability, your current debt load, and most important, your flexibility.

Ability to Repay the Loan

This one just makes sense; you have to be able to afford a car loan and insurance payment. When calculating this, lenders looks at several factors, even the historical maintenance cost of the vehicle you want to buy.

Your Job and Location Stability

Lenders prefer approving people with poor credit that have lived in the same area and have worked in the same profession for several years. People that move around a lot, and have had several short job over several years create a much higher risk to the lender.

Your Current Debt Load

Are credit problems behind you, are you in the middle of them, or are they behind you? It much harder to get approved through a lender if your right in the middle of your credit problems, or if your credit report tells them that you are about to declare bankruptcy.

Your Vehicle Flexibility

If you’re more concerned about what you drive and your friend, neighbors, and co-workers perceptions of your vehicle as a status symbol, than you are a rebuilding a good credit rating, than a poor credit car loan though a lender is probably not for you. We’ve seen many people get trapped in the cycle of credit problems by over extending them selves with a used car loan, at a high interest rate, for 60 or 72 month. If your truly concerned about rebuilding your credit rating the best bet is finance a cheap used car, for a short term of no more than 36 months. It may not be you dream car, but consider it a date, not a long term marriage. Once your poor credit car loan is paid off, you can move on to a more expensive car, at much better rates and terms.

Buy Here Pay Here

If you have really bad credit, short job time, a high debt ratio, and / or you move around a lot, chances are poor credit car lenders will not extend you a line of credit to buy a used car. That’s where buy here pay here car dealers come in. Many buy here pay here car lots approve auto loans without a credit check, it some ways it’s like renting a car, but at much lower payments.