Bad Credit Auto Loans in Washington State (WA)

Having trouble getting approved for financing due to bad credit? You’ve come to the right place! Many dealers and finance companies now have special finance departments that support consumers with bad credit, and we make it easy to get approved. All you have to do is apply online, and our dealers and lenders compete for your business, thereby maximizing your odds of being approved. We’ll email you your own personal login to our approval hub, where you will be informed of your approval status in as little as 5 minutes.

Washington State Auto Finance Rates for Bad Credit

Steeper interest rates are to be expected when your credit score is 620 or less. Individual interest rates vary widely based on many different factors, including your lender, FICO score, loan type, repayment term, and other criteria. However, we can give you a range of rates based on our experience in the industry.

FICO Used Vehicle APR New Vehicle APR
660-689 11.1% 7%
620-659 15.4% 10%
590-619 16.6% 14%
500-589 18% 15.6%

Please note that these rates are only approximations, and the actual rate you’re quoted by a lender or dealer may be vastly different from what you see here. If these rates seem high, they are.

Ways to Minimize Your Interest Rate

There are a number of things you can do to reduce the total interest you end up paying.

  • Clean up your credit. A large percentage of American consumers have errors on their credit reports, many of which are score-reducing. Fortunately, you can dispute such errors.
  • Choose 36 or 48 month financing. The shorter your loan, the less you’ll pay in interest. The monthly payments will be higher, but you’ll spend less in the end.
  • Put money down. A down payment will help reduce the size of your loan, and thus the amount of interest you pay on it. Twenty percent is ideal. Remember that trade equity can put toward this as well.

Minimum Qualifications

  • Valid Washington drivers license.
  • Annual income of $18,000.
  • Gainfully employed for no less than 1 year.
  • All bankruptcies discharged.
  • No repossessions in the past year.

Financing a Used Vehicle

This varies from lender to lender. However, we’ve listed several of the common requirements below.

  • Vehicles may be new or used.
  • Mileage of 75,000-100,000 miles or less.
  • Vehicle no more than 6-8 years old.
  • Minimum loan amount of $7500-10,000.

Additionally, you may have to buy your vehicle from a lender-approved dealer.

Down Payment Advantages

Unfortunately, down payments are often a requirement when financing a car with poor credit. Be that as it may, down payments have several advantages:

  • They boost your chances of being approved.
  • They allow you to borrow less.
  • They allow you to pay less in total interest.
  • They reduce the likelihood of you being upside down on the loan.

Some dealers do allow buyers to finance vehicles with no down payment. If your loan officer or finance manager offers you this option, commit to driving the vehicle until it’s fully paid off, in order to avoid a negative equity situation.

How Will Such a Loan Impact My Credit Score?

As long as you make all of your payments on time, a loan like this can improve your credit. Creditors will begin seeing you as a more responsible applicant, which means lower annual percentage rates and better terms on future loans. As a result, it’s best to finance a reasonable, economical vehicle. In order to keep your payments low, commit 10% of your income to your car payment, at most. People in Washington, on average, make $2,540 monthly. This means a payment of $254 per month would be reasonable. This is simply an average, of course, but it should give you an idea of how to calculate a reasonable monthly payment.