Bad Credit Car Loans in Washington

It happened again. We had a couple apply for an auto loan at www.WashingtonAutoCredit.com exactly 2-months ago. We were honest with them about their vehicle options, and they decided that they wanted to try other dealers because we let them know that a seven passenger SUV was not going to be possible for them without A LOT of money down. You see these customers, we will call them Mr. and Mrs. Unrealistic, failed to realize that with their credit (they had recently filed for bankruptcy) their options will be limited by the lenders that would actually consider them for a loan.

A funny thing happened yesterday, the Unrealistics called us to let us know they were ready to look at their REAL vehicle options again. You see, another dealership had told the Unrealistics that they could buy a certain SUV. The other dealer even contracted the Unrealistics on the SUV, and even let the customers think they owned it for about 3-days. Then the dealer called the Unrealistics to let them know the car needed to be returned. The other dealer was not able to get the Unrealistics approved for an auto loan. By the time the dealer called to tell the customers the bad news, the Unrealistics had shown their friends, neighbors, and relatives the new car. Pretty embarrassing, huh?

I hate to say it, but a lot of the time it is better for customers like the Unrealistics to go through this. For many people, it takes this type of frustration, and embarrassment to appreciate the honest, straight forward technique we use at www.WashingtonAutoCredit.com.

When you have bad credit, you do not have all of the options that people with good credit do. It is important that you deal with someone that is willing to explain all of your options, and that you are willing to consider them. Even if the options are not what you were hoping for.

Paying your bills late is like triggering the trip wire on a land mine when it comes to debt management. A cash advance is one way to avoid a potentially expensive accident that is completely avoidable. When you pay a bill late, the lender normally charges a late fee of anywhere from $30 or more dollars and adjusts your interest rate upward on variable rate loans. That’s not the end, though, you will also potentially get a black mark on your credit report that can drop the score at a time when lenders are raising their score requirements. This can lead to problems getting additional credit or leave your profile with a ding. There are so many different people checking credit scores in the market, however, and not all of them are lenders. If you are looking to rent instead of buy, the landlord will take a peek too to decide if they will rent to you. If you are getting a sensitive job with cash handling, they often will check to see if you are having financial difficulties.

A cash advance is an easy way to avoid all these troubles. They only require that you are gainfully employed and they do not check your credit records. By not tripping the deadline wire, you can save the late fees and the additional increases in your rates. This can help you get out of debt by pushing your momentum forward instead of stalling out with bigger problems in the future. If you want to get out of debt and stay out of debt, then don’t pay your bills late. The payday lending industry fills the niche that allows people with poor credit to get a cash advance to keep them from triggering bigger expenses down the line, just because they missed a deadline. In good money management, you should know when all your bills are due and pay them on time, even if that means you have to get a little extra cash from a lender to do it.

Do not let something like this cost you more than it should!

Making the right choices about your auto insurance could prove vital to maintaining financial stability in the future. If you are financing your vehicle you will need full coverage insurance. The bank will require this. If you aren’t financing, you will need at least liability coverage but should consider more comprehensive insurance. Better coverage may cost less than you think per month, and it may save you a ton of money in the future.

Liability pays to fix someone else’s car if you are at fault. Collision pays to fix your car if you are at fault. Comprehensive pays to fix you car for non-accident related damage like vandalism or storm damage. Uninsured Motorist Coverage pays to fix your car when the at-fault driver does not have liability insurance.

Your Deductible is the amount of money you pay before the insurance company starts to kick in per incident for collision and comprehensive claims. If you choose a $500 deductible and cause $750 worth of damage to your car, you pay the first $500 and the insurance company pays the last $250. If you choose a $250 deductible in the same situation, you pay the first $250 and the insurance company pays the last $500. Lower deductible policies cost more per month, but the difference is usually minimal. Many lenders limit you to a maximum of $500 deductibles for comprehensive and collision coverages. Consider even lower deductibles.

Repair shops require full payment before they release a vehicle. Many people find themselves between a rock and a hard place when they can not get their car back until they pay their deductible, but need their car to drive to work to earn the money. Some people fall behind on other bills and risk their credit score so they can get the car out of the shop. Could you continue to make your car payment if you had to shell out $1000 all-of-a-sudden to get your car repaired? Would other bills suffer? Would this harm your credit possibly costing you more in interest on the next loans you take out?

If your vehicle is only worth $500 to $1000 you probably do not need full-coverage insurance. Most of us need full coverage because we have loans on our cars. If this is you, get insurance quotes for a variety of coverages and choose an option that will really save you money in the long run. No one can know when an accident may occur. We can not plan for how often we will be out that $1000 deductible, but it may pay big to opt for the better coverage when purchasing insurance.

At WashingtonAutoCredit.com, we want to help you make smart financial decisions in all aspects of your life, not just auto loans. Please consider WashingtonAutoCredit.com for the help you need to get your next car loan.

Almost everyone does the same thing, we see nice things and we want them. We tend to stretch to obtain the newest clothes, the biggest house, the nicest car. Many people are often so concerned with buying the best in life, that they loose sight of the big picture. Trying for the most expensive vehicle a car salesman will sell you often leads to regret later.

Lenders today are financing cars for longer terms with less (or even no) money down. This makes it easier for us to buy more expensive vehicles while still affording the monthly payments. The current housing crisis is because of similar lending guidelines. I do not mean to say that these loans are necessarily bad things, but they are not ideal for every situation.

Most people trade their vehicles in every two to three years. If this is you, the longer term auto loan with no down payment may not be for you. When you trade, you will still owe more on your auto loan than you can get for trade-in value. Then you either need to put enough money down to cover the negative equity or roll the negative equity over onto the new car loan. Do that a few times and you will not be able to trade out of the next vehicle. In a shorter term loan, or with a significant down payment, you may even have positive equity when you trade it in.

On the other hand, if you keep your vehicle for six to ten years you will have it paid for by the time you go out looking for your next car. In this case, the longer term loan may work out for you.

If your income fluctuates and is unpredictable, such as commissioned sales, the longer term loan may make sense for you. In this case you should plan on making the larger payment associated with the shorter loans every month. Then, if something happens and you either make less or need to spend more one month, you can make the smaller payment and still be current with the bank. Be careful not to fall into the habit of paying the small payment too often or it will become all too tempting to only make the minimum payment every month.

Consider purchasing something you can pay off in four or five years (or less) and think about putting some money down when you buy. If you will only settle for a very expensive vehicle, please think about the big picture. Put some money down or plan on keeping it for several years so you do not end up trapped by your negative equity.

For help obtaining a great car loan, call our auto loan specialists toll-free at 888-300-3502, or visit us at www.WashingtonAutoCredit.com