It is difficult for many people with poor credit to raise their score. It makes sense that if your credit is bad, you will have a harder time getting a loan. This in turn makes it more difficult to improve your credit rating.
What can you do if your poor credit prevents you from improving your score, or preventing you from purchasing important items like a new home or vehicle, read here?
A “buy here pay here” dealer is one option. Dealerships that offer “buy here, pay now” (or tote the notes) can help you get a vehicle even if you have bad credit and are unable to obtain a loan through a credit union or bank. Some buy here pay here dealerships will also report to credit bureaus your consistent payment history if you make them consistently. This helps improve your credit rating.
Credit bureaus will see you as a reliable payer if you make your regular payments. This helps to increase your score. Your bad credit will improve over time, increasing your chances of getting approved for loans in the future (such as home or car loans).
It is vital to choose the best buy here pay here dealer. Some dealers do not offer to send your score. Others promise it but don’t follow through. Do your homework before choosing a dealer that offers buy here pay here to ensure they will actually report the success of your purchase to credit bureaus.
People with no credit history can benefit as well from the buy-here, pay-here dealers. Those who’ve never bought on credit find it hard to obtain loans, whether for a new home or a brand-new vehicle. People with bad credit can start building their credit by purchasing a car through a BHPH dealership.
A buy here pay here car purchase will have a positive effect on your credit rating as long as the dealer is reputable and you make timely payments.