subject: How Buy Here, Pay Here Dealers Can Help You Fix Bad Credit [print this page] Many folks struggling with bad credit find it difficult to improve their credit score. This makes sense - if you already have bad credit, it's harder to get a loan which makes it harder to build up your credit score.
So if you're in a situation where bad credit keeps you from having an opportunity to improve your credit score or your bad credit is keeping you from making important purchases like a home or new vehicle, what can you do?
One possibility is getting a vehicle through a "buy here, pay here" auto dealer. Buy here, pay here dealerships help you finance a car even if your poor credit keeps you from getting a loan from a bank or credit union. Then, if you consistently make your payments, some buy here, pay here dealers will report your consistency to the credit bureaus, which helps to raise your credit score.
By regularly making your payments, the credit bureaus see that you can be trusted to make payments on time, which helps increase your credit score. As your bad credit improves, you will become more and more likely to get approved for future loans .
Of course, it is important to be alert when it comes to choosing the right buy here, pay here dealer. Not all of them offer to report your credit score, while others claim they will but never follow up on their promise. When choosing a buy here, pay here dealer, do your research to be sure that they truly will report your success to the credit bureaus.
On a similar note, people who have no credit can also benefit from buy here, pay here dealers. Many people who have never purchased on credit before find it difficult to get loans for homes or brand new vehicles. By buying a vehicle through a BHPH dealer, people with no credit can begin to build their credit scores too.
Overall, a buy here, pay here vehicle purchase can have a positive impact on your credit score as long as you choose the right dealer and consistently keep up with the payments.
