You are looking for a brand new car but have poor credit and need help getting a loan. You don’t have to worry, friend. There are “Buy Here Pay Here (BHPH”) dealerships that may be the answer you need – go here. Let’s not rush to the nearest BHPH showroom with dollar signs in our eyes. Instead, let us talk to buy here-pay here miami about the mechanics of these types dealerships and how they can help you build credit.
First, BHPH dealer operate in a different way than traditional car dealers. Instead of working with lenders outside to finance their customers’ cars, BHPH dealerships offer in-house financing. This means they act as the lender. This can be an advantage for those who have trouble getting approved through traditional lenders.
The catch is that just because a BHPH Dealer offers financing, it doesn’t mean they will help you build your credit. You might find the reverse. Many BHPH dealerships won’t report payment information to credit bureaus. This means that even if your payments are on time and in full, it can only positively impact your credit score.
On the other side, BHPH dealerships often report to credit agencies and positively impact credit scores when payment are made on time. This is a good option if credit is a concern or you are building credit.
It is important to keep in mind that BHPH dealerships charge higher interest rates to traditional lenders. Therefore, it is essential to ensure you are able to afford the monthly payments prior to taking out a loan.
Is a BHPH Dealer able to help you build your credit score? It all depends. If the dealer reports all payments to the credit bureaus, and you pay all your bills on time, it can.