Are you looking for a new set but are having trouble getting a car loan because your credit is not great? Don’t worry, my friend. “Buy HerePay Here” (BHPH), dealerships might be the answer. Let’s talk about buy here, pay here and how these dealerships can help you build your credit – read here.
First, BHPH Dealerships are different from traditional car dealerships. Instead of working alongside outside lenders to secure financing, BHPH dealer offer in-house financing. This means they act as the lenders. This can be a great advantage for those who struggle to get approved for a traditional loan.
But, here’s the thing: Just because a BHPH dealership offers financing doesn’t guarantee that it will help build your credit. It might even do the contrary. Many BHPH dealers won’t report your payments to the credit agencies. This means that even if everything is on-time and complete, it will have a positive impact on your credit score.
However, BHPH dealer reports to credit bureaus. They positively impact credit scores if they are paid on time. This is a great option if you are rebuilding your credit or have poor credit.
Keep in mind, however, that BHPH dealers charge higher interest than traditional lenders. You need to ensure that you can afford the monthly repayments before you agree to take out a loan.
How can a BHPH franchise help you improve your credit rating? It depends. If the dealership reports the payments to the credit agencies and you make all of the payments on-time, it can.