Doug's Credit Center Blog

Buy Here Pay Here Car Dealers Are a Good Option for Bad Credit


If you have experienced bad credit problems either in the past or are facing financial challenges right now, it may be challenging to obtain the traditional automobile financing from a bank or credit union directly. People with very bad credit are able to benefit the most from buy here pay here car dealers found in their area. Most of these dealerships offer in-house financing and avoid the stringent bank policies that a bank or auto lender may require.

It’s also important to know that buy here pay here car dealers look past your credit history and often do not even utilize information from a traditional credit report. Keep in mind that there are certain forms of criteria you will need in order to qualify such as:

  • Be sure that you can prove your residency status. Ways you can do this is bring proof of a valid checking account, utility bill or drivers license with you when you apply for an auto loan. This is important because the lender will want to make sure you are established locally. It also adds an added layer of security for the lender just in case you happen to default on your payments.
  • Make sure you can prove that you have a solid and steady income stream each month. Your lender will look at your paycheck as your main source of paying the loan back. If you are not working or your work is inconsistent, you may not get approved for the loan. A co-signer within your household or immediate family may have to help you acquire the loan.
  • Another way to increase your chances of getting approved is to bring a down payment. Whether it be a 10 percent down of the balance, or a smaller amount in addition to a trade in vehicle, having something to put down in good faith will let the dealer know you are less likely to default on a used car auto loan.

Financing with Buy Here Pay Here Car Lots

Some dealers refer to this type of financing as flexible financing because the credit criteria is more laxed. Don’t be discouraged by obtaining a loan through flexible auto financing. There are benefits to this type of financing and it can really help you re-work your path to financial success.

  • Improved credit rating
  • Trade-in options
  • Easy payment options

Over time, making consistent and timely payments on your auto loan will help improve your credit score. Even if the lender does not report to the credit bureaus, you can still use your receipts as a payment history if you decide to apply for another loan in the future.

Most in-house finance dealers allow for auto trade-ins of your existing vehicle. If you are unable to make a down payment with cash, this is another way to add money to your overall loan amount. In most cases you can trade in your old vehicle for a later model vehicle in better condition.

Experience easy payment options. Weekly or bi-weekly payments can be made right at the dealership.

Utilizing online auto financing will allow you to get into a vehicle quickly and stress-free.


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