Your credit is in the gutter, and conventional lenders won’t give you time of day. You do, however, require an automobile; what then? Now enter buy here pay here no credit check dealerships, where credit checks are sometimes disregarded and financing is handled internally. Sounds like a life saver, then. Not too quickly, though.

Can BHPH Actually Help Your Credit?
The brief response may be possibly. Some BHPH dealers provide reports to credit bureaus since they finance your loan directly and help to consistently raise your score with on-time payments. The hitch is that not all dealers document payments. Should they fail, your efforts will not significantly improve your credit. Ask before you sign a contract.

The Price of Easiness
BHPH dealerships fast approve buyers but at a high cost. Interest rates are sometimes sky-high, and payments are usually needed monthly or bi-weekly. Miss one; your automobile may be taken back more quickly than you could say “bad credit.” In addition, BHPH lots can feature older, high-mileage cars with mechanical problems; so, be especially vigilant before making a purchase.

Is Your Move the Correct One?
BHPH can be a temporary fix if you have few choices and absolutely need a car, but it’s not the best approach to restore credit. One better strategy? To raise your score initially, look at credit unions, subprime automobile lenders, or secured credit cards.

Should you decide on BHPH, review the fine print, make sure they record payments, and negotiate terms. A automobile ought to be a step forward rather than a financial blow-back.

Although BHPH isn’t a miraculous cure at the end of the day, with the correct approach it can be a stepping stone towards improved credit and a more safe financial future.