How to Improve Your Credit Score with a Buy Here Pay Here Car
Bad Credit Auto Dealers in Indiana Are On Your Side
Traditional lenders, landlords, and even employers carefully examine your credit score and use it to gauge whether you’re trustworthy and smart with money.
Unfortunately, your credit score as reported by the major bureaus - Equifax, TransUnion, and Experian - doesn’t include any context. For example, your score might be 520, but the credit bureaus don’t explain that you have been working to change your life for the past year or that your mistakes were from when you were much younger.
In order to be approved for the nicer apartment or get a 9-to-5 job with reliable paychecks and a consistent schedule, you need to improve your credit score. Another thing nearly everyone needs is reliable transportation. So why not get a quality used car while you work on your score? Bad credit auto dealers can help with both. Here’s how.
Bad Credit Auto Dealers Don’t Check Your Credit Score
Unlike auto loans from a bank or credit union, in-house financing doesn’t consider your credit score. In fact, buy here pay here car dealerships don’t even waste time checking your credit report. Instead, they consider whether you’re capable of repaying a loan.
To calculate whether you can, they look at the pay stubs that you provide to prove your income. If you have a steady paycheck, you can qualify for a car loan without needing a strong credit history. Securing this auto loan for a buy here pay here car is your first step toward improving your credit score.
Buy Here Pay Here Dealerships Help You Budget
Because buy here pay here dealerships don’t care about your credit score and instead focus on your ability to pay back a loan based on income, they ensure that you don’t end up purchasing a car that you ultimately cannot afford.
When considering your income, they help you determine how much your car payment should be to fit into your budget and lifestyle. Their helpful sales team won’t show you vehicles that cost more than you can afford, which can help you focus on what really matters: getting a reliable vehicle that you like, that will get you from point A to point B.
These dealerships want to set you up for success so that you are able to build your credit and eventually own your used car once your payments are complete.
Make On-Time Payments for Your Buy Here Pay Here Car
Now that you have signed the purchase paperwork for your new-to-you car, you’ll need to make regular payments to the buy here pay here dealership. Follow your payment schedule as outlined in your purchase agreement.
In some cases, you will need to make once-monthly payments. Other loan agreements require twice-monthly payments. If you have questions about how often to make payments, contact the car lot directly. Making on-time payments is vital to improving your credit score.
Buy Here Pay Here Car Lots Report Your Loan to Credit Bureaus
Buy here pay here used car dealers report your payment history to the major credit bureaus. If you have been making on-time payments and your loan debt is decreasing as scheduled, the credit bureaus take note and raise your credit score.
You can watch your score increase if you request your free annual credit report, or if you have credit monitoring through your bank or other company.
What If Your Payments Are Late?
Just as a buy here pay here car loan can help increase your credit score if you’re responsible for your payments, it can also drop your score if you’re irresponsible, just like any other loan you take out. If you have made late payments or missed payments altogether, your car dealer will report that, too.
The information that the car lot shares with the credit bureaus is ultimately up to you and your actions. As long as you’re responsible and make on-time payments as outlined in your loan agreement, a buy here pay here car can help you improve your credit score in as little as a few months.
If for some reason you can’t make a timely payment, reach out to the used car lot where you purchased your vehicle. Because they extended in-house financing, they could come up with a plan to keep you on track with your payments. Be proactive in the event of temporary financial hardships by requesting an updated payment plan to help protect your increasing credit score. This shows how responsible you are and that you are doing everything you can to pay on time.
Find a Buy Here Pay Here Car to Get Started Improving Your Credit Score
If you’re ready to change your life and watch your credit score rise, buying a used car, truck, SUV, or minivan from a reputable buy here pay here dealer could be exactly what you need. Find one in your area of Indiana to get started.
