The main reason that consumers are denied a car loan from traditional lenders is because of a bad credit history. The reasons range from credit card balances, property repossession, late and missed payments of accounts, and other huge credit problems that they had in the past.
But what if you are in urgent need of a vehicle to be used out and about with your family every day? And commuting isn’t always the best solution especially if you have to send your little kids to school every day, take your elderly parents for hospital checkups regularly, go to the office during rush hours and other errands you have to accomplish that a car is already considered a necessity.
There’s a solution for every financial problem, and bad credit consumers always consider this as their best and last resort after being turned down by banks and other financial institutions that prioritize borrowers with good credit. Now if you have heard of buy here pay here, this financing allows you to make arrangements for a loan and pay your monthly fees directly to the dealership. When you purchase the car from buy here pay here, you refer to that as in-house financing. This allows you to choose from weekly, bi-weekly, monthly or semi-monthly, depending on your choice. If you want to know more why this is the best option for you, read on.
More Flexible Financing
The buy here pay here dealership is highly capable to provide bad credit car buyers with loans even if they are not qualified from lending in the bank. The difference is, when you loan from a bank to buy here pay here dealership, you have to pay for the interest rate. Car shopping through buy here pay here requires a higher interest rate because the risk to the financial firm is higher, but there’s a policy that they can provide their potential buyers with chances to take advantage of credit.
Zero to Low Down Payment Option
You can put up a down payment or none at all when you apply for buy here pay here CT car loan. But for BHPH, they pay the taxes of the bad credit customers up front. It’s preferable if you pay a down payment that is higher than the average to cover up the taxes. Additionally, a down payment can also help in protecting their financial interests. So when you give a bigger amount of money down, there’s a possibility that you will less likely default on your loan and you will more likely get a better interest rate.
Easy Car Shopping Experience
There are dealerships that offer uncomplicated processes. For instance, when you shop for a quality used car, truck or SUV, the dealership makes sure that you get your financing on the same day. If you are searching for other dealers, you can utilize the deal locator. On the other hand, there’s a network of dealerships that exposes the car’s age standards, financing and mileage. Thus, you are assured that the cars presented have clean and clear titles.
Simple Pre-Approval Process
Even if you have bad credit or no credit, there are lenders out there who are willing to lend you some money so you can choose and buy a car. By acquiring a pre-approval, you have a better position with your dealer because of leverage. You can easily apply for a pre-approval online and once you are informed about how much you can spend for the vehicle, you are given with several choices of vehicles. The choice depends upon your budget too.
Boost Your Credit Score
When applying for a loan from buy here pay here and you are satisfied with our service, you are gradually increasing your credit score levels. You can rebuild and improve your credit score if you pay your monthly dues on time and avoid frequent late payments. Just make sure that the Buy Here Pay Here dealer is reporting your loan and payment history to the Credit Bureaus.
Once you are approved for a buy here pay here car loan, you can determine how much you can borrow from the dealership. Thus, you can set a budget that is realistic and that you can afford to pay monthly aside from the fees and other expenses. Having a realistic budget prevents you from loan default.