Rochester, NY drivers who have a challenging credit history may find the vehicle financing process to be a daunting one, leading them to consider Buy Here, Pay Here dealerships. A common question that we receive here at Mike Anderson Chrysler Dodge Jeep® RAM of Rochester is, “Does buy here pay here affect your credit?” While this method can be a path to vehicle ownership, it’s also important to understand how it affects your credit score — here’s an overview from our finance professionals.
How Buy Here, Pay Here (BHPH) Works
Unlike traditional dealerships such as ours that arrange vehicle financing through external banks and credit unions, BHPH dealerships act as their own bank, with in-house loans. They often don’t perform a hard credit check, which makes approval easier for people with less-than-ideal credit. However, the trade-off is that these loans often have significantly higher interest rates and a smaller selection of vehicles.
How It Affects Your Credit Score
A traditional auto loan, with its history of on-time payments, is a great way to rebuild your credit score because this activity is reported to the major credit bureaus. On the flip side, many BHPH dealerships do not report on-time payments to these bureaus. According to the Consumer Financial Protection Bureau, some dealerships only report negative information, such as late payments or repossessions.
A Better Path to Rebuild Your Credit at Our Dealership
Here at Mike Anderson Chrysler Dodge Jeep RAM of Rochester, we offer an alternative to the uncertainty of traditional BHPH models. We offer a flexible in-house financing program that’s like Buy Here, Pay Here, but better. Our team works to ensure your payments can help you build credit while offering transparency and trusted support throughout your purchase experience.
For a financing solution that can help you rebuild your credit score, speak with the experts here at Mike Anderson Chrysler Dodge Jeep RAM of Rochester. Our experienced finance experts are here to help.
