Does buy here, pay here financing hurt my credit score? 

Finding financing to buy a car, truck or SUV can be a steep hill to climb under the best of circumstances. People who find themselves in a less-than-ideal credit situation may very well have an even more difficult time successfully getting a car loan. There are some things that can be done to rebuild credit, but that process can take a while. Third Coast Auto Group is what is known in the industry as a buy here, pay here dealership – meaning we largely handle financing in-house. If you’re wondering, ‘Does buy here, pay here financing hurt my credit score,’ our team has some answers for you. Let’s take a look at a few common questions our team gets asked each week. 

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The simple answer to the original question, ‘Does buy here, pay here financing hurt my credit score,’ is, no, it doesn’t. A so-called ‘hard’ credit check isn’t run by a buy here, pay here (BH/PH) dealers, so the various credit reporting agencies (Experian, TransUnion, Equifax) aren’t really involved in the process. Some BH/PH dealers don’t report on-time payments to the credit agencies. While this may not be ideal for rebuilding credit, if someone falls behind on payments, a repossession may not actually show up on a future credit pull.  

How does buy here, pay here financing work? 

The buy here, pay here model financing model used at Third Coast Auto Group is pretty simple. Basically, a customer chooses a vehicle, and they make their payments directly to us instead of a bank, credit union or third party financial institution. This gives our finance team quite a bit of space to work toward getting people the vehicle they want. 

Is buy here, pay here financing my only option if I have bad credit? 

There is no point in sugar-coating the fact that people with low credit scores are going to have a tough time getting a car loan. However, that is not to say there are no available options. People with a low credit score should also look into some of these options: 

• Find a trusted co-signer 
• Apply for a loan with a local credit union 
• Look for a ‘Second-Chance’ loan program 
• Research online lending options. 

If you need additional help finding a safe and reliable vehicle, as well as a way to pay for it, make an appointment with a Third Coast Auto Group product expert today.