Credit Check: Buy-Here Pay-Her credit report?

If you are looking for a new car, the buy here-pay here option might be the best choice. It’s simple, quick, and an excellent way to purchase a car even with poor credit. Before you go browsing the lot, buy-here-pay-here wants you to ask one important question: additional info?

It all depends on which dealership it is.

Although most buy-here, pay here dealers report to credit bureaus on a regular basis, not all do. A dealership may not report to all credit bureaus. Before you sign the dotted-line, ask the dealership whether they report to credit bureaus. If so, which ones?

A dealership that reports to credit bureaus will appear on your credit report under the “revolving accounts” category. This will mean that it will be included on your credit utilization ratio. This measures how much credit you are using relative to what credit you have. It will also appear in your payment history. This is a significant part of credit score.

Now comes the big question: Will a Buy Here Pay Here loan help or hurt my credit score? How you manage the loan will determine how it affects your credit score. It will positively impact your credit score if you make all your payments on time. You will be negatively affected if you make late payments or default on your loan.

It all depends on the dealer. So that you are able to make an informed decision, ask the dealership if it reports to credit bureaus.

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