Buying a vehicle may seem like a difficult task for those with bad credit, but there are options available. Some car dealers specialize in financing people with poor credit. These dealers, also known as dealers buy here pay here near me dealerships, offer loans for car buyers who may have a difficult time getting approved.
Can you get a loan with a credit score of 480?
The first thing to do is check your credit report. Then, you can shop around for a vehicle. If you cannot get an auto loan from a bank, try to apply for a personal loan from a friend or family member, or check with a local bank. You may also be able to get approved for a no credit check car loan.
If you are approved, the dealership will determine how much you can borrow. It may require you to pay weekly or bi-weekly. The dealership may try to sell you a warranty or GAP insurance policy as a condition of the loan.
BHPH dealerships are often known for their high interest rates. You may pay as much as twenty percent on a buy here pay here loan. This is much higher than the interest rate on an auto loan at most banks. BHPH dealers may also try to charge additional fees.
Some BHPH dealers may report your payments to the credit bureaus, but not all do. You should contact the dealer to find out whether it reports to the credit bureaus. The website of the dealer may also have a statement about whether it reports.