Establish Credit History with a Buy Here Pay Here LoanFirst time car buyers: get your car and good credit
In-house financing, like Finn’s Discount Auto offers, offers the convenience of purchasing a car and setting up loan payments in one visit. While interest rates can be higher at Buy Here Pay Here than at traditional car dealerships, for people who don’t have a credit history, it’s a way to not only buy a car, but also establish credit. Those without any credit history are referred to as the “credit invisible”. There are millions of people in the United States who have no credit score what-so- ever. This can cause all sort of obstacles in life. Without a credit score, it can be difficult to rent or buy a home, refinance a student loan, and get a credit card. It may even impact you getting a new job.
The main way to become credit visible is to open an account for six months or more, and you must have one account that’s reported to credit bureaus. This can be a chicken-or-the-egg situation – if you don’t have any credit, you can’t get a loan or credit card. With no credit card or loan, you can’t develop credit. That’s where Buy Here Pay Here can help. People with little credit history can not only borrow the money to buy a car, but your timely car payments will be reported to credit bureaus and this will build a good credit history.
You want to approach taking out loans in a clear-eyed manner. You should borrow only what you can pay off each month. Also, make payments on time, and if you pay your car loan off early, you will save in interest. So if you need to establish credit, a Buy Here Pay Here Loan can work for you.