Will Buy Here Pay Here Financing in Spartanburg Hurt My Credit Score?

A buy here pay here in Spartanburg, South Carolina is just another lender in the auto market. And your credit score is affected in the same way as financing with any other conventional creditor like a bank or credit union. Your credit score is not affected in some special way just because you are opting for buy here pay here financing. Neither do credit score record-keepers value buy here pay here credit less compared to other debts. In short, your credit score is not hurt if you finance with a BHPH dealer. In fact, such dealers enable poor credit score holders to buy used cars without the need for a co-signer or any other collateral.

Why does my credit score drop immediately after BHPH financing?

Most people equate the immediate drop in credit score to buy here pay here financing but something similar would have also happened if you had financed from a bank. Once you buy a used car from a Spartanburg buy here pay here dealership, you add another debt to your existing portfolio. With the income remaining the same, your creditworthiness naturally plummets for the time being. However, with timely payments, your credit score can improve. Family Auto reports your credit payments to the respective authorities and your score increases with time.

All buy here pay here dealers help to improve my score then?

Unfortunately, not all buy here pay here dealerships report your monthly payments to the respective authorities. As the dealers deal with only bad credit score holders, most do not feel the need to collaborate with the authorities. This way, your timely monthly payments do not show up on your credit report and your score remains unaffected. Your future loan prospects remain the same.

Family Auto, however, is an accredited financing business. We are a buy here pay here in Moore, SC, who diligently reports all your credit payments to help you improve your credit score. If you are financing your used car and working hard to make the monthly payments, we believe that you deserve to have your credit score improved.

What if I miss my monthly credit payments?

This is the only instance when your credit score might get hurt during buy here pay here financing. But the same is true with banks and credit unions as well. Missed monthly payments mean a default on your loan, and that goes on to show all your future lenders that your creditworthiness is still poor. Even Spartanburg buy here pay here dealerships who do not report your monthly payments can cause your credit score to plummet as these dealers hire a repossession company to bring back your used car and the third-party firm reports your default.

The best way to avoid repossession, and the consequent effect on your credit score, is to go for affordable used car sales in Spartanburg, SC. And by affordable, we mean that you design your financing in such a way that your income always covers your monthly credit payments. At Family Auto, you can choose a used car of any price bracket from our vast inventory. And then pay a high down payment by trading in your old car. Limit interest payments by opting for our 3-year loan plan and set the date of monthly payment right after your pay check date. Family Auto has deals that keep you immune to credit score fluctuations. When you finance with us, your life and your score only get better.