Do Buy Here Pay Here Car Dealerships Report to the Credit Bureaus?

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Even with poor credit.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - June 5, 2019

Buy here pay here (BHPH) car dealerships sometimes don’t report payments or loans to the credit bureaus. There are some dealers that do, but they’re not easy to come by compared to traditional and subprime lenders that always report payments. If you’re looking to improve your credit over time with an auto loan, you may want to consider financing through a subprime lender, instead.

Buy Here Pay Here Dealership Basics

BHPH dealerships are also lenders. Because of this, you don’t have to make multiple trips to separate places – you can find the vehicle you need and get financed at the same place. Since many BHPH dealers don’t run credit checks, it’s generally easier to get approved. Unless they tell you otherwise, the approval is based on your income and the size of your down payment instead of your credit.

As long as you have the income to pay for the car and the required down payment, they could care less about what’s on your credit reports. Make sure you bring in a computer-generated pay stub that shows your year-to-date earnings to serve as proof of income, or recent tax returns and bank statements if you’re self-employed.

The drawbacks to getting an auto loan through a BHPH dealership are that you may not be able to improve your credit over time, the vehicle selection is limited to what’s on the lot, and they only carry used cars. But if the type of vehicle you drive doesn’t concern you, or you plan on improving your credit in other ways, a BHPH dealer could be a viable option for you.

Subprime Lender Basics

Subprime lenders work through special finance dealerships, and know how to handle a number of bad credit situations. These lenders check your credit, but consider additional factors when qualifying you, including your income and down payment, to name a couple.

Just like BHPH dealers, you need to bring in proof of income and have a down payment ready. However, subprime lenders require you to bring in additional documents, including:

  • Proof of residency – A recent utility bill, in your name, listing the address on the application.
  • Proof of a working phone – A recent phone bill in your name. It can be a landline or contract cellphone.
  • List of personal references – You typically need a list of anywhere from five to eight personal references complete with full names, addresses, and home and work phone numbers.

Depending on the lender, they may even require you to have a cosigner. Even if they don’t, it doesn’t hurt to have one on hand just in case.

Need Help Finding Financing?

Now that you know the difference between a BHPH dealership and a subprime lender, are you ready to take the next steps toward getting the financing you need? If so, CarsDirect is here to help.

Not only can you research models on our new and used car search sections, we can connect you to a local dealer that has the lending resources you’re looking for. To get started, simply fill out our auto loan request form, and we’ll get right to work matching you to a dealership!

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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