No Credit, No Problem Dealerships

Get Car Financing
Even with poor credit.

By

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.


, - April 18, 2019

If you have no credit, can you still get auto financing? The answer is yes, you can. The keys are to work with the right lender and know how to qualify for a no credit, no problem car loan.

Dealers That Accept No Credit

Subprime lenders do check your credit score, so they typically aren’t going to approve you if you have no credit, but buy here pay here (BHPH) dealers are a different story. BHPH dealerships are both dealers and lenders, and they finance the vehicles on their lots in-house, which means you can buy a car and get auto financing all at the same place – often on the same day.

BHPH dealerships offer car loans to people dealing with no credit, and most don’t even run credit checks. Instead, they base approvals on your income and down payment. Each BHPH dealer is going to have different requirements, but make sure you bring in a copy of your most recent computer-generated pay stub showing year-to-date earnings to be your proof of income.

What to Expect at a BHPH Dealership

When you get to a BHPH car lot, you’re going to find it’s different than a traditional dealership. The vehicles you’re going to see could range from year-old models with few miles to older models with higher mileage. You never know what you’re going to find.

Because BHPH dealers don’t usually run credit checks, you can also expect to get a higher interest rate (usually in the double digits). As for the down payment, the required amount varies and often depends on the price of the vehicle you finance, but it can be made in cash, trade-in equity, or a combination of both.

You may also need to make payments weekly or bi-weekly, depending on your pay schedule, but many still offer traditional monthly pay schedules. Additionally, your payments may need to be made in person, which is where the buy here pay here name comes from. However, more and more of these places are accepting different forms of payment these days.

One last thing you need to be aware of is that you may not be able to improve your credit score with a BHPH auto loan. They might not report your loan or payments to the credit bureaus, which prevents this from happening.

Make sure you ask about all of these details before taking out a BHPH car loan. It never hurts to get as much information as possible ahead of time before making a big decision.

Looking for a Dealer to Work With?

If you don’t have any credit history, but need a vehicle to get around your day-to-day life, we want to get you connected to a dealership that can help.

At CarsDirect, we have a relationship with many dealers, including BHPH dealerships, and can help you find one in your area. With our assistance, you don't have to drive from dealer to dealer hoping they have a lender you can work with.

Our process is simple, free, and doesn’t put you under any obligation. To get connected to a local dealership near you for the bad credit auto loan you need, just fill out our car loan request form and we'll get to work for you!

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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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