Where to Find Auto Dealers Who Don’t Run Credit Checks

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.


, - May 21, 2019

If you have bad credit, or even no credit, you may be wondering where you can find a dealership near you that doesn’t run credit checks. You could drive around town and go from dealer to dealer, but CarsDirect connects car buyers like you to no credit check dealerships every day.

No Credit Check Dealers: Buy Here Pay Here

When you say you’re looking for a dealer that doesn’t "run" or "pull" credit, you’re really asking where a buy here pay here (BHPH) car lot is. BHPH dealerships aren’t like traditional or subprime lenders – they do everything in-house, and are the dealer and the lender. This means you could sign and drive all in one place, possibly in the same day.

Some of these dealerships don’t run credit checks, so you could have no credit history and still get approved for auto financing. Instead, these dealers base approvals on borrower income and down payment. As long as you have the income and the cash for a down payment, the dealership isn’t going to care what’s on your credit reports.

Drawbacks of BHPH Dealerships

While BHPH dealers can offer financing to those with little to no credit history, it isn’t a totally perfect solution to car buying. Because they don’t run credit checks, BHPH dealerships don’t typically report payments to the major credit bureaus. This means you can’t build or improve your credit score over time with one of these auto loans.

Other drawbacks include:

  • Higher interest rate – Your interest rate is going to be higher than average, too. You should expect it to be in the double digits, and this raises the overall cost of the loan.
  • Down payment required – A down payment is usually required when taking out a loan at a BHPH lot. How much is needed typically depends on the vehicle you choose and how much it costs.
  • Limited selection – Although not always a bad thing, you should be aware that you may be limited on your car choices. BHPH dealers only carry used vehicles, so make sure you check the history report of the one you pick and have it inspected by a certified mechanic before buying.

Find a Local Dealer Today

BHPH dealerships are great if you just need a car to get by and aren’t looking to improve your credit score. If credit repair is a priority, you may want to consider going to a dealer that does credit checks and is signed up with subprime lenders instead.

No matter which type of dealership you want to go to, CarsDirect can point you in the right direction. Our nationwide network of dealers has the lending specialists to help people in many types of credit situations, including no credit.

We can help you by making your search for a lender simple – just fill out our free, easy, and no-obligation auto loan request form, and we'll get the process started right away!

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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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