Bad Credit Kings

Buy here pay here car lots can be an advantage for some buyers in today’s economy. Buy here pay here lots have some advantages in the used car market that can help even the credit challenged get approval for a used car loan. If you have poor credit, no credit or have low income you can probably get a loan at a buy here pay here lot. As long as you have a down payment and can prove through your job or other income that you can make the payment you can get financed for a car.

Advantages for buy here pay here car loans can include approval for the credit challenged who have had poor credit scores, foreclosures or bankruptcies on their credit ratings. A poor credit rating could keep you from getting a bank approved car loan. Buy here pay here lots can offer you an in house financed loan or a loan through a higher risk loan company. The used vehicle title is held as the collateral until the loan is paid off.

Disadvantages to a buy here pay here lot could include loan rates, credit reporting, higher down payments on some models and warranty. Loan rates will normally be higher for a buy here pay here lot than a large dealership. Buy here pay here lots normally may not cooperate with the three major credit reporting bureaus so you may not be increasing your credit history. Statistics can be found at http://www.creditreport.com/creditscores/creditratings/average-credit-scores.aspx that will give you credit scores by state.