Credit scores, ah. How does Buy Here Pay Here (BHPH) financing affect your credit? BHPH has the power to make or break your financial situation. So let’s take a funny look at how the buy here pay here near me you searched affects your credit score now, dear reader.
First and foremost, timely BHPH payments can help raise your credit rating. This is so because one of the critical components to determine your credit score is your payment history. Therefore, regular on-time payments can demonstrate to lenders that you’re a trustworthy borrower.
However, your credit score may need to improve if you make late payments or default on your BHPH loan. Your credit score is 35% based on your payment history, so even one late payment might lower it.
The interest rates should also be noticed. As I pointed out in my previous clever article, the interest rates for BHPH financing are high. So if you don’t take care, you can find yourself with a car worth less than you owe. This is known as negative equity and may also negatively affect your credit score.
But do not worry, my dear reader, as there are ways to lessen the harm BHPH financing will do to your credit score. First, before signing on the dotted line at BHPH, ensure you can afford the monthly payments. Then, contact the dealership if you need help paying your bills to see if they can devise a solution for you.
Additionally, monitoring your credit report to ensure all information is correct is a good idea. You can dispute any inaccuracies you find and have them deleted from your account if you find any.
You can successfully negotiate the world of BHPH finance with wit and money knowledge.