Bad Credit Financing Lenders

In many instances bad things happen to good people. If you are in a situation where you have bad or no credit and are looking to build or rebuild your credit you have several options.

Direct Lenders
To rebuild your credit you need to ideally deal with a direct lender. A Direct lender is exactly as it sounds, they offer loans directly to consumers. These types of loans are typically reserved for people with established credit history with a good or fair credit score. Consumers that are approved for a loan from a direct lender may browse for cars much like a buyer paying cash would, allowing them the flexibility to buy from any dealership they see fit.

Indirect Lenders
Indirect lenders are in many cases are affiliated with a car dealership(s). These lenders lend to buyers who purchase from the associated dealership, in many cases offering loans to people who less than perfect credit history, including bankruptcy, no credit, and bad credit situations.

Buy Here Pay Here
Bad credit consumers often turn to these dealership types because they have “special financing” options. However if you are looking to build or rebuild your credit history this is not an ideal situation. Buy Here Pay Here car dealerships do not work with a finance company and thus many do not report payment history to the 3 credit reporting agencies.

When buying from a Buy Here Pay Here (BHPH) dealership, the buyer needs to be ready to make weekly or biweekly payments as this is the traditional payment methods that many auto dealerships use.

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