If you have less-than-perfect credit and are in the market for a car, you might be stressing out about a credit check at the dealership. When traditional dealerships and banks run a hard check on your credit report, it can throw up permanent obstacles for buyers with common financial complications. However, there’s no need to stress: buy here pay here dealerships don’t let credit checks prevent you from getting the car you need.
Buying A Car With A Loan
Traditional lenders look at one thing, and that’s your FICO score. If it doesn’t meet their threshold, which is typically at least 650, then you will probably not be approved.
Your income doesn’t matter.
Why you missed past payments doesn’t matter.
Their formula is simple: the high credit scores win.
This leaves those with bad credit unable to purchase the car they need, but there is another way.
Can I Buy A Car With No Credit Check?
Even buy here pay here dealerships typically do run a basic credit check, but they don’t punish you for your credit history and they don’t make decisions based on your credit report. Instead, they focus on your ability to pay going forward. You might be wondering…how do buy here pay here dealerships determine my ability to pay? The answer is very simple: they verify your income.
In fact, proof of income, a bank statement, and proof of address is usually all you’ll need to get approved for a car loan at dealerships. So, why can a BHPH dealership approve loans when traditional lenders cannot?
One reason is that the dealer is also the lender, so any risk doesn’t involve a third party. That’s why the dealer doesn’t need the approval of an underwriter; all the risk is the dealership’s, so they can lend to anyone they want—and that includes buyers other lenders reject.
Applying for a Loan at a BHPH Dealership
If you’ve ever applied for a loan with a traditional lender, you know the process can be stressful. Filling out a long application, providing several back up documents, and waiting for approval by several people is a hassle—but BHPH dealers make it easy.
Here’s how it works:
- Fill Out a Simple Application: This can be done in person, and many dealerships have the option to fill out the application online.
- Provide Proof of Income: Most BHPH dealers will want to see your last two or three paystubs.
- Provide a Proof of Address: A piece of mail usually does the trick.
Why don’t buy here, pay here dealerships make decisions based on a credit check? They don’t deny loans based on your past credit or your credit score, so even if your score is 400 you can still qualify for a BHPH car loan.
This means they can be flexible and get you approved quickly. Most loans are approved the same day! So rather than a drawn out process, you can usually take care of the entire transaction in one visit.
How to Get Approved With A Bad Credit Score
Search for BHPH lenders near you. Once you click on their page, you’ll see whether or not they offer bad-credit loans. If you live near Oklahoma City, Victory Used Cars is a smart choice. Our in-house loans make it easy to get behind the wheel of a quality used car or truck. We’ve helped thousands of people get approved, and we’ll do the same for you.