Car Loans with Bad Credit – Cincinnati, OH

Buy Here Pay Here Risks vs Rewards

With many things in life, it can be easier to figure out the best solution to a problem when you weigh out the risks and rewards of a given situation. For example, when we look at Buy Here Pay Here financing and loans, there are plenty of times when this kind of a loan is not a great choice. If you have good or great credit and you can qualify for a loan with lower interest, for example, then you should almost always go for that one. In general, however, unless you are in a situation where there is an absolute and clear answer, you should consider the risks and rewards of a potential solution to your problem. Let's take a look at some of the risks and the rewards that you should keep in mind regarding BHPH loans as you consider the best way to afford your next vehicle.

Risk: Higher Interest Rate

Arguably the most glaring risk when it comes to accepting a Buy Here Pay Here loan is the fact that it will likely have a higher interest rate than loans from a bank or similar lender. While it is easy to feel like this is unfair or simply the dealership is trying to take advantage of people, in reality, this is just the way it works for anyone with a low credit score. Lending money to someone that does not have a proven track record of paying back loans on time is risky, and the higher interest rate is the best way for a lender to cover that risk and not ultimately go out of business. While BHPH loans almost always have higher interest than loans for someone with good credit, they can still vary from one dealer to another. Some may try to gouge customers while others are more reasonable, so be sure to pick the right dealership, like us.

Risk: Stricter Terms on the Loan

Because of the uncertainty involved with lending money to someone with poor credit, the terms and conditions for the loan are often stricter than what you might find in a loan from a bank. For example, BHPH loans often have to be paid every two weeks rather than once a month, and they may have to be paid in cash rather than with a check. You might also have to make payments in person at the dealership the loan is from, and there could be less wiggle room for late payments. The important thing to remember is that all of this information will be given to you before you sign anything, so take your time to consider the terms and make sure they will work for you. If you shop with us, however, you will find that you can pay your bills to us online as well as at the dealership.

Risk: Limited Vehicle Selection

Although this can also vary from one dealership to another, in general, a Buy Here Pay Here loan will usually come with more limited options for vehicles. This is not due to malice by the dealership but rather the reality of the loan. BHPH loans tend to cover less than a loan from a bank to someone with great credit, so you will not be able to afford high-value vehicles or the most expensive models. Picking the right dealership is important so that you still have excellent vehicles to choose from even while staying within your budget.

Reward: Guaranteed Financing

One of the major upsides to choosing Buy Here Pay Here financing is, of course, the fact that you can get financing at all, even if you have bad credit. In fact, with most BHPH loans, you are essentially guaranteed financing as long as you have a current address and proof of income. There is usually no credit check involved at all, so no matter how bad your credit is, as long as you can show that you have the ability to pay the loan back, you can be approved quickly and easily. Since you begin shopping for a car at a BHPH dealership with figuring out your financing, this is all resolved right away so you can focus on finding the right vehicle.

Reward: Help Rebuilding Your Credit

Not only are you pretty much guaranteed a loan with Buy Here Pay Here financing, but it can help you improve your credit score. There are two keys to taking advantage of this: make sure the dealership you choose reports your payments to major credit bureaus (which we do) and always make your payments on time. Late payments can harm your credit score, while making your payments before or by their due date will positively affect your score. It might take some time, but over the course of a BHPH loan, you can significantly improve your credit and make it much easier to get your next vehicle.

Reward: One-Stop Shopping for a Car

Even though we are a car dealership, we understand that shopping for a vehicle is not everyone’s idea of a good time. When you have rough credit, this can be made much worse by stress and anxiety over the financing process and whether you will be able to get a good car. With a BHPH loan, however, not only is that anxiety eliminated, but you also do not have to worry about dealing with any kind of third-party lender. With everything handled here at our dealership, we make buying your next vehicle as simple and fast as possible, so you can get everything done on your time and get back to living your life.

Reward: Knowing Your Lender

This might seem strange, and for some people, it may not be a major perk of getting a Buy Here Pay Here loan, but knowing your lender is actually quite valuable. Even people with good credit often get their loan from some faceless bank or lending institution that they never directly interact with. When you choose a BHPH loan, however, you know that you are working directly with the people who are overseeing every aspect of your financing. There is something to be said for being on a first-name basis with the folks you are borrowing money from, and having that kind of human connection can be quite valuable.

Reward: Building a Relationship With a Dealer

Finally, and this is something we have already touched on a bit, getting a BHPH loan means you are building a stronger, lasting relationship with your car dealer. As you pay off your loan, build up your credit, and enjoy your vehicle, you are moving toward your next vehicle and your next car-buying experience. So when it is time to get your next car, truck, or SUV, you already know the people who you have been working with, and they know you too. This kind of personal relationship makes shopping for a vehicle a lot easier and can really help ensure that you get the right car with everything you need.

McCluskey Automotive: The Better Kind of Used Car Dealer