Many people with poor credit find it difficult improving their credit score. This makes sense: if your credit history is already poor, it can be harder to get a loan.

What should you do if you are in bad credit?

One option is to buy a vehicle through an “buy-here, pay here” auto dealership. If you are unable to obtain a loan from the bank or credit union, a dealer that offers buy here, pays here (or “tote a note”) can help finance your car. In order to improve your credit score, you can make payments consistently and some dealers that buy here, sell here will report it to the credit agencies.

The credit bureaus notice that you make regular payments and are trustworthy enough to pay on time. This will help improve your credit score. As your credit rating improves, you are more likely to be approved later loans (such as a home or vehicle loan).

It is essential to be cautious when selecting the right buy here-pay here dealer. Some say they will report your credit score. Others claim that they will, but don’t always follow through. Be sure to do your research when selecting a dealer that buys here, pays here.

A similar arrangement applies to people with bad credit. They can also benefit buy here-pay here dealers. Many people have difficulty getting loans for houses or new cars if they have never purchased a vehicle on credit. People with no credit will be able to buy a vehicle from a BHPH dealer and build their credit.

If you do your research and pay the required monthly payments, a buy now, pay here vehicle purchase could have a positive impact upon your credit score.