Rebuilding Your Credit with a Buy Here Pay Here Car

Ah, the mystifying credit score. If you’re someone who has signed up for a credit monitoring service like Credit Karma, or have even checked in on your credit score using one of the main credit bureau websites, you have the ability to see how healthy banks think your spending, saving, and credit habits are. For something as invasive as the common credit score, it still functions as a deeply mysterious part of modern life. Credit scores are a reflection of the financial transactions that credit bureaus deem the most important. Mainly, this consists of how high your credit balances are, how many lines of credit you have out, and how timely you are with paying toward your financial obligations. It seems fair to say that in most instances this would be an accurate depiction of your financial worthiness, right?

In reality, the credit score is far more complex. This is apparent in the percentage of adults who do not understand how a credit score works. Nearly 32% of Americans are fuzzy on the concept of the credit score, and an even greater percentage have a lower than average credit score. Without understanding the basic concepts of credit, it is impossible to improve your credit score in a timely and effective way. One of the most influential factors on the credit score that many don’t know about is that not all financial accounts report the good things – only the bad. Things like new car dealerships, rental agreements, and other things you commonly pay for are not reported consistently like a missed credit card payment is. For those with less than perfect credit, this can hurt you.

This is where rebuilding your credit comes in, and this is something that the specialists at AutoNow in Wichita can help you with. By going over your monthly financial obligations and helping you pick out a car that you can afford to pay back, you will rebuild your credit in no time, paving the way for heftier investment opportunities in the future.

How Does the Repayment Schedule Work?

Each buy here pay here lot is different, but essentially, a buy here pay here car dealer will work with you to determine the best repayment schedule for you as a borrower. Have a certain date that you can’t make payments on? That’s something AutoNow can work with. Would you prefer for your car payments to be automatically made on the same day that the rest of your bill payments are made? That’s also something that most buy here pay here companies can work with.

The dates of the payments aren’t the only way that the repayment schedule can be customized. Buy here pay here car dealerships also typically work with your base monthly income to find a car on their lot that fits in with your financial needs. In summary – they help you make a sound financial investment that is practically impossible to fail at. All those on-time payments add up and rebuild credit scores quickly.

I’ve Been Denied Lines of Credit in the Past. How is This Different?

Lines of credit come from credit agencies whose jobs are to make sure that they get their investment back. Because they see a large number of customers each month, they also must make decisions in the most timely way possible. Unfortunately, this means either denying a perfectly capable potential customer their right to a loan, or asking that customer to pay exorbitant amounts back to them on their interest.

A buy here pay here dealership is a specialized lender, which means they have more time to better understand their customers’ financial situations. Buy here pay here dealerships are also dependent upon making car sales, so they are generally more willing to lend to you if you can prove to them in other ways that you will be able to make consistent payments. Most often this proof can be supplied by handing them income verification, references, and evidence of other financial obligations. This information will help buy here pay here car dealerships make the most informed decision about lending to you.

How Do I Know I’ll Be Able to Make Consistent Payments?

You know that you never want to be in a situation where you can’t pay someone back. For the lending party, this feeling is doubled. Sure, buy here pay here car dealers still need to sell cars, but they aren’t going to sell cars to customers if they don’t think that the customer is going to be able to pay them back. This ultimately leaves them with less money and with a less valuable car.

Although the application process is streamlined and relatively easy, it is set up the way it is so that customers and the company alike will never need to worry about their ability to pay back the amount of the car. At AutoNow in Wichita, we check over all the information provided to ensure that the offer we make you will eventually be paid back without a hassle to either of us.

How Does This Repayment Impact My Credit Score?

Buy here pay here car dealerships record your payments and report back on them to credit bureaus, much in the same way that a credit card company might. However, these payments are usually larger than payments like credit card payments, and therefore make a bigger impact on your credit score overall. The bigger the payments you make, and the timeliness of those payments, all impact your credit score over time. Essentially, they rebuild your credit in half the time that a traditional loan might, and with the added benefit of getting a new to you car.

You don’t have to be in need of a new car to utilize the lending options available at AutoNow of Wichita. We’ve helped thousands of people rebuild their credit by financing a used car at one of our lots. Stop by our Wichita location to get started with a new to you car and a new chance to quickly rebuild your credit with more benefits than ever before.