Does buy here pay here mean there’s no credit check?

There are a lot of people looking for “no credit check car loans.”  These customers usually know that their credit is fair or poor, and may have been turned down for bank or credit union auto financing before.  They may have heard that dealer financing, or buy here pay here financing can get them approved even when a bankruptcy, repossession, late payment history, or foreclosure damaged their credit.

Mark’s Auto Sales Inc specializes in financing approval and has buy here pay here loans that have gotten customers approved since 1983.  Sometimes customers ask us, “why do we do a credit check for buy here pay here if you’re not looking at the credit score alone?”

While the credit score itself is not the basis of the loan approval with buy here pay here, the credit check provides some valuable information to process your application and get you used car financing.

Your Credit Check Verifies Your Identity and Application

The credit check provides a further measure of verifying a customer’s identity.  Just as you wouldn’t want someone to be able to get a loan in your name, the credit check provides an extra layer of identification and fact checking.  In the credit application the five year address history is compared to the address history on the credit report.

When you receive dealer financing, the dealer is trusting you to repay the loan that they extended to you.  Like any relationship, that loan is built on trust.  Details from your application, including repossessions or bankruptcies are verified with the credit report.  We approve lots of good people who have come across tough times and it’s shown in their credit.  The credit check completes the story and helps us find the budget and financing to help you succeed.

We May Still Be Able to Get You Bank or Credit Union Financing

Just because you weren’t approved for a car loan in the past doesn’t mean that you won’t be able to get bank or credit union financing now.  The banks and credit unions continuously change their approval guidelines based on the lending market.  Our sales managers have working relationships with dozens of local lenders and are aware of recent changes to their automotive loan programs.  There are multiple considerations at stake for bank or credit union financing, from your application to the vehicle itself.  If we can get you a better deal with a bank or credit union loan, we’ll do it. But of course, it all starts with a credit check.

We Report to the Credit Bureau

Not all buy here pay here dealerships report to the credit bureaus, but we are proud to say that we do!  Often times buy here pay here dealers only report on customers who are behind on their payments or a repossession.  While it’s more work for us, we’re proud to say that our customers who make on time payments benefit because those payments too are reported to the credit bureau.  As we can’t report just some customers’ credit history and not others, we must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for each customer that we extend buy here pay here financing.


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