So, you're in the market for a new ride and considering the buy here pay here route. It's easy, convenient, and a great way to get a car even if you have less-than-perfect credit. But before you start browsing the lot, Buy Here Pay Here wants to talk about one crucial question: does a buy here pay here dealership go on your credit report?
Short answer: it depends on the dealership.
While most buy here pay here dealerships report to credit bureaus, not all do. And even if a dealership does report to credit bureaus, they may only report to some of them. Before you sign on the dotted line, it's a good idea to ask the dealership if they say to credit bureaus and, if so, which ones.
If a dealership reports to credit bureaus, it will show up on your credit report as a "revolving account." This means that it will be included in your credit utilization ratio, which is the amount of credit you're using compared to the amount of credit you have available. It will also be included in your payment history, which makes up a large portion of your credit score.
Now, the big question: will a buy here pay here loan help or hurt your credit score? The answer is: it depends on how you handle the loan. If you make your payments on time and in full, it will positively affect your credit score. But if you miss payments or default on a loan, it will negatively affect you.
In conclusion, whether a buy here pay here or dealership goes on your credit report depends on the dealership itself. Make sure to ask if the dealership reports to credit bureaus and how they report it so that you can make an informed decision.