Bad credit is on the rise in Minnesota and across the US. An increasing number of people are resorting to buy here pay here dealers, which don’t require credit checks of their consumers. They make all credit decisions directly, so they can work with a wider range of credit-seekers. The dealer serves as both the lender and the dealer. However, these dealers can be hard to find. Often, the only way to recognize them is through signs that say things such as “we tote the note” or “your job is your credit.”
MN BHPH Requirements
Don’t worry about your FICO score. It’s rarely an issue. With that being said, there are two other criteria:
Income: Most dealerships do have a minimum monthly income threshold: $1500. Keep in mind, this is your income before taxes and other expenses are withheld.
Down payments: These are often required. As you’d expect, borrowers with low credit scores are more likely to miss payments, so dealers want to get as much money upfront as they can. You might want to go with the smallest down payment possible. A down payment does help mitigate the risk of negative equity, but those are also funds you can set aside for emergencies.
Don’t meet the minimum requirements? You can still apply, as long as you have someone to cosign.
Understanding Your Contract
The BHPH business is rife with repossessions. Avoid vehicles whose payments stretch your budget. You should also carefully read through your agreement with the dealer, especially the section on late payments and repossession. With an affordable monthly payment and solid understanding of your agreement, you may well avoid the irritation of a repossession.
Easier Approval through Non-BHPH Financing
You could hop in your car and drive around town, looking for a buy here pay here dealership, but wouldn’t that be a waste of time and gas? We’ll find you a dealership that suits your budget and needs. We get you approved to finance a car with no fees and no hassles. We don’t charge for this service, and there are no obligations.