NH "Buy Here Pay Here" Loans, can definitely improve your credit rating-  I have a lot of customers that have purchased vehicle's "in house" at other dealerships and make their payments, awaiting a refinance situation at a lower rate. This is great and ideally how it is supposed to work. These programs are in place to provide financing for vehicles that wouldn't otherwise be available but they only make sense in the light that they are building our customers to a place where they no longer need the programs. These programs are auto loans and should be reported to a credit bureau where every payment improves your credit and adds to your good installment history. Unfortunately most "buy here pay here dealerships" do not report to any credit bureau. This creates a really terrible situation where people take out an auto loan make all their payments on time and when it becomes time to purchase another vehicle or refinance to get a better rate they are unable to qualify. This is due to the fact that nobody knows they have been making on time monthly payments and paying their loan down. It means that they are in the exact same situation that they started in or possibly worse. It is not legally required that these programs report to a credit bureau. All our programs at the Nashua Used Car Superstore, due report to a credit institution. This insures that our customers will get credit for their payment that reflect on one of the 3 major credit reports, most report to all 3.


The three credit bureaus are Trans Union, Equifax and Experian. These bureaus provide detailed information about your payment history and other information about how much debt you carry and where you have lived, they may list a position you have held. This information is used to evaluate the risk you represent, and establish whether or not you will be approved for a loan, what amount, how long the maximum term will be, and the rate of interest charged. The credit bureaus also generate a score, this is a tool or metric used by lenders to establish what program or terms your able to qualify for. They use brackets with maybe A through F or 1-10. We have some lenders with as many as 99 different tiers or levels.



Installment loan history - This plays a major role in how great your credit score is and what terms you will qualify for. Good installment history plays an important part in the approval process. Even if your score isn't fantastic because you have a lot of unpaid collections you may be able to secure an approval. The rate may still be impacted by the score but there are lenders that weight installment history so heavily that even with a bad score you can secure a competitive approval based on your great installment history. They are concerned the amount of on time payment you have made ( on time as far as your credit bureau is concerned is not more than 30 days late) . They also will be looking at the time the accounts have been open and the balance in relation to what was initially borrowed.