Having a low credit score makes it incredibly difficult to get approved for a car loan. While those with scores above 500 may still be able to find a loan with a subprime dealer, individuals who have scores of 480 or lower commonly find themselves out of luck in even the subprime region of lending.

How can a car buyer with a 480 credit score get a car, then? There are actually two options available: a Buy Here Pay Here (BHPH) or a Rent-to-Own (RTO) car dealership. These two types of dealers focus more on your ability to pay - not your credit.

Car Dealers That Can Help

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The largest difference between BHPH dealers and RTO car dealers is the length of the loan. Depending on your RTO contract, you stop making payments on the vehicle as soon as you turn it in, or you have the option of buying it at the end of the term. A BHPH agreement may be a longer term payment plan and you continue to pay until the vehicle is paid off.

What they have in common is the approval process, which consists of providing proof of income, residence, and a valid driver's license. As long as you have a steady flow of income and can afford the payments, you have a very high chance of getting approved for a vehicle.

Also, the dealer will typically arrange your payment plan around your pay schedule. This could mean weekly or bi-weekly payments, depending on your pay dates. However, be aware that due to the easier access of these loans, you will likely need to have a significant down payment ready.

While your vehicle selection may be limited to older vehicles, don't let that discourage you. See it as an opportunity to rebuild your credit so you can get the car you want in the future.

Credit Repair Through Alternative Financing

If getting your credit back in shape is a top priority, you will want to be careful of what BHPH or RTO dealer you choose. Because they don't have to work with finance companies, they aren't required to report your payments to the credit bureaus. Thus, many smaller dealers will not be able to help you in the credit repair department, while larger dealers may still provide that option.

Auto Credit Express has a large network of car dealerships all across the country that can provide you with the opportunities you need to restore your credit and get back on the road to success. Start today by completing the free and secure online application. See what we and our dealer partners can do for you.