What is BHPH (Buy Here Pay Here)?

BHPH (Buy Here Pay Here) is a financing method used by auto dealerships. This financing method involves paying the vehicle in installments. This method is often used by people who cannot afford the full amount at once. The interest rates are similar to those of credit cards. Some buy now pay here arrangements have limits on the amount of the loan. The payment schedule is usually several weeks or months.

What is the easiest installment loan to get approved for?

BHPH dealers may not offer financing for people with bad credit. However, this type of financing may be available to you if you can prove your income and residence. The dealership will set a loan amount and show you cars that are within that range.

When buying a car, you should take the time to shop around for the best interest rate. Also, be sure you can make payments on time. Late payments can hurt your credit score and lead to higher interest rates or late fees.

Buy now pay here plans can be opened from the bank’s website or through the bank’s app. The lender may perform a soft credit check. This is not reported to the three major credit bureaus. Unlike a hard credit check, a soft check will not affect your credit score.

The first payment is due at the time of the purchase. The remaining payments are then billed to a debit card. The fees can be as high as 30% of the total purchase.

Some merchants offer BNPL plans without any initial payment. However, this may also come with high fees.