 TITLE: How Buy Here, Pay Here Dealer Financing Works CONTENT: Alternatives to Buy Here, Pay Here Financing\n--------------------------------------------\nAfter you've checked on your credit, there are a few different options you can choose without resorting to working with a BHPH dealership.\n### Wait and Improve Your Credit Scores\nIf you don't need a new car right away, take some time to work on building your credit before you start shopping around. Some tips include:\n*   Directly address the issues hurting your credit score.\n*   Get a credit card or use an existing credit card and make payments on time every month. Also, consider paying your balance in full every month to avoid interest, or at least keep your balance relatively low to maintain a good credit utilization rate, or the amount of credit you're using divided by the total amount of credit you have available.\n*   Ask a family member with great credit to add you as an authorized user on their credit card account.\n*   Avoid applying for new credit too frequently.\nOnce you've improved your credit, you may have a better chance of financing a car through a traditional dealership.\n### Get a Co-Signer\nMost traditional auto lenders allow you to apply for an auto loan with a co-signer to improve your chances of getting approved. A co-signer acts as a backup in case you can't make your payments, reducing the lender's risk.\nKeep in mind, though, that your co-signer will be equally responsible for paying off the loan, and the loan will show up on both of your credit reports. So make every effort to stay on top of the loan and avoid breaking your loved one's trust.\n### Consider Borrowing From a Local Credit Union\nCredit unions typically offer lower fees and loan rates and may be more open to lending to people with bad credit. If you're already a member of a credit union, ask about your eligibility.\n### Second-Chance Auto Loans\nSecond-chance auto loans are loans specifically designed to help people with bad credit get the financing they need. Instead of focusing on your credit, second-chance auto lenders typically look at your income and expenses, residency, employment stability, and other factors to determine your eligibility.\n### Online Auto Lenders\nBecause online lenders have lower overhead costs than traditional lenders, they can pass some of those savings on to their customers and accept borrowers with higher risk profiles.\nWhat's more, you can often get prequalified and see what you're eligible for without submitting an official application. END