Consumers applying for auto loans with poor credit often fall victim to the "buy here, pay here" offer. This is when those in need of transportation sign a loan for a new car on the spot, only to default on their payments down the line, The Cap Times explains.
These individuals with poor consumer credit reports
are often either unable to afford a vehicle or can't obtain a typical loan because of their marred credit history. However, one company, CarHop, has been changing the game since 1996, offering to match customers up with a car they can afford while providing necessary financing. What's more, about 80 percent of CarHop customers saw their credit scores improve after financing a vehicle. This is because, according to its site, CarHop reports payments to the three major credit bureaus, proving that the customer is worthy of good credit. "While we can't guarantee that anyone's score will improve, we provide our customers with a chance to improve their credit through reporting their payment history, both good and bad," Bruce Hutchinson, vice president of marketing, told the news source.