Category Archives: Opinion

How To Get Bad Credit

How to Get Bad Credit

If you are in the market for a BHPH car loan, then you probably have bad credit. So, you’re wondering how to get bad credit? Below are great ways to further impair your credit score. (Word to the wise, do the opposite of the following.)

1. Don’t Pay
If you don’t pay your bills, then your account could be charged off and creditors will pursue you diligently. Even if your account is closed, you can still damage your credit by not paying your bills. To get courts involved, don’t pay spousal support and/or child support, which could get you arrested and sued for the payments you missed.

2. Late Payments
This is a great avenue to destroy credit. By paying bills late, your score will drop dramatically. Over a third of your credit score is payment history. To increase late charges and negative credit reports, do not set credit reminders and overcharge beyond your means on all your credit cards.

3. Credit Applications
Apply for all types of credit cards that you’ll never use for promotions and discounts. You’ll have numerous credit inquiries which will show creditors that you’re a risky client.

3. Loan Default
Don’t pay loans that are due. For example, don’t pay your auto loan and get your car repossessed. This is an excellent action to plummet your credit score, and it could put you close to bankruptcy, especially if you default on your home loan!

4. Maximize your Credit Cards
Charge the maximum amount on all of your credit cards. By charging the maximum, your debt-to-credit ratio will skyrocket. Creditors do not fancy high debt-to-credit ratios, and your credit score will reflect their lack of admiration.

5. Don’t Pay Parking Tickets
Parking ticket, forget about it! This is a bill like any other. Avoid paying parking tickets and fines will stack up. These fines could be sent to a debt collector, and this means your credit score drops.

6. Closed Credit Cards
If you think you closed your credit card, which has yearly fees or a pending balance, but it’s still active, it’s still your neglect. Active “closed” credit cards will lead to fees, charges and another drop in your credit score.

7. Get Evicted
Timely rent payments do not help your credit score. However, missing rent payments until you get evicted will hurt your credit. As a bonus, an eviction could hurt your ability to rent another apartment or house.

If you follow all of the above advice, you should be able to drop your credit score significantly. Let us know if you have any other brilliant means to destroying your FICO score.

Disclaimer: Destroying your credit score is not recommended as it will lead to serious financial stress. Depending upon your chosen path to credit collapse, you could end up with criminal charges.

Guest post by Rian Taylor, BHPH marketing expert at DRIVE 1 AGAIN Used Cars in the Denver, Colorado metro area. Follow her on Google+

Is Carfax Really Worth It?

Is Carfax Really Worth It?

Many times when we at are called and asked about a carfax report for a particular car. This request is just a reaction to clever marketing by Carfax. Consumers have been bombarded with ads extolling the virtues of a Carfax report. So much so, in fact, that consumers assign a reliance on that method of vehicle examination as inviolate. When told that the vehicle does not have a carfax report, the caller, oftentimes, dismisses the vehicle for consideration. Is that fair to the car buyer and the car seller? We say that it isn’t. A carfax report is not gospel. A Carfax report is limited to accidents and repairs that are REPORTED. If a vehicle has been repaired without a centralized dealer based report, then the consumer will not know about it. Therefore, the price that you pay for the Carfax report is wasted. You see, most vehicles, especially the older ones, have local repairs done to the motors and body without any reporting. Does that mean that they did not take place, and that they do not impact the quality and the value of the vehicle in question? Of course not!

We at adhere to the old tried and true method of car choice. You know, the old fashioned way, i.e. asking questions,test drive, physical examination, belief in the dealer, warranty offered, price consideration, safety inspection, just to name the obvious.

The point here is, that relying on a computer generated print out about the vehicle is not the be all and end all of vehicle examination. Carfax is a for-profit company that solicits dealers to subscribe to thier service. They have successfully marketed themselves into making consumers believe that without using their service, then they are at a considerable risk in their vehicle choice. Use your own mind here folks. While we will admit that a Carfax report can be useful, it is not the Bible. Please do not dismiss what can be a great vehicle choice because it lacks a Carfax. Most dealers, when they purchase vehicles from auctions, have an Autocheck included in the purchase price of that vehilce. This renders a Carfax superfluous. Ask the dealer where the vehicle was purchased. If it is from an auction, then you can be confident that the vehicle is not salvage, and that the mileage is accurate and that it is not a lemon law recall

Common Misconceptions About The BHPH Industry

There are some misunderstandings when it comes to the BHPH industry. Many BHPH dealers have been accused of charging punishingly high prices for their automobiles. So much so, that various lawmakers throughout the country have taken it upon themselves to protect us from ourselves again by regulating pricing and repayment. Another common misconception is that they employ heavy handed tactics when collecting payment. Another is the lack of tolerance for any payment delinquency.

Firstly, it has to be understood that BHPH dealers are “fronting” many more dollars to the customer when they consent to put a vehicle on the road. Oftentimes, the dealer won’t reach a break even point until well into the sales agreement. It is not unusual for a BHPH dealer to wait 2 years before realizing a profit on what he sells. Also, the national average for repayment to the BHPH dealer is only 60-65%. That is not a very good percentage rate. He looses on many of his sales. That is just a plain fact. The only way he can maintain profitability is to charge more for what he sells. Non payment is the risk he takes, and paying more is the consequence of a personal financial meltdown. There are risks on both sides here, and, so far anyway, there is the freedom of choice to not enter into a deal that you believe is not healthy for you. The disturbing trend here is that the government in all their infinite wisdom is continuing down the path of regulations that will only burden both the consumer and the dealer resulting in higher prices.

Is is a common belief in the BHPH industry that, if payments are not received when the first few dates they are due, then the risk that the BHPH dealer has taken is not a positive one. He has to get the vehicle back, and move on. Let’s face it, if the consumer is lax about the first few payments, what is going to happen down the line. History suggests that this buyer will be a chronic non-payer. That individual’s behavior brings prices up and taints the selection process for others. However, past experience does suggest that, if a customer has been a making prompt payments for many pay periods and has a rough patch, the dealer is more inclined to be tolerant. Prompt payment allows for the dealer to stay in business and provide reliable transportation for the credit challenged. He is not a monster. He operates his business to make a fair profit like every other business. He is not different than the grocery store owner, the gas station owner, or the local landscaper. These people aren’t reviled and disparaged. BHPH dealers are normal businessmen who engage in a risky enterprise. They are the last chance for many credit challenged. They provide a service and expect a profit. The last time I checked, that was what our economic model was all about.

Please friend us on FB, Google+, Pinterest and follow us on Twitter.

This article was written by Brian McCormick of Providence, Rhode Island. Brian is a BHPH expert and has been involved in the used car and BHPH industry for over 40 years. He enjoys his family and his favorite sports team, The Boston Red Sox. He Graduated from the University of Rhode Island in 1970. Follow him on Google+