I just bought a car from a local car lot and was wondering if that would help build my credit??

Question

even if they financed the car??, they say after the cars paid off they would give me a letter that I would have to send to the credit bereau, why dosent it automatically report itself??

Answer 1

Auto finance is what I do for a living and there is no law that requires them to report at all.

The letter that you will get is just about worthless because all the credit bureaus will report is the opening date of the loan, the closing date of the loan and that it's paid with a $0 balance they will not report your payment history and that's what builds credit.

Buy here pay here places do this for one simple reason, if they actually reported then their customers could go buy from a real dealer and get a better deal so they don't report holding their customers hostage so they will have to come back to them when they want to buy another car.