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Instead of making monthly payments to a traditional lender, you make weekly or bi-weekly payments at the dealership. The longer it has been since bankruptcy, the more likely you are to have a better credit rating. In many cases, BHPH dealerships aren't just an option—they may be the only option when someone has been turned down by traditional loan institutions. The Internet doesn't provide much more clarity. You purchase the car through what's referred to as in-house financing versus through a third party, such as a bank. Because car loans are secured, the interest rates are better than those on unsecured loans. A savings account can even be used as collateral for the secured credit card. Trade-in flexibility BHPH dealerships tend to be more forgiving when it comes to accepting trade-ins on older model cars. First, you should recognize that fixing bad credit after bankruptcy can take a while. You therefore "buy" the car at the dealership and "pay" on the loan at the dealership. This could keep you from refinancing if you later discover that you’ve entered into a contract with unreasonable loan terms. If you consistently make payments on a BHPH car loan, many dealers will report that positive

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