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Bad credit loans are popular these days and have a vast market. What's the difference between a BHPH dealership and a traditional dealership? Depending on the dealerships you visit, very little. But with secured auto loans you are supposed to pledge collateral against the loan and in most of the cases the car you are buying is the best option. You purchase the car through what's referred to as in-house financing versus through a third party, such as a bank. A poor credit car loan usually has a higher than normal interest rate, and the payment periods usually range from two to five years in length. 2. In case of unsecured ones no security will be asked from you as collateral against the loan. The cars are generally used, and the dealership usually charges more than the blue book value for the cars. 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. What are the benefits of BHPH financing? 1. In fact, many traditional new and used car dealerships have started to offer BHPH financing as an option. High Pre-Payment Penalties

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