Glossary
In-House Financing
In-house financing is a type of loan or credit offered directly by a seller or service provider—such as a car dealership or retailer—instead of through a third-party lender like a bank. It allows buyers to finance their purchases directly from the business they’re buying from.
Who offers in-house financing?
It’s commonly offered by auto dealerships, furniture stores, dental clinics, and other service providers who want to help customers make large purchases.
Is in-house financing good for bad credit?
Yes, it's often used by buyers with low or no credit scores who may not qualify for traditional bank loans. However, interest rates are typically higher.
What’s the difference between in-house financing and dealer-arranged financing?
In in-house financing, the seller is also the lender. In dealer-arranged financing, the dealership connects you with a third-party lender like a bank or credit union.
Are in-house financing terms negotiable?
Sometimes. Terms may vary widely, so it’s important to compare interest rates, repayment schedules, and penalties before signing.
Does in-house financing affect my credit?
It can. If the business reports to credit bureaus, timely payments can build your credit. If they don’t, it won’t improve your credit history—even if you pay on time.
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