Yes and no. On its own, getting a BHPH loan almost never has any effect whatsoever on your credit. However, it could have a positive effect if the BHPH dealer reports all loan activity to the credit bureau and you make your payments on time. Most BHPH dealers don’t make regular reports to the credit bureau. A BHPH loan can have a negative effect on your credit report if you fail to make the scheduled payments and the dealer repossesses the vehicle. Even dealers who don’t regularly report to the credit bureau will often make an exception and report a repossession.