What do you do if you have no credit history at all? How do you establish credit?

What if you have no credit at all? How can you win the chicken and the egg game if lenders only lend money to people with established credit? This is the other big hurtle faced by most first time buyers. You must establish credit. Once you do, you must be responsible and pay on time, and don't overspend. This might require you to wait another 6 months to a year on the car loan while you go and get your credit established, and build somewhat of a history showing that you pay your monthly revolving credit card bills on time. A good time to do this then would be 6 months before you think you might buy a new car. It's fairly easy to get a gas card from your favorite gas station, or a credit card from Target stores. As you do your normal shopping at Target, use your credit card, but pay it off in full each month. Don't overspend, and never let any balance on any of your credit cards reach the level of 50% of your credit limit. That has a bad effect on your credit score. Then while you are in your 6 month building credit period, you are saving even more money to put down on the car, making your payments less. Patience pays off in the long run.

Until you get your first credit card, you probably have no credit score, or it's below 550, where no lender will touch you. This is why people get rejected. It is so unbelievably amazing how stupid many "adults" are, who think they can breeze their way through life and not pay their bills, thinking no one is watching. Big brother is indeed watching. Every bill you refuse to pay, doctors bills, credit card payments, loan installments, traffic tickets, bankruptcies, foreclosures, late apartment rent, arrest records, ALL gets reported on your credit report, and it definitely 100% keeps you from getting financing later in life, for 7 years. I hope you heed our warnings and that you'll learn from other people's mistakes, not your own, be much smarter from than these people. Lastly, lenders will not approve loans on any used car over 5 years old. So if you are buying an older used car, the only way to finance it is with cash. Don't fall for any crazy off the wall financing schemes here, just pay cash on older used cars.

If your Credit Score is <>Capital One Auto Finance can provide financing for people with scores of 600 or even lower if other qualifications are met. You can also apply to AutoCreditFinders, who finds "bad credit car loans" for you. They get you new car financing from their network of high risk lenders and car dealers with decent online auto loan rates, even with a bankruptcy. If your score is > 550, and you have no bad credit for 6 months, AutoCreditFinders Bad Credit Auto Loans can help you establish credit with lower online auto loan rates than dealers. If you had bad credit in the past, then a bad credit auto loan might be your only hope.