It's frustrating enough when your credit score is suffering and it's difficult to get a car loan. But what if you don't even have enough credit for it to be bad? If you're having trouble getting the auto financing you need because of a thin credit profile, we have some tips on how you can beef up your credit reports.

Designed With You in Mind

No Credit to Get a Car Loan With? Try a Credit Builder Loan FirstHaving a thin credit file, or "being a "credit ghost," simply means there isn't a lot of history for lenders to look at in your credit reports. This is common with younger buyers – people who are just starting out in the credit world, fresh out of high school or college. But they're not the only ones that encounter this problem.

You can also become a credit ghost if you don't regularly use credit. By paying for everything in cash and not taking out any loans, you're not adding to your credit reports in the ways that you could. This isn't typically a problem for people who choose to live this way – until something changes and they find themselves needing to finance a big ticket item like a vehicle.

Financial institutions are well aware of the possibility of these situations, so credit builder loans were designed to help these people. Credit builder loans are offered through financial institutions, such as smaller community banks or local credit unions, and you don't have to be a credit ghost or have good credit to get one.

What is a Credit Builder Loan?

A credit builder loan is designed to help people with poor credit, or little to no credit, add to their credit profile. If you're approved for a credit builder loan, the end goal isn't the money – it's an improved credit score and a history of on-time loan payments that help lenders see you can be responsible and handle financing.

The money you pay into this type of loan gets deposited into a savings account, and you get the funds, plus interest, once the loan is completed.

How to Get a Credit Builder Loan

The first step to getting a credit builder loan is to find one that meets your needs. If you're a member in good standing at a credit union, your best bet is to check there first.

Otherwise, you want to research credit builder loans available to you either through a local financial institution or an online lending company. Keep in mind that different lenders have different interest rates, so look for the best one you can find, and make sure you can comfortably make the loan payments on time.

For this type of loan it's okay to start small. Even getting a loan between $500 and $1,500, and paying it off over a short amount of time (six to 24 months, depending on the loan amount) can help improve your credit.

The real key to success here is to make every payment on time. If you do, you're rewarded with the loan balance that includes interest, and better credit to help you take on the car loan you need with confidence.

Build Your Credit With a Car Loan

Did you know that an auto loan is also a great tool for helping you build credit? It is – as long as you have the right lender and make each monthly payment on time. Not all lenders can work with people that have little or bad credit, so to ensure you're working with the right lender, let us help.

Rather than driving all around town trying to find a dealership that works with lenders for bad credit car loans, let us doing the searching for you. Auto Credit Express works with a nationwide network of special finance dealers. Simply fill out our easy, no-obligation auto loan request form today, and skip the headache of hopping from dealership to dealership hoping they can help.