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How Do I Build My Credit?


A recent applicant asked the question, "How do I build my credit so I can get a car loan?"

This customer further described that he was 18, employed and wanted to build his credit fast so he could obtain a vehicle loan. He wanted to know if there was a way he could do it without the backbone of a co-signer.

Well most of the lenders that finance first time buyers and report to the credit bureaus require a year on the job and a 15% - 20% down payment. If you meet these requirements you should qualify for a loan at a dealership that has a subprime department.

If you do not meet these requirements your other alternative is to visit a buy here pay here or rent to own independent dealer. As long as you have a steady income you can prove, most of these dealers will lend you the money to buy one of their cars. The down side to this is that the payments most likely will not show up on your credit report so it won't help your credit rating.