How Does One Establish Credit for the First Time?

Hey Tony,

I've recently been turned down for a couple of auto loans in my quest for a newer car than what I have. I'm being told that I don't have any solid payment history on my credit. Basically, I'm a young man fresh out of college so I don't really have much credit history. One of the main reasons I want to purchase a car is to build my credit; so I'll have a chance at buying a house or do whatever else I need to. The car I have now is reliable and I don't have a problem keeping it. My question to you is this...for the purpose of building credit, is buying a car and financing a loan the best and fastest way to build one's credit? Please tell me what you think. I don't mind keeping my old car, but I need to get credit. What do I do?

Thanks in advance,

Frank

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Hi Frank,

There are many ways to build credit. Start out by getting a credit card for example. It takes time to build a credit history, so you must be patient. Some new car manufacturers have special financing plans for recent college grads on new cars. You can look into these with Ford, GM or Chrysler.

Another way to get started with a car loan is to have someone with established credit co-sign on a loan for you. As long as you make all your payments on time the co-signer should be just a one time thing.

Good luck...

Tony Iorio
http://www.InsiderCarSecrets.com
http://www.Car-Loan-Quotes.com
http://www.Used-Car-Warranty.com
http://www.GreatCreditCardDeals.com