If you’ve never had credit, you are what’s known as a “ghost” and you have a zero credit score. You may wonder, what if I’ve never had credit? This is not the worst thing in the world. First of all, yes it is very difficult for a lender to determine how you will repay them if you don’t have any credit history, but if you don’t have any credit, that means you don’t have any “bad credit” either. With no credit you have your whole life ahead of you as far as credit goes so this may be an exciting time. This is a good time for you to think about your future. How do you plan on using credit responsibly? What will you do when you have established credit? How will you make sure you keep your good credit once you have it? Maybe even more important how do you get an auto loan with no credit? There are literally thousands and thousands of lenders out there. Do they all have a first time buyer program? I’m afraid not. There are however, some that do and they each have different things that must happen to allow your auto loan. The most common way to get an auto loan with no credit is to get someone with good, established credit to sign on the auto loan with you, these people are known as co applicants or co signers. They may also want to see a good equity position in the vehicle. To get a good equity position in a vehicle you will most likely need to put some money down. Don’t plan on trying to buy an expensive car the first time out either. Most lenders are only going to want to lend on an inexpensive car to see how it goes with payments. Relax it’s not forever. One you have proven yourself, say after a year or two, you will have a lot more options.
