You know that you don't have bad credit, so why weren't you approved for that auto loan? If you have no credit or a very thin credit file, this may be the culprit.

Lenders Can't Base a Decision on Nothing

A potential lender will look at your credit history in order to make an approval decision because they need proof that you are a responsible borrower. If they aren't able to obtain this proof, you are considered to be a "loan risk," and you may be turned down for credit.

So, here's the conundrum: How can you build a credit history when no one is willing to give you credit because you have no credit history? Believe it or not, there are ways to start building a borrowing profile from a starting point of little to no credit.

A Plan for Credit Building

Opportunities to build credit may not come easily at first, but the process will start to go more smoothly as soon as you have established records of positive payment activity.

no credit, credit building, finance

  • Apply for a secured credit card. Almost anyone can be "approved" for these lines of credit because they involve virtually no risk for the creditor. When you request a secured credit card, you put up a certain amount of your own money as a deposit, and the amount of this deposit becomes your spending limit.

    These cards function just like "regular," unsecured credit cards. For best results, you should use yours regularly and make your payments on time, every time. These positive payments will be reported to the credit bureaus, and your activity will be documented on your credit reports.

    After you have successfully used your secured credit card for six months to a year, most companies will offer to transition you over to an unsecured account with a higher spending limit. This will give you an even better opportunity to build credit, as long as you continue to be responsible with your payments.

  • Arrange to have your rent reported. Historically, renting an apartment or home would do nothing for your credit rating. However, this no longer has to be the case. Several companies are now working with Experian's RentBureau to make it possible for your rent payments to show up on your credit report.

    Some property managers/landlords already report through RentBureau, but if yours does not, you can (for a small fee) utilize the services of one of the participating companies. Just go to the RentBureau section of for all of the details.

  • Take out a bad credit/no credit car loan. If you need to purchase a vehicle, taking out a loan to finance your car purchase will give you an excellent opportunity to make monthly payments and build credit. Luckily, there are many lenders out there that are willing to look past your lack of credit in order to approve you for an affordable auto loan.

The Car You Need, the Credit You Want

If you need access to reliable transportation, and your credit is either damaged or virtually nonexistent, Drivers Lane can connect you to a dealer that can get you approved for financing through a qualified lender. Our process is quick and easy, and you may even get approved with little or no money down.

All you have to do to get started is fill out our fast and secure online application.