Your best options
- Credit unions — often more flexible with first-time borrowers
- A co-signer with good credit can get you a much lower rate
- A larger down payment lowers the loan and the risk to the lender
- First-time buyer programs — some lenders and manufacturers offer them
- Nonprofit car loans such as Ways to Work
- Pay cash for an inexpensive car (buying guide)
Build credit first if you can
- A secured credit card used lightly and paid in full
- A credit-builder loan from a credit union
- Being added as an authorized user on a trusted family member's card
Avoid
Dealers advertising "no credit check, guaranteed approval" may charge very high interest. Read red flags of predatory auto loans.