Little Credit History, High Interest Rate

Q: I am an 18-year-old high school grad with little credit history. I recently applied for an auto loan and the dealer offered me a 17% interest rate. I do not have bad credit, I just have not had the ability to establish credit. What can I do to get a lower rate on a car?

Geraldine S. – Dothan, Alabama

A: Dealerships have many sources to finance cars for individuals from manufacturer financing to local and national banks offering car loans for all different credit levels. In your particular situation, you might want to try to get approved for a credit card and pay your bills on time for about six months to help establish credit. Check your credit score (FICO score) online to see where you’re at and go from there.