Have you had serious credit issues but managed to get through them with credit repair? Then you need to start building positive credit. There are a couple ways to do this. If your credit repair efforts were successful, then you should be much happier with the looks of your three credit reports now. There shouldn't be as much 'derogatory' credit on your reports. Accounts will have been updated or wiped away if you repaired your credit properly.
Now your goal needs to be building new credit. This will become very important if you ever want to purchase something 'on credit' again. This situation will not resolve itself. If you don't build credit, you will not have a credit profile that an underwriter will consider. If you don't do anything for many years, then down the road there will be nothing on your credit report and you will still be considered "high risk" because the underwriters will have no way to evaluate you. Sometimes underwriters will look at your bank records and utility bills and your vehicle insurance bills to see if you pay them on time. They can use that information to consider extending credit to you, but you will still be considered high risk and therefore will not qualify for the better loans. High risk loans have high interest rates and high fees attached to them most of the time. You want to stay away from those kinds of loans because you will never pay down the debt in a timely manner. You could easily end up 'up side down' on your car loan if your interest rate is 25% for 6 years. Do yourself a favor and never put yourself in this situation. You are better off buying an old clunker and paying cash for it than you are getting into a high risk car loan.
There are two standard ways to build credit: 1) credit cards, and 2) small secured bank loans that report to the credit bureaus.
Whatever you do, make sure the loan you get will report to the credit bureaus. You'll be wasting your time if your loan doesn't report to them. There are a lot of 'second chance' credit cards available. Yes, you are going to have to pay for them in some manner. The key is to keep the balance paid off and use them sparingly. Never think of a credit card as free money. They certainly are not free money.
You might be able to get a small loan from your bank if you can offer them a car title or something of value. Make sure they report to the credit bureaus. This is very key. This is a good way to approach your bank: Tell them you plan to keep the money that they loan you in an account at their bank and you will use that money to make the payments. Get a 12 month loan. If it is $500, they could even charge you 25% interest and it would not cost you that much per month, and you are buying back your credit! You will just have to 'suck it up' a bit. In the end though, when you have rebuilt your credit, you will be glad you did!
Matthew Wierzbinski is one of the owners of www.creditblossom.com. He was a mortgage broker for over 7 years and during that time he was able to help people repair their own credit successfully. All the knowledge he built up during those years has been poured into the CreditBlossom web site. Matt wrote a credit repair guide and built credit repair software. These are available to the public for free at the CreditBlossom.com web site. Self credit repair is something anyone considering repairing their own credit should look into before they approach a company. The process is simple enough that anyone with a little time can figure it out. Using the CreditBlossom.com system makes it even easier. The site walks you through the details and the software makes writing dispute letters extremely easy. Much of the instruction also comes in video format to make it even easier.
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