If you have had serious credit issues but have managed to get through them by doing credit repair, then you need to start building positive credit. You can do this in a couple of ways. 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 should have been updated or wiped away if you repaired your credit correctly.
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. You must build credit so that you will 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 judge 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. That info can help them decide whether or not to extend credit to you, but you will still be considered high risk and thus you won't be getting the better loans.
High risk loans have high interest rates and high fees attached to them most of the time. You would do well to avoid those kinds of loans because you won't be able to pay them down very quickly. You could easily end up ‘up side down’ on your car loan if your interest rate is 25% for 6 years. Don't ever 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.
Building credit is usually done in two ways: 1) credit cards, and 2) small secured bank loans that report to the credit bureaus. Just be certain you get a loan that 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. Of course, you will have to pay for them in some manner. Just be sure you keep the balance paid off and use them infrequently. Never think of a credit card as free money. They certainly are not free money.
You could be able to get a small loan from your bank if you have a car title or something else of value to offer them. Be certain they report to the credit bureaus. This is really important. You can approach your bank with an offer like this: Tell them you plan to keep the money that they loan you in an account with their bank and you will make the payments on the loan using that money. 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 are going to have to ‘suck it up’ a bit. In the end though, when you have rebuilt your credit, you will be glad you did!
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