Lenders are looking for a positive payment history. So you must have some credit accounts that meet the criteria described in “Your Credit Report” section of this site. Once you have cleared your past issues, it is time to start a new relationship with a lender. Before you take this journey please understand the following.

Generally speaking, there are two types of lenders. Prime lenders are your banks and credit unions. A Secondary lender will more than likely is a finance company. Some banks offer special programs that accept credit scores that are normally in the secondary range. 

It is not best to re-establish yourself with an auto loan. You will receive a higher interest rate based on your credit score. A higher interest rate translates to higher payments. To drive home the point, we will give the example of an automobile that a consumer pays $15,000 to purchase. Having bad credit with a 15 percent interest rate, your total payments for five years to include interest would be $30,170.36. So you’ve paid twice the amount for the car. On the other hand, having good but not excellent credit with an 8 percent interest rate, you will pay $22,039.92. You have saved over $8,000.00. Depending on your situation, you may be able to lower your interest rate in 30 days.

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