Bad credit history
requesting a loan is your actual nightmare the following will give some hints on how to have a regular loans and bad credit loans for poeple with bad credit history
Many people has a bad credit history, some don't even know it before they get refused for some credit or loans. In fact this refusal will make it worst.
where my credit history comes from?
Credit history is all your previous credit and loan. How you pay them in time or not and if you fulfill al required action are noted. Paying in time credit and loan higher your score. For most paying other bills(electricity, phone, etc.) in time don't change you history most of them don't appear there. But some will summit delayed payment. And this hurt your history.
How credit score and credit history related ?
The credit score is the evaluation in a single number of your credit history. That shows how you score. Then making good for some times will make you history better and then your score also.
How to repair my bad credit
The answer is uses credit reasonably and make no delayed payment and fulfill your entire obligation. This is the simple theory. The practice is you need to get some credit or loans first to be able to use it. The first and master of all Rule Don't over use credit what this means: only use credit that you can pay and don't use it if your not sure you can make the payment even in adverse condition. Your already in trouble don't make it worst. But the way out is to still use credit but in a control way.
One thing credit history is made by legally registered lenders. User private lender like pawnshop and personal loan to family or worst shylock don't help.
I will make some category and how you can find how you can handle it:
you already have credit:
If you already have credit pay it on time or even consult on how to reconsolidate to help you to be able to pay in time. You can follow the tips of the next section for so so credit.
Just so so credit:
This is usually the type that will have access to small amount credit card. Regular car loan with a premium(usually higher by 1-2% not the 5-10 %of the second chance). Credit card is just the perfect way to make your credit history better when used efficiently: each month makes the payment in full of the balance and always in time. Then next month put something else small on it then pay it again in full. Some say that not paying in full but making the minimal payment is faster. This is argue all the time and I think not worth the price since you will always pay interest and will be more likely to get a bigger balance month over month that can becomes out of control. Exactly what you should not do!.
Using auto loan work also, make the payment in time, since paying in full is not an option.
Real bad credit
In this case credit card are refused. Second and third chance car loans are sometimes possible, but they cost a lot. But if that is what you have and what you need is a car use it. "Please take a not very expensive car and then you can pay the loan". Then you can follow the tips of the previous section: pay always on time.
Since mostly all unsecured loans is no longer an option. I suggest that you get a secured credit card. Not a prepaid credit card sees definition bellow then used it as previously said for so so credit.
Other type is bad credit loan but those comes with a high premium in interest. This can be used but with a lot of care and knowledge of what you are doing. using them and making all payment on time will help you but those loans with high interest are also known to worsen financial situation and make you default that is xactly the reverse of what you should do to get a better credit history
prepaid credit card
Prepaid credit card are similar to store gift card (or prepaid card of some company) you have x money and the balance go down as you use it at zero you need to recharge to continue to buy. Since it's a prepaid there is no lending of money and this don't change the credit history. And they have usually very very big fee for everything. if it was not Matercard or Visa behind it everyone would say: That's a scam
secured credit card
A secured credit card requires you to make a deposit against the card's credit limit. You then use it and pay as a regular credit card. The deposit is use only if you fail to make the payments. Since normal payment and borrowing is made all transaction affect your credit history
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