Finally, another way to re-establish your credit is to use the reputation
you have with your bank or credit union. If you have a history of not bouncing
checks or having a lot of charges for insufficient funds, then your bank may
extend you a small loan to assist with re-establishing your credit.
Often, the way to get a loan through this method is to have a personal
relationship with your institution. If you have a loan officer or bank
associate that knows you and your history, talk to that person and explain that
you want a small loan that you can pay back in a few months as a way to rebuild
your credit.
While it may be a blow to the ego, being honest about your credit problems,
regardless of the person or agency that you are dealing with, is important in
re-establishing your credit—and dealing with your past credit issues.
The bottom line to re-establishing your credit is to look for avenues that
will give you a loan that will be reported to the credit bureaus. A loan for
the sake of a loan is not going to do anything. It must be documented that you
are working to show the world that you have learned from past mistakes. And
remember, a credit mistake is something that can be corrected; it just takes a
little time.