As you are trying to re-establish your credit or get a loan after you have had bad credit you may want to try and find a co-signer who can help you get a loan. If this just happens to be one of the first loans you have applied for in a while then try to make it a smaller one that you can easily pay off without any major problems and you can establish good credit.
If you are looking for a co-signer, find someone that really knows you well and knows that they can trust you to make payments. Try to not betray the trust and keep in mind what we already discussed about making all of your payments on time. If you do get a loan then the only way to establish better credit is by making your payments on time.
Think about who would cosign on a loan with you. It's likely to be either a friend or family member, and those aren't people you want to disappoint. Above all else you're looking to preserve the relationship and trust that you have with them.
It would be best if when you approach a friend or loved one to cosign on a personal or signature loan with you you already have a plan in place for how you're going to repay the loan. It will increase their comfort level by leaps and bounds knowing that you have a specific, written plan for how you're going to keep the loan 100% current and protect their credit.
Just imagine what a disaster it would be in your personal life if you were to get a close friend or relative to co-sign on your loan, and then not follow through on your plan for repayment. At that point your co-signer has two options.
Either they're going to let they're credit be ruined by your inability to make your payments, or you they'll have to make the payments for you. If you took out the loan to go on vacation or buy a TV, or whatever it might be, imagine how embarrassed you'd be.
Before you take on a co-signer, think long and hard about what you're borrowing the money for. If whatever you're about to purchase (a vacation, a big screen tv, a new set of golf clubs, etc) isn't completely essential, you should really consider whether risking the credit of someone close to you is worth it.
Wouldn't it make more sense to just save up the money? If you have the money for the loan payments, don't you have the money to save up and buy whatever it is you want?
If the purchase you're making is completely essential, then it's probably worth it to have someone co-sign on the loan you're taking out. Just make sure you create a plan for paying the loan, and follow through on every payment until the loan is gone.
At the end of the loan period you'll have both the satisfaction of protecting a friend's credit, and improving your own. The wise use of credit is definitely a big part of any solid financial plan.