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Posted in Auto Loans
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wagtasticpetcare

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a credit score of 550 with so many medical bills
I want to get a new car or lease a car and eventually buy a house in the next couple years. My credit score is a 550- i believe they are all from medical bills. I do have a good payment history but I dont even know where to start with repairing my credit... I did get a secured card from my bank that hasnt been delivered yet... but i want to get a new car soon and I just want to know what to do to improve my credit quickly. I'm so confused on what to do.Thanks

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I am glad that you got a Secured card, just make sure that it will be reported to all three credit bureaus, if not, get another one in addition to this one from a lender like Capital One. You should watch your FICO scores too as most lenders use a version of FICO scores (they do cost money, but during a credit build it is important to watch them).

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The basic credit building tools are three credit cards and one installment loan that are reported to all three credit bureaus. You do not want to open a bunch of new accounts though if you are going to go for an important loan such as an auto loan in the near future.

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You need to try to get as many of the negative accounts removed from your reports as possible. This will most likely need to be done with "pay for delete agreements" so do some reading on them.

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As much as you don't want to hear it, you should work on cleaning up and rebuilding your credit first and put the new car off for a year. None of us like to wait, but sometimes it is necessary. Do as much reading as you can about credit, there is a ton of info all over the internet. Getting educated about credit is the first step to building and maintaining good credit, so the time spent reading is a very good investment. Any more questions please feel free to ask.

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