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Posted in Auto Loans
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casper2590

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Best way to pay off my bad debt?
I will soon (within the next 6 months) need to get a car loan but would like to try to improve my credit so as to be able to get a better interest rate. My credit score 605 but when I use the simulator on this site-it makes it seem as if my score would go down if I were to pay off my debt (but this site doesn't actually have a pay off collection part in the simulator-I used the pay down credit card part) I have $1816 in collections and no credit cards. Would paying down my debt actually help? I would like to try to get my credit score to 700 before getting a car loan. Thanks in advance!

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If any account is in collection...

you are not liklely to get approved for a loan.  Get those paid off ASAP. 

Yes, paying down your debt will help.  You may not be able to get your score up to 700 in six months, but paying off and paying down as much as possible will certainly help.

Good luck

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