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Can I get a decent loan with my credit? 630
Credit score around 630. Age 24. I dont have any cc debt and no other loans. I do however have a few accounts in collections in the area of 7k from a medical bill I got the month after HS graduation. I net around 2300-2500 a month. If I could qualify for anything where should i go and what could i qualify up to? What bank lender etc... I think i could do a down payment of 3 to 4 thousand. Thanks to anyone willing to share their insight.

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Credit Score Hacks

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Forget what the above poster said in moving out of your parent's place. 

You are in the perfect place to be in building your credit as we are the boomerang generation. Any little debt including student loan debt holds us back from renting anywhere on our own as renting rates soar astronomically, and the availability in jobs that pay well for our age is rare to cutthroat. 

You are making a decent amount of income for someone of your age without a college degree or a lack of job availability in their own degree field. 

The area that you live is a big factor in all of this due to cost of living; whereas one individual here may be thinking you are of low income, you may be at the opposite end of that if you live in San Antonio, TX (for example).

With that being said, I am around the same age (25) with almost the same stats (same income from part-time jobs, living with parents) except I have a 4 year old child. I only have about 2k in past credit card debt because my husband passed away.; I originally had $3k, but I paid and closed $1k in credit card debt before accounts went to collections/charged off. I am paying off an auto loan that I received two years ago for a pre-certified used vehicle at an insane interest rate due to new credit age (1 year left, $4k). I have $1.5k in student loan debt.

My score is 640 at the moment (though it has been jumping up some points every other month as I make $200+ payments to my active credit cards 2-3 weeks out of the month). It was around the same when I first started financing my car, dropped to 620 after approval for car financing. 

Then, my husband passed away a few months later; my credit score dipped to 520  due to some credit card debt in collections, some credit card accounts closed after being paid off.

I have since moved it about 120 points within 6 months or so.

Now, I'm going to tell you that the $7k in medical bills is going to hold you back in receiving decent loans or credit as the variety of my debt totaling roughly $7.5k does. So, the name of the game is to hold off on receiving more debt with asinine inerest rates in order to get reasonable rates a little later into the future. I

t's harder to crawl out of debt that has ridiculous interest rates than the latter.

My advice?

1. That medical bill is going to completely fall off of your credit report in a year or two. There's no point in re-paying it back as that will probably re-open up the statute of limitations to get sued (depends on state) as well as verifying the debt as yours. Leave it be. It matters less to your credit score as the years pass, anyway.

2. As others have stated, focus on making payments on-time. After making 5 to 6 on-time payments, I recommend requesting credit limit increases of $200-300. Your chances of being approved for this increase if your accounts are paid off in full every month.

3. Use these credit cards as little as possible: 30% or less. That means if your credit limit is $500, only use up to $150. Doing this in combination with paying off the account in full every month makes your credit score jump the most points. My husband would advise me to only use the credit cards for gas, put aside the cash I was going to use for that, and then use that cash when the payment due date comes near to pay off the balance on the credit card. 

4. Opening a new line of credit will only cause your credit score to immediately jump about 10 points as compared to 12+ points in 30% or less utilization and paying balance in full every month. Your credit usually will take a hard hit (dropping points) everytime someone checks it to approve you for a credit line/loan or not. If you do not get approved, it dropped for nothing. 

This is also why I recommend holding off on this.

Of course, the loan may help your credit score in the long-term (6 months+).

Every time a company looks at your credit for whatever reason (i.e. apartment rental process), your credit score can drop points/hard hit inquiry.

5. Keep using your credit card(s) every month or else the credit grantor may close the account. Closing the hurts your credit score; it is removed from it as if it never existed causing a drop in points and/or age of credit account. If there is a charge off/collection amount left over after account is closed, it's like a double negative hit to your credit score. I learned this the hard way.

6. Bonus tip: 

-This credit game can be tedious as time is a big factor in your credit score. Do the 'set it and forget it' technique. Only use up 30% or less every month (an exact amount), leave it at home for the rest of the time to avoid temptation, and set up auto pay to take out that exact amount from your bank before your due date.

7. Bonus tip: 

-Making a payment twice in a month (every two weeks) can help your credit score a lot; this is especially true if you do not know exactly when your credit card company reports your balace to the credit reporting agencies every month.

-Paying off the balance up to a week before the due date (not touching it again until a day after the due date) can help your score even more.

8. There are some other tips and tricks I have up my sleeve for playing the credit game, but I'll leave the rest up to you. I gained a lot of this information through my husband (who helped me hit 600+ within a year or so at 23 years old) and internet research (the reason why it is 640 now and continues to go up).

It is my personal belief that most educational institutions (middle or high school) do not teach this to students in order to prevent young adults from having decent/good credit at such a young age. If we started developing our credit scores as soon as we graduated high school, our credit scores would naturally be better because of the age factor that negatively or postively affects it. The longer your accounts are open (seen as "credit experience"), the easier it will be to make credit scores better and vice versa.

Therefore, it is all up to you to put in the work to make it to the top. You do you, forget the naysayers, and hit the ground running with all of this information I just gave you! Hopefully, I've leveled the playing field enough by de-mystifying this credit score process.

Hope I helped :)


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New car!

Helpful to 4 out of 4 people

I'm 20 years old. My credit score is 586. I have one car loan and one cc that are both up to date and have been for about a year and a half and I missed a few payments back in 2014 for both my car and cc but haven't missed one since then. I'm going to pay off my cc that is $277 and I got an estimate credit score from credit karma after I pay that cc off and it said it will be about 646 (which again is only an estimate) my car loan is about 14,000 left but I'm going to get a new car either December 2016 or January 2017, after I pay off my credit card. I have 0 hard inquires, 0 collections, and 0 derogatory mark. I believe my credit score is high because my cc and loan have only been open for about 2 year, my credit limit is $300 and I used $277 (yes I know I shouldn't use all of it but I had a low paying job before this current job) and I only have two credit accounts open (I don't plan to get anymore besides my new car) and also because I was late on my payments back in 2014 my credit payment history is 83%. Those are the negative things I have on my credit based on my credit report from credit karma.  Basically I want to get a 2016 jeep renegade and those run between 17,000-30,000. I'm only looking into getting one that is about $17,000-$25,000 the max and I don't want to have a high interest rate or payment. My current car loan is $450 a month for a 09 Toyota. I have a very high interest on that loan which is about in the 20's I beileve. I was hoping to get any advice from anyone or what you would think I would get as an interest rate and payment for the jeep renegade would be. Any tips or advice helps!!! 

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It depends....

Helpful to 28 out of 45 people

 If you need a car (I am in that club too), cash is short (when you make more you spend more...) and it seems like your options are limited.

 They aren't. Min score for most sub-prime car loans is around 520. The better your score, the better your interest rate. Downpayment is not that much of a factor unless it's 15-25% of the purchase price, tax and other fees included. 

  If you have collections on your report, there isn't much you can do about the damage is done. You can try and GW them off your report. In some cases you can get these removed by constantly sending them letter. Oh before you type that GW letter out, be sure to watch Ty Crandell's video on YouTube about the automated systems all the credit reporting agencies use to even manage disputes.

 It's better to spend your time creating new positive trade lines. You can of course pay your collection accounts but it won't boost your score, only new positive trade lines will do that.

 So you still need a car right? I do too, so I look at my options. My TU score according to this site is my middle score out of the three. With this score, I can get a loan from any of the subprime lenders that are offered here as recomendations; these include Auto Credit Express, Capital One and Road Loans (Santander).

 Another option is CarMax. The reality is you will pay a little more for the cars, this is apart of th no haggle policy. It is not uncommon to spend 6-8 hours buying a car even when you know what you want. In most cases CarMax can get you financed. The lenders they work with include Wells Fargo and Capital One. The lenders of last resort are Road Loans, Exicter and Car Max's own internal lending.

 The only way you wouldn't be walking out with a car is if your income is so low (I mean litterly no income) that you couldn't even afford about $300 a month which is roughly the cost of the car + insurance. In reality it's about $400-$450 when you include fuel and maintance.


 You can get a new car, don't be bashful about it. In many cases subprime lenders would rather you buy a new car instead of a high mileage used car, depending on what your approved for.

 For example on another forum a person claims they were denied a car/loan from CarMax but submitted an app with Road Loans and got approved but the car had to be a 2014 and they would give them $14,000.

 There are new cars you can get for that, but know it will be a B segment car; like the Honda Fit, Nissan Versa Note, Hyundi Accent, Ford Fiesta, etc.

 CarMax will finance indivudals post BK as well. So as I said it's hard to not get approved though them, if your not dead set on new car, I would look there way.

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How long post-BK should I wait?

Helpful to 13 out of 20 people

Hi there,

I need to purchse a new vehicle.  I declared BK last FEB (2014) and it was dismissed in NOV 2014. My credit score is 663.  I have 12 derogatories, but, they all have zero balances because of the BK.  I also have five Hard Inquiries since the BK.  Oh, and I'm self-employed.

Any feedback would be GREAT, thanks!!

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13 People Helped


Helpful to 13 out of 22 people

We filed bankruptcy 1 year ago and now need to purchase a new car for work. We have a vehicle that we could trade it, but we are giving it to a family member for work.  My CreditKarma score is 585 and my husband's is 586. We both have a decent income now. He is retired after 41 years and I have been on my job almost 1 year.  Should we wait longer to try to purchase a new car? We are not trying to purchase a new car just to have a new car, we need one.


The Baldwins


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Helpful to 10 out of 19 people

If you need a car more than a higher score, I would get the car. As long as you don't get a car too old with too many miles on it, you can re-fi at a much lower rate in 6 months to a year. 

 At 580 both you qualify for the majority of subprime lenders including Capital One.

 Capital One Blank Check is easy and no ridicluous fees like Road Loans where you'll be searching for a dealer to work with. It's so bad Road Loans has put a dealer location search on it's own website! 

 Auto Credit Express is another option and get high marks from reviews and the BBB.

 The leader of last resort seem to be Road Loans/Santander, so a word of warning.

 If you are the type to not be on-top of your bills and pay them on-time, keep your insurance policy updated,etc. I would think twice about getting a loan from them.

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