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Question By
tickleme35

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Credit Decisions??
im wanting to purchase a used car(2007-2009 chevy tahoe ltz) towards the end of the year.Right now my TU 664(4 collections and 2 hard inquires) and Equifax 541(4 collections 11 hard inquires..7 of the 11 will fall off 07/2016). I was rejected for the recommended cards by credit karma(capital one and barclay).Currently Lexington Law is assisting me with the collection disputes. i also have a $200 fingerhut account that i havent used in 5yrs maybe. at this point should wait and allow lexington law do their work and see the outcome or try to pay off debt to boost my score.My total debt is $1661?

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paying you debt is always a good way to boost your score. But it looks like you need to do much more than that. You should let the law firm do their job and try to remove as much of that as possible to see the best credit results. 

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From your other post that you don't have any Bank credit card or positive account reporting, and you been turn down by CapOne and Barclay already, then you are looking at a secured card. Four collections aren't huge hurdles to overcome, you want some positive accounts/payments on your report to counter balance the baddies, by using that a Fingerhut card will help, if you don't want to making purchases on it? you can push one dollar payment every so often from your bank to Fingerhut, so it will report and show some actives, I do that with my one and only store card to make it report.

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Depends on what kind of debt or types of account they in? it might or might not help with your scores. Paying off a collection account has very little if any scoring benefits in vast majority of scoring models out there, however paid collections usually looks bit more favorable to potential lenders.

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Auto loans is probably one of the easiest form of credit to obtain, it's far easier to get 20k auto loan than 1k credit card, but at what interest rate is whole different story tho. I would use CapOne's pre-approve auto loan to gauge where you stands now, it's a soft inquiry, just to see if you will be approved or not, if you are pre-approved? At what interest rate you are looking at, if your aren't pre-approved? Then you have more work to do, and need to wait longer. I am not suggesting you actually use its offer, but the outcome as reference to give you some baseline and barometer of your credit.

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