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Posted in Auto Loans
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Shay006

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I have less than $1000 in collections for medical debt, from less than 3 years ago, what should I do
I want to get a car loan. I was in an accident in September of 2013 and totaled my vehicle, which I had my grandmother co-sign for. My credit is a 530, and I have about $740 in medical collections. I can only afford to make payments on it at this point but I read that if you acknowledge it, that the 7 years will start from the time of acknowledgement. So the 3 years that it has been in collections will not count. I was going to get a credit card, use it for gas and pay the minimum payment to build credit while I pay off my debt but I don't know that this is the best option to raise my score. As of right now, I only pay rent, my cellphone, and cable/internet. So I owe way less than I make a month. What do I do to get to where I can be approved for a car loan?

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1)  pay your collections off ,   get them out of the way before you do anything else,  request a pay for delete.

2)  save your money up to buy a car,   no need to have anyone co-sign for you.   do it on your own.  you don't need a new  car.

3) do you have a monthly budget now?  if not, start one,  know your income and what you spend every month.   this is not a short term task,  this is forever.

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