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Christinameana5

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Should I use extra money for a down payment or to pay down debt?
Hey guys,

So I have a pretty basic question here about debt/credit scores. Basically, my credit score is total garbage at a 508, a huge chunk of which are medical bills in collections. I am also in the market for a new car. My question is, is it smarter for me to just save up for a decent size down payment on a new vehicle or start trying to finally pay off some of these debts? I'm not commited to getting a new car anytime soon so I'm not looking for a way to get a car right now necessarily, I'm genuinely wondering which would be smarter for the rebuild/health of my credit? Thanks so much!! :)

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I recommend learning how credit works and how to improve your score.  Since that is the focus of Credit Karma and they have very informative articles plus financial tools to help, it would be wise to take advantage of that by utilizing these items..  It worked for me and I got a new car last year at a low rate. Right now, you will not be.able to get a loan no matter how high your down payment is. 

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Of course it would be smart to rebuild your credit. I would most definitely work on that first unless you like to get denied credit.

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