A bit lost... Fixing too late?

[StevenGG]

Afternoon myFico,

            Its been along time since I've been able to do much in life/credit.. Ive been at my current job for about 1 year now making 55k. Excited to have a baby on the way I have been working and working and just saving. Realizing I really need to get things in order Im trying to figure out my credit and see about fixing what is or isn't there?

I tried obtaining a report through here and It says one was unavailable. I then went and purchased a TransUnion report on their website and figured that's a start. I have 4 things on my report all negative I assume. 1 Toyota Repossesion in 05' ( Says It is estimated to be removed from my credit in 7/12 ). Then I have 2 Medical that are $660 and $795 that I am wishing to pay off so they can be removed. Last thing is I believe an old Auto insurance debt of $195. I have no problem paying that off as well. Other than that I have nothing else.. I have no credit cards. I have a lease in my name and At&t cell phone in my name though I dont believe any of that matters. I feel as though now that I'm 31 once the Repo falls off and I pay the other 3 balances Ill have 0 credit as if I was fresh 18? I dont know.

A "free" report said i have around a 565 , 635 and 603 credit score? From what I have read here, I should not go off those numbers obtained through freecreditreport.com.

Lastly, Me and my fiance' share 1 vehicle but it is about to die any day now so we thought about getting a New Car. Kicker is we would like to get a Scion xB as we feel its practical for our new family addition, cost, gas etc.. I can put 5k downpayment. But, my reposession is of that a 2005 Scion xB. Will that make a difference? Should I wait and pay off the 3 open accounts and then go to the dealership? I have an appointment to go to SECU ( Credit Union ) today to open up an account and figured in the next 6-12 months I could refinance through them since I would imagine a high APR for an Auto Loan I would receive now?

Please, any comments and suggestions are welcome.

[FrugalRican]

Congratulations on the incoming baby.

I'd say that you should keep your appointment with SECU. I don't know if they HP upon opening an account, but if you do, that's one way to find out exactly where you stand.

You could also try getting a secured card as well, since it'd give you another option for a revolving line of credit.

Those numbers you got from that site, aren't accurate at all, just a guesstimation.

And to clarify something, once you pay off delinquent debt, it doesn't automatically disappear. More likely, it will stay there and be marked as "Paid", so it will still affect you adversely on your credit report, so you technically won't be "fresh" in the credit department.

I'll be honest based on personal experience, the CU or even a dealer just might deny you a loan if the only thing on your credit report are negative tradelines and not a single positive, but that's something SECU might want to discuss with you upon meeting. The lease and the cell phone bill won't report as positive tradelines, but fail to make a payment or stop paying altogether and I bet they'd report it as a negative.

Try to read up about PFD's and GW's before paying off that debt.

And welcome to the forums.

[K_J]

First congratulations, Nothing is too late, and remember its a slow process. I will advice you to open a secure credit card right away and try to PFD those collectino. Good Luck