Down and out, need your help!

[BadPoorWorse]

Hi,

I have horrible credit, my score is in the 560 range, I was recently approved for an auto loan, with 25 percent interest and a quarter of the car price as down payment, but i can't get approved for anything else. I have like 30k in a student loan debt, from 2007, a few hospital bills, and some other stuff left unpaid. I have employment, but can barely make ends meet as it is, much less pay for stuff, from years and years ago. But at the same time, I need to do something before its too late. I am 27 years old and am looking at starting a family soon. I need any and all advice on what resources i can use, and what i can do individually to get get my score up. As i said, paying any of these debts in full is not an option and won't be anytime soon. I thank you for your time and advice, and hope you can all direct me in one way or another.

[Dbremer]

There is hope! My CS is currently in the 540s but I realized I had to buck up and get it together. It can be overwhelming. I'm in no place to give advice but in two weeks I've managed to get some baddies deleted and it's given me motivation to charge on through. You can do this!!!! Are your med bills/collections paid?

[Relique]

I have definitely been there. In regards to credit cards, when my score was below 600 I could only get approved for secured credit cards. I know that some people have had some luck getting subprime unsecured cards with similar scores like Capital One Platinum and store cards (Target, Walmart, Best Buy.) 

Unfortunately, I got turned out for those and the inquiries on my credit report have certainly made things worse. I recommend secured cards to start with as they have great approval rates, Bank of America and Capital One may even offer you a partially secured card with a small deposit for a slightly higher limit. I also recommend credit union secured cards as they tend to be more lenient with limit increases, graduating to unsecured card, and approval.

In regards to the auto loan, the interest rate is very high. If you wait to reach low 600s you can probably get a new vehicle for a much lower interest rate. You just have to get the ball rolling with some positive history. I would personally not accept a loan offer like that as you pay double the sticker price on a four year loan. If I found myself in a situation where I had no other transportation I would probably use public transit or get rides to work until I can buy a beater car for cash while I work on my credit a little more.

I wish you the best of luck.

[down_n_out]

Been there so many times, still there because of serious illness. If you don't have kids and other obligations If I were you I would SERIOUSLY look at getting a second job to focus that cash on credit clean up and reliable car if public transit isn't an option. If you have to take the high interest car loan once you get your credit cleaned up you can refi the car loan for way better rate. Before he even had the car a year my husband got those offers,  from the sub prime car loan and the new refi rate offers were less half of what we were paying in interest. 

Start looking at using what ever you went to school for and see if you can expand on that with a few classes or maybe online courses for a certification or something to get yourself in better paying full time job. This would be my plan if I were you. That way when your ready for family your in a much better position. You can do it just don't let anything or anyone distract you!