I am owner financing a property from a family member. Two years ago I sold my home and bought this home . I had medical bills and fell behind on my payments many time so credit is not good . I did sell my home but the damage is done to my credit ,I don't have any payments as far as credit just old collections . All are more than 5 years old , but now I would like to get a loan for the house I am currently owner financing. I have some savings but do I pay off the collections or save it for down ? Do I get a secured credit card to build my credit? Help score is 585 Will I even be approved for a loan at that score?
I would get a secured CC to start building some positive credit.
I would pull your full credit reports from annualcreditreport.com (don't pay for scores!) so that you can see when the negatives will fall off.
You are saying the collections are 5 years old but how old are the other negatives?
It sounds like you need to think long term on getting your credit back to acceptable.