Sell my owned car & get a loan to boost my score??

[iamdetermined]

Hello everyone. I currently own a car that I can sell & get about $18k for it. I'm trying to figure out the quickest way to boost my credit b/c I want to purchase a home next year. Had I known then what I know now, I would've bought the house first then the car but that's irrelevant @ this point. Lol. I'm thinking it's kind of stupid to sell my car & then have to deal with a car payment, but I do know that car loans help increase credit scores, & I can also pay down some of my debt a lot quicker if I sell my car. I don't plan to purchase a car that is too expensive either so that I can pay it off quickly. I have 2 credit cards that are in good standing, a few good-standing student loans & a few baddies. Any suggestions or has anyone been in a similar situation & care to share what worked for u?

[marty56]

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@iamdetermined wrote:
 I'm thinking it's kind of stupid to sell my car

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You answered your own question.  Even if you did sell, it may not help your score much based on the derog info and it will raise your DTI which could kill you chances to get a mortgage,

Focus on the deorg info and then the util.

[iamdetermined]

Thanks for replying & yes...it makes sense when I think of it b/c I don't want to add more debt before I eliminate what I have. I just wanted other people's opinions. I was also thinking about selling it, paying off some debt, buying a car (not lease/finace) that is cheap & reliable until I pull my score up & wait to lease/finance a new car after I get the mortgage.

I'm going to take care of the derog's asap (I'm GW a couple of companies to death! lol) & go from there.

[pizzadude]

I agree with Marty on this ~ and it isn't certain that adding a installment loan would significantly boost your score, even if it is your first installment loan.    Your AAoA would be reduced by adding a new account.

Just focus on cleaning up your reports for now.

[iamdetermined]

Thank you @pizzadude. My credit union has referred me to a company that is supposed to assist me with cleaning up my reports (I already had 5 baddies removed since April!!) & I am working on 10 others, mostly late pymts from the past.

My biggest issue is having the lates removed from accounts that have previously been paid. Univ. of Phoenix- I want them to be deleted from my CR altogether but they are difficult to deal with. I've sent plenty of GW letters, via email & mail, to UoP (paid collection), Macy's (paid charge off), & First Premier (paid collection) & all 3 have denied my request.