Judgement Lien, Car Loans, and Credit Cards....looking for advice

[super99]

I am looking for some advice on my next step of what I should do.  I have been working on bringing up my credit score but have some things on my credit report that are not pretty.  Here are the negatives on my report:

• Judgement Lien - filed in 2008 but I just recently paid it off and I also have a Release of Judgement Lien.
• Carmax Car Loan - about a year ago I was having major financial problems and was having a really hard time making my payments on time.  Eventually, my car was almost repossed but instead Carmax let me keep the car and reported the loan as a charge on my credit report.  I make payments every month on time, but it is basically paying off the charge off.  (Again, I still have my car....I'm confused by the scenario but I'm happy that I still have my car).  On my credit report it is showing my account status to be "Closed" and payment staus as "Charge Off'.
• I have four collection accounts that I am working on getting paid off, I hope to have those paid off by the end of the year.

I am trying to build up my revolving credit because I have none.  For recent activity:

• My FICO score is 600, this is an improvement from two months ago.
• I have student loans being reported on my credit but I have not started paying on them yet because I am not finished with school.
• I have an old car, mortgage, and credit cards that show paid in full and all were in good standing on my report.
• I just got approved for a secured credit card with Cap One with a $99 deposit down in return for a $200 credit limit card.
• I also was just approved for a car loan with Santander finance with a ridiculous 18% interest rate!!!  UGH!

My questions I need help with are:

1. Should I trade my car in and buy a new car with Santander and their ridiculous 18% finance charge so that the charge off from Carmax that is on my report right now is wiped away?
2. Is it possible to remove the judgement lien with the Release of Lien that I have and what steps should I take?
3. I would like to have two other credit cards for revolving credit lines, any suggestions on where I should go to get one?

Any help is very much appreciated!  I have been reading through all of the threads on here and everyone is so helpful, such a great and insightful forum!  I love it!

[guiness56]

If you can at all help it, stay away from Santander.  They are a horrible company, IMO, and if things get tough they play hardball and absolutely will not work with you.  They have also been known to do unethical things as far as reporting, repoing etc.  That is on top of the interest rates they charge.

The Charge off from Carmax will never be wiped away.  It may be paid but will still be a charge off.

Find out if your state allows for vacating judgments after satisfaction.  Or a tax lien if that is what it is.

You can try BoA or Wells Fargo.  Not sure how they are to deal with.

If you can afford a PFD for each of the collections, go that route.  Send them a letter asking to pay in full for a deletion from your credit reports.

If not, once paid, start sending out good will letters asking for them to be removed.

Credit rebuilding is not an overnight event.  It will take some time and a lot of patience.

[pizzadude]

I agree with the response from guiness, also regarding the car loan ~ charging the loan off is an accounting process, it's unrelated to whether they choose to repossess the car or let you keep it. Unfortunately a charge~off is going to have a major impact on your FICO score. Have you tried any goodwill letters to see if they will modify their reporting ?