Finance/credit question?

I needed a co-signer when I bought my car because my credit wasn鈥檛 strong enough. After I bought the car I got laid off and got into debt. My score was like a 580. I just paid off 2 credit cards that were charged off, and a hospital bill. I鈥檓 going to continue to pay for my car ontime and pay it off. Im also getting one of those secured credit cards to rebuild my credit. My question is, my car will be paid off in 3 years. If I pay both these things on time, do you think my next car I can get by myself? If I paid off delinquent accounts, and wait 3 years do you think it will be a problem?

Thank you

Paying the charge off definitely helped but you will probably still require a cosigner. If you do get a loan on your own you will a heavy price on the interest rate you are charged so you may be better off with a comaker because it may help some on the interest rate.

If you go through a dealer you are more likely to need a cosigner than if you went to a local bank where you can sit down face to face with the person making the loan. You can explain to the loan officer what happened and any competent lender can look at the credit history to see that something happened in a certain time frame to back up your story.

A small community bank like where I work is less likely to require a cosigner (providing your story checked out) than one of the bigger ones like Wells Fargo, Bank of America, etc.

it probably will, at the time of your next car, get a copy of your credit report (all three bureaus must provide you one free copy per year)..you want to have no collections on your account so as soon as you pay one off, pester the credit company about fixing your credit report....but if all goes as you say, then yes, you probably will be able to do it on your own...

Unfortunately I don't think you will be able to if you are buying new. You might be able to get a low priced used, but that's it. Unfortunately bad credit hits take 7 years from the time of being paid off to leave your credit.

as long as you pay on time you should be ok.

I think you have a good plan right now. Your credit should bounce back. Usually 12 months of steady non-late pay is all that it takes to make a jump up in score. Be aware that payment history is only part of the story. Monthly income, time on job, and available high credit is also important. When I say available credit....what I mean is the amount of credit available to you vs. the amount you actually use. Having $5,000 available and only using lets say 1800 is a very good thing on your credit.
Stick with paying everything on time and if your employment is not stable then try to stabilize it now and you should be in good shape in a couple of years.

Good Luck!!

The delinquent accounts don't help, but credit, as I understand it, is not having balances - it's whether or not you make your PAYMENTS.

So next time you can probably do it without a co-signer, because you have a credit history, but you might not get a terrific rate.

What u need to do is to first get a copy of your credit report (and you can get that free online) and clear up all the negative reports. Your report will also tell u how long any negative report will be there for and so will give you an idea how long before your credit will be restored. While you are working on cleaning up your credit, enjoy your old car because now you can drive with the freedom of not having a car payment. Insurance is enough. Buy a new car after you repair the credit and get your score up. The higher the score, the lower the interest rate.

I suggest you to buy your next car with your own cash.
I suggest you to buy Health Insurance and open a HSA.
I suggest you to increase your credit score to above the National Average.

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Yes, you will be able to finance without a cosigner.
When you pay your delinquent accounts, ask that your delinquent accounts be deleted from your file. Creditors will often do this when you follow through with payoff agreements. Also, when you pay off delinquent accounts, the creditor will not keep you on file for long. Remember, credit bureaus have to verify information or delete it from your file. If you no longer exist in a creditor's file, there is no way for the bureaus to verify info.
And, it will be easier to finance a new car than used, contrary to other answers you may have received.

Doing the right thing and honoring your commitments will go far for you.

Yes, you will no longer need a co-signer if you pay all of your bills on time.

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