Repair Credit to Get a New Car

Lease does usually take a higher credit score. I would *assume* they are looking for a score around 750, at least over 700.

Whatever you do - do not pay someone else to "repair" your credit. Most of what they do you can do yourself easily. Every year you're entitled to a free copy of your credit report from all three reporting agencies. Make sure that everything on your credit is correct. Make sure the repo you paid off is showing "paid in full".

https://www.annualcreditreport.com/cra/index.jsp

This is the actual site the FTC refers you to. You can see for yourself from the FTC website.

http://www.ftc.gov/freereports

Don't fall for all the bunk "free" sites. They will try to charge you for your score, or more info, or some other BS. You have a right to a free copy.

When you review your credit, you will have the option to dispute or challenge any items that aren't correct. Anything that the balance is reporting wrong, that's not you, that you don't recognize -- challenge it. The creditor must provide proof the debt is accurate and yours or it will be removed from your credit.

Here is detailed info on how to dispute incorrect info http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.pdf I've never had to do past the first step -- which is let the reporting agency know. I had a two inaccuracies last time I looked and they were both removed. I looked at my report online and was able to dispute them online. It was pretty painless.

After you clean your credit up you could pay to get a copy of your "score"... that is entirely up to you. But I would look at your credit for errors first before paying anyone any money to view your score.

Good luck!

I may be wrong about this, but I actually think you have to have better credit to lease a vehicle than to buy one. I take it you know your current credit score, so you should inquire with some banks about what score you need to qualify for a loan. I would look for a good used car to purchase. Depending on how low your score is now and how high it needs to be -it could take 6 months or a year or a few years. It will also depend from a lender's standpoint what your salary/income is; how long you've been at your current job; and what else you own money on -mortgage, any credit cards, any other type of loan, etc.

I don't know what kind of credit score you need. But I do have a suggestion on how to repair your credit. If you can take $200.00 or $250.00 and go get a Share Secured Credit Card with your bank ( I use a Credit Union). You are basically borrowing against your own money and you make the payments just like a credit card and pay interest like a credit card. They report to the credit bureau and your score goes up and up.....

I'm not sure about where you live, but here, we have auto dealers that offer buy here/pay here situations. We have done this ourselves. It's not necessarily because we had "bad" credit, we had too much debt-to-income for big lenders to even consider us. We purchased a VERY nice pre-owned vehicle with ALL the bells and whistles for under $10K that way with very little money down ($800) and had our option of making weekly, bi-weekly, or monthly payments. We chose the weekly option because it was easier for us to come up with $60/week as opposed to $240/month. In your situation, I would see if you have this option.

Honestly, yahoo had posted on here a few days ago that the previous "good" credit score of 680 is now a 720 or 740...not sure which, but the credit score requirements have gone up. Also, don't lease. You have nothing to show for all of your money once your term is up and you're very limited in your mileage and have fees to pay if the vehicle is ever damanged in any way, etc. Shop around. There are some great used vehilces out there that look brand new and are not only easier on the checkbook, but with the insurance company as well. MHO

I suggest you do what Heather suggests and then go into the dealership and be upfront with them. They are going to pull your credit and will tell you what will work better for you. You may have to go through second chance financing, but that will be up to you.

I'll talk to my buddy that works at a dealership and I can gather plenty of info for you. He works and lives downriver.

The only questions I have are, why the dealership didn't automatically take back a brand new van that ended up in too many repairs... Also, why the repairs weren't covered by warranty if new?

We had to file bankruptcy due to my husband being laid off for a year (and I was pregnant with our 4th child before he was laid off). So I'm not sure how long it will take, but almost every dealership out there can try and get you credit. They have the resources to work with different lenders to get you approved. Don't go to some scam place that only announces this on their commercials...other "normal" dealerships can help you out too. I know Honda of Lansing and Champion Chrysler does. Good luck!