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No one here will really be able to answer your question because we don't know your true credit picture. Are you implying that you had to file bankruptcy or that you had to arrange some sort of reduced-payment arrangment with your creditors?

I'll assume that if you have the ability to pay off your "evil debts" by the end of this year and save $10K in cash during the following year, you have enough income to at least put yourself back in good standing with all your creditors. If that's the case, your credit picture will look better every month you remain current. If you're waiting until 2010 to buy a new car, your credit score may not be restored completely, but it will have improved a good deal. Under that scenario, you shouldn't have a problem obtaining financing, even though your interest rate may not be in the first tier.

My concern for you is that you'll put yourself in a poor negotiating position because of concerns over your credit. I recommend that when you're ready to buy, shop several banks for car loans before you go to the dealership. If you can get pre-approved elsewhere at a good interest rate, you can focus on negotiating a fair price for the car, then taking or leaving the dealer's financing. Do not walk into that dealer feeling desperate because they WILL take advantage of you.

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You have a few things here that are just jumping out and slapping me in the face. First, you traded an '06 on and '07?? What a horrible mistake! And this leads to the 2nd problem: "69k miles later with 59 payments to go." WHAT??!! How in the world did you put 69k miles on an '07?? And how in the world do you have 59 payments to go? I assume you financed, in this case, at least 72 months. If you have to finance a Scion for 72 months, you should NOT be looking at new cars, let alone trading them after just 1 year! So you apparently rolled a WHOLE LOT of negative equity from the Xa into the Tc. OUCH! There is just NO GOOD REASON to do such a thing.

Third thing ... you want to save up $10k to put down on a $15k car and have $200 payments. If you can pay down this bad debt you speak of and save up $10k in such a short time, why not just hold out and save up the full purchase price? No payments to worry about!

You also haven't explained how you can do all this while having a tough time with your bills. Did you get a new job? I hope its a heck of a lot closer to where you live to avoid 69k miles per year!!

here's the thing: you need to stop this cycle! Drive that car into the ground and forget about putting yourself further into debt!

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Have to agre with Qbrozen a 100%... Your credit will take care of itself as long as you are paying what you owe first!!!

Buy a latemodel with cash and you will be far better off!! Or pay off your current vehicle in full and tarde that for a new one to get your payments to $200 a month.

Good luck GP

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Credit cards can actually be great to have. If you keep them open and paid on time, they can really help out a credit score. The problem arises when you start getting behind on those payments.

If you want your credit to go up, pay your bills on time and have a good debt to income ratio. Don't max out those cards and don't go crazy opening new lines of credit. I don't think that purchasing another car is a very wise use of your money.

Good luck!

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If you have the ability to save $10K then you should not be having trouble making your current payments.

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