auto

Keep car until credit score improves

Dear Terry,
I have a 2000 Toyota Corolla that I have had for almost three years. I am looking into trading it in, but I don't know how to go about it without having to spend $10,000 to $15,000 to do so. Unfortunately, I have a bad credit score. I am wondering how to go about this.
-- Jennie

Dear Jennie,
Do you owe anything on the Corolla? When you mention $10,000 to $15,000, is this the difference between the value of your Corolla and the new car you want to buy?

With a poor credit score, my suggestion is to hang onto the Toyota, clean up your credit score over the next year and then look to trade.

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Here are this week's reader questions:
  • Car odometer may be robbing your cash
  • Who can help solve my loan fiasco?
  • Can I void my wife's car contract?
  • Will bad credit sabotage my trade-in?
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter.

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