Dear Travis,
Paying down debt, but not necessarily closing all accounts, will definitely help raise your credit score. But depending on what your past credit problems were -- a repossession, debts sent to collection agencies, etc. -- that will only go so far.

Because of the subprime mortgage problem, auto loan lenders have tightened their standards for making loans at prime rates. To get some of the best deals, you'll need a credit score in the 700 range, if not higher. With a credit score in the mid-600s, you'll almost certainly find a willing lender, but the interest rate could be 10 percent or higher.

Here are this week's reader questions:

• 5 great used cars for bargain hunters • How can I lower my payment? • What credit score gets the best loan? • Should I dump my loan on Dad?

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.