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Thinking of buying a new car and one of the rebates requires I finance through the car manufacturer. I would be capable of paying off the car after the required minimum period of 3 months after which I'd incur no penalties for paying down the loan.
The financing is 3.9-4.5% for a minimum loan amount of $7,500k. I might do 10K.
I know a loan can help establish a good payment history and possible boost credit score. However would the boost to my credit score be worth paying 3.9% or more?
I'm 25yrs. old with just a credit card currently. I'll be moving into an apartment in a few months where I'll have utility bills that will hopefully establish more credit for myself.
If anyone else was in my situation, would you keep the loan ongoing to establish credit even if you could pay it off?
Thanks!
If I understand correctly a loan would be issued to you and for the first 3 months there will be no interest accrued. In that case the loan should show on your credit report and when you pay it it will show as paid in full which is great for your credit. Keeping the loan open with a balance will worse for your credit than paying it off. For long term credit history just use your cc every month for non-discretionary expenses like gas and utilities and pay it off at the end of the month.
sorry but I disagree. Why would anyone want to enslave themselves to such a system as FICO??
IMO it's better to be debt free and live free of the bankers and their corrupt enslaving loan system. Fight Back!
We are talking about 2 separate issues so I agree 100% with you about living as debt free as possible.
I'm down to 2 years or so on my mortgage and will then be 100% debt free and even then I will be impacted by whatever my FICO score is because I have to drive and must buy auto insurance. I also have home insurance and I'm not going to go without that.
Lastly, it's really nice to have my credit card (that I pay off in full every month) so that I don't have to haul around a lot of cash and can just write one check at the end of the month.
So with regards to the OP...they can potentially GAME the system by paying a bit more interest yet lowering their insurance rates. Not sure how you can disagree with potentially saving a couple hundred bucks....and then say "fight back". Having a good FICO score and then living an essentially debt free life is indeed fighting back.
Having a good FICO score and then living an essentially debt free life is indeed fighting back.
Not to belabor the point but there is no way in hell I, or any other thinking person young or old, should buy into, or support, the FICO system of enslavement.
If you listen to the youth of today then you know the FICO brainwashing is complete. All that is left is to drag old coots like me into the system and I say it ain't happening!
Remember this.......the bankers can't hold us hostage to their whims via FICO unless we allow it. I don't know about you but my money ,and my liberty, is just as good as anyone else's so if they intend to steal it there's gonna be war.
We are talking about 2 separate issues so I agree 100% with you about living as debt free as possible.
I'm down to 2 years or so on my mortgage and will then be 100% debt free and even then I will be impacted by whatever my FICO score is because I have to drive and must buy auto insurance. I also have home insurance and I'm not going to go without that.
Lastly, it's really nice to have my credit card (that I pay off in full every month) so that I don't have to haul around a lot of cash and can just write one check at the end of the month.
So with regards to the OP...they can potentially GAME the system by paying a bit more interest yet lowering their insurance rates. Not sure how you can disagree with potentially saving a couple hundred bucks....and then say "fight back". Having a good FICO score and then living an essentially debt free life is indeed fighting back.
Not to belabor the point but there is no way in hell I, or any other thinking person young or old, should buy into, or support, the FICO system of enslavement.
If you listen to the youth of today then you know the FICO brainwashing is complete. All that is left is to drag old coots like me into the system and I say it ain't happening!
Remember this.......the bankers can't hold us hostage to their whims via FICO unless we allow it. I don't know about you but my money ,and my liberty, is just as good as anyone else's so if they intend to steal it there's gonna be war.
DOWN WITH DAMN FICO!!!!!!!!!
The OP is faced with a dilemma and I have given logical reasons to pay interest on his loan IF it might save him money elsewhere.
To insinuate I'm not a thinking person by USING my good FICO score while remaining debt free to save me hundreds of dollars of years is hillarious. I might not like the system but as long as it's in place I'm not going to be stupid about saving money.
The whole FICO system comments are worthy of a completely different thread somewhere in perhaps political or great debates.
If you decide on the car loan, make payments for at least 6 months. The idea is to show that you are reliable in making regular payments over a long period. Also, the reality of FICO scores is that the world uses them for other things besides credit and you have no control about it. Establishing a good score is in your best interests since you're just starting out.
Not to belabor the point but there is no way in hell I, or any other thinking person young or old, should buy into, or support, the FICO system of enslavement.
If you listen to the youth of today then you know the FICO brainwashing is complete. All that is left is to drag old coots like me into the system and I say it ain't happening!
Remember this.......the bankers can't hold us hostage to their whims via FICO unless we allow it. I don't know about you but my money ,and my liberty, is just as good as anyone else's so if they intend to steal it there's gonna be war.
DOWN WITH DAMN FICO!!!!!!!!!
Mortgage and even job require FICO. I could go the route of "not buying into it," but then a potential employer will wonder why I have bad credit or no credit history. That could cost me THOUSANDS a year in potential income, but hey, at least I saved a few bucks in interest and am not a slave to "the man." Oh wait...
Mortgage and even job require FICO. I could go the route of "not buying into it," but then a potential employer will wonder why I have bad credit or no credit history. That could cost me THOUSANDS a year in potential income, but hey, at least I saved a few bucks in interest and am not a slave to "the man." Oh wait...
I say get the loan and trust me, it pains me to say this. FICO scores make me angry and I already ranted about this. Sadly, it does matter if you choose to purchase a home in the future. I agree with others that the system is corrupt, wrong and so forth but it all depends on whether or not you want to save yourself money. Sometimes you have to play the game. Get the loan, and pay it off early. Save yourself some interest but boost your FICO at the same time. I have a nick name for FICO but I can't say it here.
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Not sure how you can disagree with potentially saving a couple hundred bucks....and then say "fight back". Having a good FICO score and then living an essentially debt free life is indeed fighting back.
