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Old 08-26-2010, 09:06 PM
 
531 posts, read 2,892,126 times
Reputation: 579

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How can I benefit from a high credit score? Mine is 798.

I don't have any credit card debt so transferring a balance is not an option for me.

I have a car loan with an interest rate of 6.74% with a payoff date of March of 2014. Is there anything I can do with that? Are refinances ever done on car loans? Is 6.74% a decent rate?

I have a 7/1 ARM that I refinanced into a year ago, rate is 4.99%. I'm not sure it makes sense to refinance again but possibly soon, depending on what happens with rates. One of the challenges with refinancing is the LTV ratio on my property is not good.

I have an American Express Blue Cash Rewards card that I use for every major purchase. I pay the balance on that completely each month. One thing I thought I could do is to get a 0% into APR credit card for purchases for 12 months and basically carry a balance on the card without paying interest so I can build up savings, etc. But then I'd just need to pay that balance off in a year, so not sure if that makes any sense at all.

That's really all I have for debt. Is there anything else I can do? How can I benefit from a high credit score?
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Old 08-26-2010, 09:57 PM
 
8,263 posts, read 12,153,882 times
Reputation: 4799
Interest rates, and maybe employment and insurance.

There was just an article I read on this about FICOs, apparently above a 780 is the promised land for best rates and it's not worth worrying about getting any higher.
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Old 08-26-2010, 11:20 PM
 
Location: 23.7 million to 162 million miles North of Venus
22,826 posts, read 12,012,912 times
Reputation: 10145
I would suggest checking into a refi on the car loan, you might be able to cut that rate in half. If you have a credit union you might look into their car loans. If you don't have one you should consider joining one. If you are active or retired military (any branch), or, if there is anyone in your household or family that is active or retired military who has an account with Navy FCU then you might check that one out, you can join under a family member or household member. Alliant CU is one of my favorites, you can join them by joining the National PTA.

When going with a CU, you might get lucky and have one single pull on your reports for opening an account (checking, savings or just a share draft), doing an app for the car loan, and, for one of their credit cards.
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Old 08-27-2010, 01:52 PM
 
31,672 posts, read 40,893,182 times
Reputation: 14418
You can know and understand that you are a preferred customer. As others have said you will benefit in future transactions. Congrats and it is well worth being so credit worthy.
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Old 08-27-2010, 01:56 PM
 
Location: San Jose, CA
7,688 posts, read 29,054,163 times
Reputation: 3629
Mortgage rates are not going to go much lower than this. You should be able to get a 30-year fixed for a rate similar to what you have now on your ARM.

The car loan can certainly be refinanced. Chase has refi rates at 4.17% for 48 months in my area, which could save you possibly a couple thousand dollars.

I would skip the credit card thing. They want you to not be able to pay at the end of the 0% term.
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Old 08-27-2010, 06:26 PM
 
Location: Fairfield, CT
6,981 posts, read 10,885,064 times
Reputation: 8821
Quote:
Originally Posted by usedtobeanyer View Post
How can I benefit from a high credit score? Mine is 798.

I don't have any credit card debt so transferring a balance is not an option for me.

I have a car loan with an interest rate of 6.74% with a payoff date of March of 2014. Is there anything I can do with that? Are refinances ever done on car loans? Is 6.74% a decent rate?

I have a 7/1 ARM that I refinanced into a year ago, rate is 4.99%. I'm not sure it makes sense to refinance again but possibly soon, depending on what happens with rates. One of the challenges with refinancing is the LTV ratio on my property is not good.

I have an American Express Blue Cash Rewards card that I use for every major purchase. I pay the balance on that completely each month. One thing I thought I could do is to get a 0% into APR credit card for purchases for 12 months and basically carry a balance on the card without paying interest so I can build up savings, etc. But then I'd just need to pay that balance off in a year, so not sure if that makes any sense at all.

That's really all I have for debt. Is there anything else I can do? How can I benefit from a high credit score?
You've hit on the central contradiction of FICO. The best way to get a loan is to not need one. And the best way to have a good FICO score is to have little debt.

There's little you can do or should do. Cars generally don't get refinanced, because they're a depreciating asset, and the older they are, the higher the interest rate (to compensate for the risk of declining value as the car gets older).

As for your home loan, the rate seems kind of high for today's conditions. Maybe you should consider refinancing, especially if you can afford the payments on a 15-year mortgage. The rates now for people with good credit are below 4%. But if you're LTV is too high, your FICO score won't matter, so that option may be out.

Just rest assured that you will benefit from your high credit score if you need to borrow again, and probably in other ways, such as with lower car insurance rates.
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Old 08-27-2010, 08:14 PM
 
48,505 posts, read 96,496,294 times
Reputation: 18301
Sure iof you have a good fico and have good income to debt ratio you can go to moast credit unions and refi. many are advertising doing just that.In fact you can get a better rate on a three eyar loan than longer really. Doesn't hurt to check.
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Old 08-27-2010, 08:16 PM
 
13,811 posts, read 27,305,492 times
Reputation: 14244
With a score in the high 700's you can pretty much get as much debt as you want as long as you meet the income qualifiers. Hell my insurance company was going to give me a check for $40,000 to buy a car when my income was $30,000/yr...

Credit scores don't mean you have money (I am the perfect example) they just mean you are good with paying back any money you borrow.
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Old 08-30-2010, 10:24 AM
 
193 posts, read 539,879 times
Reputation: 136
I refinanced my car loan and the rate dropped from 5.9% to 4.5%. I only wanted to take off my co-signer to release him from the loan and the better rate was just another plus. Didn't cost me anything to do it. (FYI This rate was from early last year; rates are better now.)
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Old 08-31-2010, 08:48 PM
 
4,246 posts, read 11,978,336 times
Reputation: 3150
I would refinance the house because Arms are retarded. And refinancing a car has stipulations. Go to your banks site and see what they are.
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