Reply With QuoteHowever, financing a car will in fact help your credit rating, if you make all your payments on time for the life of the car, as far as I can tell that's huge for your credit score and honestly takes up most of what you need.
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interest on interest. if you do not pay the interest you owe in full, then the interest is basically tacked onto the principal, so you will have to pay interest on a larger principal going forward. repeat over and over and you can see how the problem is "compounded."Originally Posted by Razor Ramon
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However, financing a car will in fact help your credit rating, if you make all your payments on time for the life of the car, as far as I can tell that's huge for your credit score and honestly takes up most of what you need.
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it's less of an issue if you really have a 0 balance but total credit available is still a factor. also, what if shit happens and you have to max out the one card you have? now you have sort of shitty credit exactly when you might need a loan. but if you had 2-3 other accounts with 0 balances overall you would be in much better shape both in terms of score and availability.
there's no legit financial reason to close accounts. lock them away if you're worried the number will get stolen or you won't remember when you charged with what card or cut them up if you can't trust yourself or someone you live with with them.
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if your credit is good enough to begin with to get a very favorable rate...ie one lower than or at least close to what your money can earn on the open market.
but if you have shitty credit, your car loan is going to wind up inflating the cost of the vehicle so much that any credit improvement is not worth what you have to spend on it.
credit is very self-fulfilling this way. it is easy to keep good credit when you already have it if you keep up good habits, and even if you make a few missteps you are much better position to clear them up. but bad credit can be very difficult to dig out of.
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According to my credit report my score is around 750 in Fico, so it seems to be pretty good, so I think I should be ok there. But I get what you're saying, I hope to pay off the car in 3 years, and use it for 5 years, versus leasing a car for 5 years I think I'd end up in a better position. But yeah I understand what you're saying. I'd save more money if I had the money right off the bat and never had to pay interest.
I agree whole heartedly, I was just curious if you made your amount borrowed 0 then closed a card would you be ok or at least not take a huge blow.it's less of an issue if you really have a 0 balance but total credit available is still a factor. also, what if shit happens and you have to max out the one card you have? now you have sort of shitty credit exactly when you might need a loan. but if you had 2-3 other accounts with 0 balances overall you would be in much better shape both in terms of score and availability.
there's no legit financial reason to close accounts. lock them away if you're worried the number will get stolen or you won't remember when you charged with what card or cut them up if you can't trust yourself or someone you live with with them.
metal = rude
Spoken like a true car hating New Yorker. A car isn't an investment, but it is a necesity for people outside of NYC, and as long as it fits into someone's budget financing a car is not a big deal. It also helps establish more credit. Rates are generally pretty low if your credit is not already fucked up, and automakers often offer special rates below market, even 0%.
Interest that is accrued in a compound.
Or in your case, you have an interest in 2 or more girls
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you hope, sure. but what if the car breaks down? or it gets totaled? now you are paying for something you don't own.
metal = rude
they have warraties if they break down, and gap insurance if the totalled value is less than the amount left on the loan.
A) Don't buy American cars.
B) Insurance.
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