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Smart Shopper Credit Scores and Vehicle Financing
935 messages, Last post on Jul 28, 2009 at 1:12 PM
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Replying to: volvomax (Jun 30, 2009 7:43 am) Too many times people will let their credit slide to the dumps because of a dispute. Even if maybe sometime in the future you'll win the case, you'll save $5000, but you'll pay way more than that in higher interest costs over time because of the low score that the $5000 collection created. I'd go for something as new as possible as cheap as possible, until you get your score to over 700. Then go all out and buy yourself a treat of a car at a low interest rate you deserve. What car are you looking at by the way? |
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Replying to: dtownfb (Jun 30, 2009 6:11 am) Better advice is to start with the card(s) charging the highest interest rate. |
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Thanks all, paying off the cards will be easy but my only concern with doing that is that a lot of people are having their cards cancelled once they're paid off, especially if they have "fair" or "poor" credit, so I was concerned with having them closed out. I know my cc from the credit union won't cancel me, but what about discover, cap 1, and hsbc? I don't need the cards, but I like having them and would hate for them to be cancelled. That was the only reason I was keeping a balance on them, but I do pay them off every couple of months and just use them for gas, groceries, eating out, cable bill, power bill, phone bill, etc, so that represents most of the balance on them. I rent right now, $1500/mo. I'll try paying them off and see if my score jumps. I also have a current student loan with $7800 balance. |
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Replying to: grandtotal (Jun 30, 2009 10:19 am) Can't you tell I listen to Dave Ramsey. 
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Replying to: dtownfb (Jun 30, 2009 7:43 pm) If someone can change their lifestyle and spending habits that have caused tens of thousands of dollars in problems... then, paying an extra few hundred in interest over the next couple of years will be a minor problem.. I sometimes wonder why I don't have more money, when I think of the dozens of decisions I make every day, just to save a dollar, or a quarter, or even a nickel! Then, the credit card bill comes in...  I had a lot more control over things, when I was single..
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Replying to: lyndacarter (Jun 30, 2009 7:37 pm) Then why keep them. I've had one credit card for over 40 years and I never needed another. Last time I checked my credit score was 791. Try Googling "Dave Ramsey". Guy has a pretty good plan to get out of debt. EDIT: I see someone already beat me to that one. BTW, if you do get rid of a few cards, keep the oldest one. That will have the best impact on credit. Also lyndacarter I just have to say, I loved you in 'Wonder Woman'. 
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Replying to: kyfdx (Jul 01, 2009 3:25 am) i think the OP should be fine if she cleans up those collections. |
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Replying to: lyndacarter (Jun 30, 2009 7:37 pm) but as others have suggested, you have to address those collections. That is keeping your credit score down and causing you not to qualify for the lower interest rate. i would make this a priority. Like oldfarmer said, why keep them if you don't need them. Keep your oldest or maybe the one with the lowest interest rate or the one that actually treats you like a human (most likely your credit union). |
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Replying to: oldfarmer50 (Jul 01, 2009 3:37 am) LOL Too funny oldfarmer. |
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Replying to: grandtotal (Jun 30, 2009 10:19 am) Pay the highest rate off first. It's costing you the most. I would not use capitol one for ANY type of loan, they are among the worst. Let's see a few years back (and some things have changed) I bought a 5 year old car with oveer 30,000 in CC debt, but hadn't had a late payment forever and have / had no collections, etc and score was arounf 770. 4.7% from essentially my "credit union" i.e.USAA's bank. Took anoter loan out six months later, 4.5% same bank. Check w/ your credit union. The CC banks, they can't close EVERY "fragile account" then they'd have no income. Chase did close one on my wife - but we hadn't used it in 4 or 5 years. We had no reason to, I had then sucked into a zero percent until it 's paid off transfer on one of my accounts - and they keep sending me "offers" no thanks that will negate the 0% benefit! 
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