- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Car Loan / Credit Score Question
Posted on 4/27/11 at 7:13 am
Posted on 4/27/11 at 7:13 am
I'm about to buy a used car for $8k, I can pay for it in cash, but I really need to get some credit because I don't have any history other than a mortgage that I just started a couple months ago. So my question: let's say I put $4k down and take out a $4k six month loan, but pay the entire remaining $4k on the first payment. Will this reflect just as good on my credit score as it would have had a made regular payments for the 6 months, or if I paid them regularly on a 12 month loan? I'm just not sure if they want to see you pay off money you borrow or they want to see you made regular payments, which is it that brings up your score?
Thanks in advance!
Thanks in advance!
4
Posted on 4/27/11 at 7:19 am to Rush2112
quote:
I'm about to buy a used car for $8k
quote:
I can pay for it in cash
quote:
but I really need to get some credit because I don't have any history other than a mortgage that I just started a couple months ago
You have a house and now you will have a paid for vehicle. What else do you need credit for?
Posted on 4/27/11 at 8:00 am to Rush2112
Pay cash for the car. Paying this off in 1 month will not get you what you are looking for.
Go and get a gas card, use this to fill up each week and pay it off at the end of every month..this will help you the most
Go and get a gas card, use this to fill up each week and pay it off at the end of every month..this will help you the most
Posted on 4/27/11 at 9:01 am to Rush2112
Depending on the car and its value and depreciation since you are only trying to get a loan of 4k many banks will refuse that loan depending on the car. There are a lot of terms that have to be satisfied on a used auto loan. The bank may want you to take out a loan of 6k. Or they will hit you with a pretty heavy rate. The bank has to make money off the loan. There isnt a whole lot of room for profit on a 4k car loan and a lot of risk. So dont expect great terms if any.
Posted on 4/27/11 at 9:18 am to Rush2112
Rush, when my son graduated last May, our banker (and friend) recommended that he pay his car loan for 12 consecutive months and then pay it off.
FICO is not a complete picture of a person, but unfortunately employers and insurers are using it in evaluation.
FICO is not a complete picture of a person, but unfortunately employers and insurers are using it in evaluation.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News