Car loans Question!
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cjacob316
New member
it won't hurt you, but a longer history of credit and payments will help more, if you care about that
BrianSD_42
New member
Best advice I can give anyone who doesn't know much about finance and loans:
Join your local credit union
Join your local credit union
Lineman
New member
You get a loan for a vehicle but don't know the pro's and cons of a loan?
My advise to you is after this one is paid don't ever finance a vehicle again. Pay with cash.
You don't need credit or that score when you pay cash.
All a credit score means is you buy stuff you can't afford and pay it back.
My advise to you is after this one is paid don't ever finance a vehicle again. Pay with cash.
You don't need credit or that score when you pay cash.
All a credit score means is you buy stuff you can't afford and pay it back.
thebrandon
New member
Paying cash isn't always an option for people. Even if it is for a temporary clunker. It is very important to understand how your credit works though and the things that impact it if you find yourself in a situation where you need to use it.
85straight
New member
So when you want to buy a home you have 200k sitting around in cash,not likely. Credit matters in certain situations, for example my score was pretty bad, but i had enough cash saved to put down 40%. I got approved for the loan but interest and total sale price was far below (and above in interest) what i had wanted. So now i have all this cash for a home bit cant buy one yet because of my credit \end rant
Op if you have the ability to pay the truck off asap do it
KidVermicious
New member
Screw your credit. Keep making good choices like paying your loans off early and you won't care about your credit score because you won't need it.
bofa
New member
Sigh... some of the mom-n-pop advice in this tread is terrible.
No, paying the loan off early will not hurt your credit. It won't even hurt your "history of making payments on time" because positive accounts continue reporting for 10 years.
Paying cash for everything is not a good idea. You need to establish credit before you need it, even if it's a "just in case" measure. And if you insist on paying cash, it wouldn't be a bad idea to finance it and then pay it off in short order. In fact ,if you can finance at a rate lower than you could earn in a bank account you could actually make money by financing.
No, paying the loan off early will not hurt your credit. It won't even hurt your "history of making payments on time" because positive accounts continue reporting for 10 years.
Paying cash for everything is not a good idea. You need to establish credit before you need it, even if it's a "just in case" measure. And if you insist on paying cash, it wouldn't be a bad idea to finance it and then pay it off in short order. In fact ,if you can finance at a rate lower than you could earn in a bank account you could actually make money by financing.
nevada
Senior Member
that's true, if you paid it off too early(a couple months), and had no prior long term credit history.
but, anything over a year you're good.
1engineer
Moderator
I know right? Wait until the cash only guys go try to change insurance companies and find the cost of insurance is directly tied to their credit score. No credit score=higher premiums lol.
bofa
New member
They don't need insurance. They dispense $100 bills on the spot.
Nervo19
Member
We're talking about a fifteen year old vehicle. Is it even financed through a bank? I would think the only way to finance a vehicle that old would be from a buy here/pay here car lot. If that's the case they are likely not reporting your loan to credit agencies. If you default they just take back the truck and sell it again. Read the fine print on your loan documents. They might have a nominal "penalty" for paying the truck off early, still cheaper than all the interest you signed up for. It would be a great idea to pay it off ASAP. I have a 2000 too and although it's in great shape I feel as if I'm on borrowed time. I would hate to think I still owed money on it. I'd easily be able to replace the motor or trans if needed. Good luck. You're smart to pay down the debt.
Lineman
New member
This is what America wants you to believe. The Banks want you to believe. You save until you can buy your temporary clunker then.
Lineman
New member
Wrong again. I've bought a home with a low credit score. It was at 500 due to I had used no credit for years. I had 50% down though on a $450K house. All that happens is your loan goes through an Underwriter. That shows you have no debt and pay cash/debit card/or check for everything... And all Banks have an Underwriter.
Not 200K sitting around in cash to buy a home. Its called wire transfer/cashiers check.
85straight - request underwriting if you have saved 40% for a home loan. There is a difference though between having a low credit score because you don't use it and having a low credit score because you've missed payments, etc. Which one are you?
Not 200K sitting around in cash to buy a home. Its called wire transfer/cashiers check.
85straight - request underwriting if you have saved 40% for a home loan. There is a difference though between having a low credit score because you don't use it and having a low credit score because you've missed payments, etc. Which one are you?
Lineman
New member
Not with my company. Insurance companies have underwriters as well. There are things for people who like to use no credit.
I would rather pay just a barely higher rate of insurance "if my company didn't do underwriting". Then have a great credit score due to financing cars, credit cards, etc. Think of all the interest you pay monthly. All the tiny increase in insurance rate would never come close to your interest being paid monthly.
I would rather pay just a barely higher rate of insurance "if my company didn't do underwriting". Then have a great credit score due to financing cars, credit cards, etc. Think of all the interest you pay monthly. All the tiny increase in insurance rate would never come close to your interest being paid monthly.
KidVermicious
New member
Speaking of mom-n-pop advice...
Paying cash for everything is the best idea, full stop. The idea that we should all run credit lines in order to make money and be wealthy and happy (like the above post) is a fiction promoted by an entire industry dedicated to putting you in debt so they can make money off you, and it's the reason there's such a huge gap between the haves and the have-nots in the western world. As long as people keep buying into the twin fictions that things make you happy and you have to have debt to have things, that gap will continue to grow.
That's only relevant if I'm making the mistake of carrying full coverage insurance in the first place. Insurance is a scam, by definition, and another great example of a parasitic industry that has managed to convince the US public that we need them.
KidVermicious
New member
Exactly. "Look how smart I am! I just wasted $10,000 in finance and interest charges buying things I don't need so I can save $50 on car insurance I don't need!"
Sillyness.
