11-25-2017, 01:55 PM | #15 | |
Drives: 2SS/RS Join Date: Sep 2008
Location: Western North Carolina
Posts: 7,225
|
Quote:
When I first started building my credit to buy the Camaro, my score ranged between 820 and up and kept it that way for over 3 years. When I went to buy the car and get a loan for $15k, no one would touch me even though my score was excellent because of my history. |
|
11-30-2017, 02:16 PM | #16 |
Drives: 2011 1LT Join Date: Mar 2012
Location: Crestline, CA
Posts: 3,029
|
A while ago, my buddy told me about an awesome consolidation loan that he got.
He had six credit cards, each with an interest rate around 20%. He got all of the balances rolled into one balance, from the consolidation lender, with a rate of only 30%. Yep, he thought it was a great deal, because his six credit cards at 20% meant 120% to him... so 30% seemed like a great deal. My forehead still hurts from slapping it in frustration. Please do not be like my friend. |
11-30-2017, 02:26 PM | #17 | |
Drives: 2015 SW 1SS/RS 1LE Join Date: Mar 2015
Location: Brighton, CO
Posts: 2,736
|
Quote:
__________________
“The Eagles and the Captain and Tennille ruled the airwaves, and we were the answer to it.” - Joey Ramone
|
|
11-30-2017, 05:51 PM | #18 | |
Drives: 2012 45th Anniversary Edition Join Date: Aug 2012
Location: San Diego, CA
Posts: 1,618
|
Quote:
|
|
12-13-2017, 05:57 PM | #19 |
|
So as an update.. and a final one. My plan worked. Just received funds to pay off all my debt with an 8.9 percent interest rate on a personal loan for 3 years, and that monthly payment is 600 dollars less than what I was paying just in minimum credit card payments to stay afloat and not gain any ground. So for those who say there isn’t a way... I’m sorry but I have proof that there is. In less than 2 months went from drowning in credit card debt with no end in sight and with a low 600 credit score, to a 750-760 credit score no credit card debt on my credit and one monthly payment that is much lower than what I was paying to begin with.
__________________
*Performance:
mrt v2.0 exhaust/CAI Intake *Cosmetic: Zl1 factory Reproduction wheels Bmr 1.2/1.4 springs/Oracle plasma drl lights, footwell ambient lighting, 45th Gobo lights *Audio: Memphis pr600 amp/Fosgate 12" t0 sub/******** stealth box |
12-13-2017, 05:59 PM | #20 | |
|
Quote:
__________________
*Performance:
mrt v2.0 exhaust/CAI Intake *Cosmetic: Zl1 factory Reproduction wheels Bmr 1.2/1.4 springs/Oracle plasma drl lights, footwell ambient lighting, 45th Gobo lights *Audio: Memphis pr600 amp/Fosgate 12" t0 sub/******** stealth box |
|
12-14-2017, 06:18 AM | #21 |
Drives: 2017 Mosaic Bk ZL1 M6 Join Date: Jul 2009
Location: South of Raleigh, NC
Posts: 9,522
|
Now close all your credit card accounts except maybe one and cut them up so that in a year you're not back in the same position + your loan payment.
__________________
|
12-14-2017, 09:49 AM | #22 |
Drives: 2014 Black 2SS Join Date: Oct 2015
Location: Atlanta
Posts: 31
|
DO NOT close any of your credit cards. Just keep them open and barely use them.
The credit rating agencies want to see responsible debt use. They do this through a utilization ratio (amount outstanding/ total aggregate credit limit). Having a larger limit and spending the same amount as you would with a smaller limit is more beneficial as it leads to a lower utilization in the eyes of the credit agencies. You seem to have researched alot on how this works in order to fix it and youve done the right thing by terming out the credit card debt into a personal loan with a payment schedule. Unfortunately, ~8% interest is not bad for an unsecured personal loan. I would be surprised if you can materially better that through a refi especially with the current rising interest rate environment. The best thing may just be to prepay more than your monthly payment if you are able. |
12-14-2017, 01:51 PM | #23 |
|
I know not to close them, already have minimum reoccurring payments on them and that’s all they will be used for, Netflix on one, Cable bill on the other, and set to pay off balance each month. As stated before I do know how to manage my money now, and am not concerned about racking up the debt again. 5-10 years ago being young and dumb was a different story and I’m finally catching up after all these years
__________________
*Performance:
mrt v2.0 exhaust/CAI Intake *Cosmetic: Zl1 factory Reproduction wheels Bmr 1.2/1.4 springs/Oracle plasma drl lights, footwell ambient lighting, 45th Gobo lights *Audio: Memphis pr600 amp/Fosgate 12" t0 sub/******** stealth box |
12-14-2017, 03:17 PM | #24 | |
|
Quote:
It’s already set up for 3 year loan, so interest even at 8 percent I’m already happy with considering where it was, but I have every intention to pay it off in 2 years and already have the amount specified to do so, made sure of no prepayment penalties before I even touched the loan
__________________
*Performance:
mrt v2.0 exhaust/CAI Intake *Cosmetic: Zl1 factory Reproduction wheels Bmr 1.2/1.4 springs/Oracle plasma drl lights, footwell ambient lighting, 45th Gobo lights *Audio: Memphis pr600 amp/Fosgate 12" t0 sub/******** stealth box |
|
12-14-2017, 04:15 PM | #25 |
Drives: 2014 Black 2SS Join Date: Oct 2015
Location: Atlanta
Posts: 31
|
Good Deal man you're on the right track. And yeah I just wanted to throw the dont cancel card thing out there for the general audience as a lot of people think closing them will help, but based on the way they analyze it doesn't.
|
12-14-2017, 04:26 PM | #26 |
Started#gottalovethatblue
|
Closing all but 1 will ding your credit shortly, but it will still stay high. However, if you close them all out and pay everything off and get a zero credit score you actually can be in much better financial shape than having a credit score. Credit scores are only worth having if you want debt. Personally I'd argue that there's no good debt.
__________________
|
12-14-2017, 04:27 PM | #27 |
Drives: 2015 SW 1SS/RS 1LE Join Date: Mar 2015
Location: Brighton, CO
Posts: 2,736
|
FICO looks at a lot of things when they determine your score... length of credit(age of credit) - medium impact, total accounts - low impact, payment history - high impact, credit use - high impact...
Your score will help down the road if/when you want to buy a house, if that is in the plans...
__________________
“The Eagles and the Captain and Tennille ruled the airwaves, and we were the answer to it.” - Joey Ramone
|
12-14-2017, 05:25 PM | #28 | |
Drives: 2017 Camaro RS Join Date: Dec 2017
Location: Central Coast
Posts: 77
|
Quote:
|
|
Post Reply
|
|
|