divinemadness Posted September 19, 2008 Report Share Posted September 19, 2008 Hey yall,as you all know my dh bought a brand new corvette a few months ago.well today we decided to pay if off, we were making monthly payments and just decided we have too many bills over our heads and to pay off some stuff. the credit cards we are keeping open of course, with zero balances, but what can we expect to see having an auto loan paid off early on a CR?? what will the score jump? anyone know? the loan was opened in may 2008. paid off today, sept 19, 2008. and once it shows paid and closed on the reports, what kind of CC's do u think we should go after --- well would paying a huge amount like that off in a few months looks really good to other companies?? like amex and such?? we havent been able to get an amex yet... thanks yall Link to comment Share on other sites More sharing options...
willingtocope Posted September 19, 2008 Report Share Posted September 19, 2008 Okay, now wait a minute. You have the money to pay off a vette in 6 months, and you're looking to get credit cards? Why? Stick with those cards you have (for emergencies) and start paying cash for new toys. Link to comment Share on other sites More sharing options...
divinemadness Posted September 20, 2008 Author Report Share Posted September 20, 2008 Okay, now wait a minute. You have the money to pay off a vette in 6 months, and you're looking to get credit cards? Why? Stick with those cards you have (for emergencies) and start paying cash for new toys.ya but we want to build up our credit really good...and we pif each month so its looking great. and i want to buy a rental property soon.. Link to comment Share on other sites More sharing options...
cap1kid Posted September 25, 2008 Report Share Posted September 25, 2008 Why dont you join a credit union and take $5000 and open a savings account- then get a secured credit card- It benefits you three ways:1. you have a very high line of credit2. you have a way to pay it off- if things go bad3. you earn interestand that way at the end of your spending spree you have 5 grand left over.I recommend Navy Federal if you have prior Military- or parent with military- have them join- then you piggy back a membership,good luck Link to comment Share on other sites More sharing options...
Robert Nashville/Savannah Posted September 25, 2008 Report Share Posted September 25, 2008 ya but we want to build up our credit really good...and we pif each month so its looking great. and i want to buy a rental property soon.."Good" for what...good so that lenders will let you go deeply into debt at a moment's notice? Link to comment Share on other sites More sharing options...
divinemadness Posted September 25, 2008 Author Report Share Posted September 25, 2008 "Good" for what...good so that lenders will let you go deeply into debt at a moment's notice?noooooooooooooooooooo not what i meant Link to comment Share on other sites More sharing options...
divinemadness Posted September 25, 2008 Author Report Share Posted September 25, 2008 Why dont you join a credit union and take $5000 and open a savings account- then get a secured credit card- It benefits you three ways:1. you have a very high line of credit2. you have a way to pay it off- if things go bad3. you earn interestand that way at the end of your spending spree you have 5 grand left over.I recommend Navy Federal if you have prior Military- or parent with military- have them join- then you piggy back a membership,good luckthats a good idea, but we are trying to stay away from secured. maybe we will work on CIL's with existing CCs. we have a few in the land of 4 digits..i will see. thanks! Link to comment Share on other sites More sharing options...
Methuss Posted September 25, 2008 Report Share Posted September 25, 2008 ya but we want to build up our credit really good...and we pif each month so its looking great. and i want to buy a rental property soon..This will actually not help you achieve this goal. As Willing said. Don't open any new cards. Your best course for improving a score is time. So be patient.Paying off the car was a very good idea financially - because you should not carry any debt - but it probably will hurt your FICO score. The FICO model gives points for active installment loans. A paid off installment loan garners no extra points and may actually lower your score.Any underwriter doing their job will DENY a loan on an investment property to a person with a boat load of unused credit cards. Because 99% of the time those people rack up the cards right after the property purchase fixing things.By the way, you do know that you need a 30%+ downpayment to buy a rental (investment) property right? It used to be 20% but in today's lending environment the underwriting standards for investment property has been increased. Link to comment Share on other sites More sharing options...
divinemadness Posted October 2, 2008 Author Report Share Posted October 2, 2008 This will actually not help you achieve this goal. As Willing said. Don't open any new cards. Your best course for improving a score is time. So be patient.Paying off the car was a very good idea financially - because you should not carry any debt - but it probably will hurt your FICO score. The FICO model gives points for active installment loans. A paid off installment loan garners no extra points and may actually lower your score.Any underwriter doing their job will DENY a loan on an investment property to a person with a boat load of unused credit cards. Because 99% of the time those people rack up the cards right after the property purchase fixing things.By the way, you do know that you need a 30%+ downpayment to buy a rental (investment) property right? It used to be 20% but in today's lending environment the underwriting standards for investment property has been increased.thanks good info!!! will heed your advice here Link to comment Share on other sites More sharing options...
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