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Quick question: Does Walmart still allow Discover Card Signature Debit Cards? Thanks for any answer or 2. Another question on my mind: Got a used car loan in Dec about 1 week out of BK7. We borrowed 15k at 18% interest. I knew I would pay it off early but thought it would be 12-15 months in. However I have some extra cash and can pay it off now. However I have been debating to pay it off or let the auto loan age at least 6 months on my report so my next car loan will hopefully go easier.. |
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Yep, but... you might wanna make sure and wait for someone else here to confirm my answer as I am not very confident. Better yet, why don't you e-mail the Discover Card guys because they can assist you better...
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I'm no expert by a long shot and can't answer your question about aging the account, but that is a.
Lot. Of interest. If it were me, I'd pay it off and not worry about the report. It's not like it would be a negative, after all... |
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DON'T PAY INTEREST WHEN YOU CAN PAY OFF THE LOAN.
(unless that APR is 0.00%).. |
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I may need to buy another car in 6-8 months and while I could use the 15k as part of the down payment I really dont want two car payments. Just wondering what is going to set me up for the best loan next time around...
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ROLLING IN THE CURRENT LOAN INTO A NEW CAR LOAN RARELY.
(if ever). IS A GOOD IDEA. Like you lose all the way around. (unless you gain by having a. MUCH LOWER APR. ). ...but they are still going to make more money than you think they are on the car and the one you trade in and add both loand together. This post has been edited by. GEORGE. : 11 January 2010 - 03:17 PM.. |
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If I'm reading correctly, OP is trying to decide between paying (with Discover card) off the existing car note, then getting a new, separate loan or keeping the existing loan as-is and putting a substantial down payment on the new car. Is that right, OP? I would still pay off the one with the high interest...
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If you are trying to rebuild, why not use a small portion of the money you have and refi that loan with a down payment. I refi'd my husband's loan shortly after our discharge into a lower rate loan. Dropped 7% off the rate..
I am in auto finance and can tell you that the short length of the TL will not aid you in your next loan if you pay it off now. Lenders, especially these days as stingy as they are, want to see history. The FICO scoring system may not make sense, but we all have to live within it. Point is that if you are looking for savings alone, pay it off, but since you seem to be looking for savings in your next loan, let it age... |
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Yep thats pretty much what I am wondering. I need to replace another car I have at some point in the next 6-8 months..
Option 1 - Pay off car #1 with 15k and put less money down on car #2.. Option 2 - Keep the payments on car #1, then put more down for car #2... |
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Use option 3 - refi that balance at a better rate and use your cash as leverage as said above. If you don't have CU, get one. Then talk to the CU about refi on the car. Offer to pay down as much as necessary or other options like partially secured loans..
Plus, establishing the CU link gives you an in for the next car financing... |
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I would just pay it off. At that interest rate, you can find other ways to improve your scores!..
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I have a good history with my credit union, paid off two cars over 10 years with them, but they told me I have to wait 12 months after my BK7 discharge before they can do anything loan wise with me...
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I would do one of the following:.
1. Try refi, prehaps a CU will give good rate if you pay 1\2 so you only need a 50% LTV loan.. 2. Pay your balance due less 11 times your monthly payment. This would reduce interest and cause loan to be paid off in the 13th month(11 months you left + jan payment + years interest which would be about one payment). 3. Check with credit union if they would give you an car equity loan on car if #1 won't work after you PIF the loan. Then PIF loan and pull maybe 5-10k or so out and use as down on 2nd car while reducing rate.. |
