@Walt_K wrote:
@Revelate wrote:Oh further note: make sure you get a simple interest loan on the car.
Here's an interesting tidbit I found since I'm throwing my available free cash at my auto loan (at similar income to yours), don't request that extra payments go directly to principal, see if they can go against your next payment (quite often they do by default, check the loan agreement) to continually push the next due date further into the future. Just do that continually over the course of the loan till your payment date is basically the last one (somewhere 3ish years out from what you wrote) and let it idle for positive tradeline history with the interest accruing on some laughably small principal.
Stupid FICO tricks
Are you sure about this? When you advance the payment, aren't you paying just as if you were making the next payment, and therefore paying the same amount of interest. If you don't pay down the principal, then the interest is still calculated against that amount. I thought that was why some lenders set it up to where your payment would advance by default, so they would get more in interest. I could be wrong.
Absolutely positive. Have 3 installment loans right now which work in exactly this manner. Posting a lazy snippet from a Wells Fargo Dealer Services loan in my case... if you work the math out at a consistent payment of 1K each time, you can see that a little bit of interest (that accrued over the period between payments) was eaten, but the rest went to principal and it also pushed my payment out. I wasn't too worried about the interest getting paid now as that was the price of pushing my loan due date out, and I was making them in close enough succession that it wasn't a huge penalty (if $10+ / day in interest is ever trivial... but you know what I mean)
Posting Date Effective Date Description Amount Principal Balance Next Due Date
| 2/15/2012 | 2/15/2012 | WEB DIRECTDEBIT PAYMENT | $1,000.00 | $15,933.94 | 10/10/2012 |
| 2/6/2012 | 2/6/2012 | WEB DIRECTDEBIT PAYMENT | $1,000.00 | $16,854.98 | 8/10/2012 |
| 2/1/2012 | 2/1/2012 | WEB DIRECTDEBIT PAYMENT | $1,000.00 | $17,808.63 | 6/10/2012 |
| 1/31/2012 | 1/30/2012 | REGULAR PAYMENT - OTHER | $1,000.00 | $18,789.07 | 4/10/2012 |
