New Member
Posts: 3
Registered: ‎07-01-2013

Smart Move?

So credit background.


Had a credit card since Jan 2012 (Navy Federal, was 18)

              Paid no interest on it yet.

Opened a Victoria's Secret Card back in later 2012

              Paid no interest on it yet.

Opened USAA credit card back in March 2013

              Paid no interest on it yet.

Appplied for a Navy Federal Auto Loan in May 2013 ($6500)


Bought my truck ($4500 down, $6500 Loan with GAP included)


Bad news. Totaled my truck about 3 weeks after I got it.

Insurance is giving $12000 (I paid $9995, total cost after everything was $10500)


How is this going to affect my credit? Will it boost it, drop or not affect? (It was 751)

I had not yet been required to make my first payment, though I had.


Also, would it be smarter to ask for a bigger loan the second time around so that in several years when I want a bigger and newer truck getting finance will be easier?


I currently make $1600 a month.

I put $200 away for retirment.

I put $200 into rainy day fund (it's at over $6500)

Auto / Renter's Insurnace is $215

Car payment budget it $200

That leaves me $400 for incedentials. 


My rent and food are covered by the military. 





If you see me running. it's already too late.
Community Leader
Valued Contributor
Posts: 1,057
Registered: ‎09-29-2009

Re: Smart Move?

Is a portion of the insurance payment directed to NFCU to pay off the current loan? If not when you receive the settlement just pay off the loan in full and apply for another loan with them. NFCU is very generous when you have a good relationship with them. As far as your credit score goes I would expect very little impact from these transactions. Your credit accounts are too new to have any effect on Average Age of Accounts. And the paid auto loan and new auto loan will just add depth to your credit report rather than negatively impacting it. Your insurance rates on the other hand..... If you were deemed at fault in the accident that totaled the truck then standby for a punishing rate on your next vehicle. You may want to factor that in to the what can I afford next.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

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