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20's - How should I proceed?

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Revelate
Moderator Emeritus

Re: 20's - How should I proceed?


@Anonymous wrote:

i can see both points of view.........i am trying to think abstractly about the future (e.g. car, home, fun things) so i want to squeeze as much as possible. i haven't had any loans of any type. i have a few authorized user cards from way back, when my parents gave me them in case of emergencies and gas cards. but for my own accounts i only have 5 cc (well now 6, i fell off the garden club already: my alumni association has a card i wanted!)

 

i have to think about the CD, since 2500 is a large chunk of change for me to tie up for 5 years........

 

it's awesome to learn about all sorts of ways to get money, spend it, and use it to your advantage. really crazy stuff out there...........

 

i don't mean to go off on a tangent, i just read on these forums that the visa signature (chase sapphire) and worldpoints mc (bofa) don't report credit limits? is this true? i went through my CRs and the chase didn't report a credit limit (it's old though, from april-2011)? i dont know for the platinum plus WP MC from BofA yet since the CRs are form april-2011


I wouldn't do 5 years necessarily in your case: pick an end date when you think life may change: near graduation, perhaps around thesis time, or if you have a possible wedding... any big possible turning points, and work backwards from there for the term you want.  5 years was my first sniff test, and I'll probably do it for 2-3 instead on further thought.  In my case, I might be able to get a house next year, I know I can get one in 2014:, having that CD come to term around there would likely be a good time for me in terms of needing cash, and having the big honking installment tradeline of a mortgage to replace it lessens the postive FICO impact of it.  6 months is the shortest I'd consider for any real FICO benefit, 12 or 24 is better.

 

Also, you don't tie up the cash: it's 100% LTV, you put in $2500, the bank loans you your $2500 right back in exchange for a monthly payment.  That reduces your monthly free cash flow for whatever the amount is, but not your cash on hand.  Based on your posts, housing probably guarunteed through the university, no auto payment, and a decent research or lecture income, I think you can hit the montly slalom gates if you so desire.

 

That all said, you might just be able to clear a personal unsecured loan in your case anyway, but the interest will wind up costing you quite a bit more.  Premise of this was installment tradeline on the cheap.




        
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