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no.
You're doing just fine
No new apps until home purchase
My previous post is just a joke. There is no right or wrong answer when it comes to these things. You're doing it "right" if you're making it work for you. I think you already know the answer to your own question, you have what appears to me like sufficient tradelines, you've started building history, etc. Don't know what else you expect people to chime in on.
Where are you located? If you live in an area with a low cost of living, this may be feasible, but if you live in an area with a higher cost of living, you're going to need more income.
With an income of $40,000, you take home... $2,300 per month? General consensus is that you can afford a housing payment of 1/3 - 1/4 of your monthly take-home. That's $600-$800 per month which you could afford to spend of housing. A 30 year loan at 4.5% APR, you could reasonably afford to purchase a home that is $120,000-$200,000 with after downpayment. If you're planning to purchase a new Lexus, a $40,000 loan @ 1.99% APR over 5 years would cost you $700 per month, probably more than you should be spending on housing at your income...
Don't want to burst your bubble, but if you're taking home $2,300 per month, paying $1500 per month toward your home and your car, another $300 per month for insurance (minimum, I don't know how much house insurance runs these days), you'll be left with $500 per month to pay for gas, groceries, toiletries, property tax, xmas/birthday presents, car maintenance etc. etc. I don't want to burst your bubble. It's nice to have dreams and goals, but I'd hold off until you're more financially stable before making these large purchases.
FWIW, I'm around your age, around your income level. I'm currently living with family while setting aside ~$10,000 per year for a downpayment on a house (this number will increase as my income does. By the time I'm 30, I hope to be making $80,000 or more per year with ~$80,000-$100,000 for a downpayment on a home. I currently ride a motorcycle everywhere (45+ mpg!), and I have a car with no intention of purchasing a new car anytime soon. I am also studying the stock market and am counting on the economy to help with my downpayment and save $5500 per year toward retirement.
Like I said, I don't want to be a downer. Purchasing a home and a Lexus at your income may very well be doable, but you will have no margin for the "oh sh*ts" that may come your way.
Whats the balances on each card? What's your utl look like? Do you have any baddies reporting?
A house is totally doable with OP's income, it's the Lexus I would hold off on. Lol then again I make around the same and aspire to an Escalade
@Anonymous wrote:Where are you located? If you live in an area with a low cost of living, this may be feasible, but if you live in an area with a higher cost of living, you're going to need more income.
With an income of $40,000, you take home... $2,300 per month? General consensus is that you can afford a housing payment of 1/3 - 1/4 of your monthly take-home. That's $600-$800 per month which you could afford to spend of housing. A 30 year loan at 4.5% APR, you could reasonably afford to purchase a home that is $12@0,000-$200,000 with after downpayment. If you're planning to purchase a new Lexus, a $40,000 loan @ 1.99% APR over 5 years would cost you $700 per month, probably more than you should be spending on housing at your income...
Don't want to burst your bubble, but if you're taking home $2,300 per month, paying $1500 per month toward your home and your car, another $300 per month for insurance (minimum, I don't know how much house insurance runs these days), you'll be left with $500 per month to pay for gas, groceries, toiletries, property tax, xmas/birthday presents, car maintenance etc. etc. I don't want to burst your bubble. It's nice to have dreams and goals, but I'd hold off until you're more financially stable before making these large purchases.
FWIW, I'm around your age, around your income level. I'm currently living with family while setting aside ~$10,000 per year for a downpayment on a house (this number will increase as my income does. By the time I'm 30, I hope to be making $80,000 or more per year with ~$80,000-$100,000 for a downpayment on a home. I currently ride a motorcycle everywhere (45+ mpg!), and I have a car with no intention of purchasing a new car anytime soon. I am also studying the stock market and am counting on the economy to help with my downpayment and save $5500 per year toward retirement.
Like I said, I don't want to be a downer. Purchasing a home and a Lexus at your income may very well be doable, but you will have no margin for the "oh sh*ts" that may come your way.
Well, by that time I'm not the only one paying for my home. Going to share with my girlfriend. But thanks for that explanation I'll take note of it before doing my goal. I really appreciate your advice.