This month, I would like to purchase a used Audi A7 with a $50k purchase price and an engagement ring for $18k and have a few questions. My current debt consists of $24k on my soon-to-be fiance's Mercedes E350 and a $330k mortgage (with over $250k in equity) - credit cards get paid in full each month. Our combined income (we have merged finances) is approx. $225k.
I had one item marked as in collections (for years that I finally noticed last month) that was a mistake and it was "reported as removed" from my report on May 2, 2014, but it showed up when I bought a report from myfico.com today. Question: How long does it take for my credit score/report to update? As of today, my EX score was 699 - I assume mostly due to the collections because I have otherwise never missed or been late on any payment. Her credit score is 655 (many college incidents still on reports - working to rebuild).
I have a total of $60k in cash (plus a relatively small trouble/reserve fund). Questions: Should I pay off the Mercedes and take a larger loan on the A7? Where should I start my search for interest rates?
I am also purchasing an engagement ring this month for a total purchase price of $18k. While I could pay it off, it would deplete my available cash below a comfortable level. I was able to secure 18mos interest free financing. Question: Should I purchase the car first or the engagement ring first?
All advice is greatly appreciated.
