09-30-2012 12:51 PM
Thanks everyone for the advice! I am definitely going to wait on applying for anymore lines of credit, so I'll be gardening with you all! By the way, I have 0%apr on my Capital One and Citi card, but I am still going to try to pay those down as soon as possible! Is there an ideal amount that I should have in savings? Also, what company would you recommend I refinance with? Thanks!
10-01-2012 11:50 AM
In the longer term, it is a good idea to have sufficient savings to cover 6 to 12 months of your total expenses (rent, car, groceries, gas, etc).
For now, just focus on first saving enough to be secure in sudden short-term emergencies. With your income, $500 to $1000 is probably sufficient to get you through a bad month. Once you amass an emergency fund, be disciplined about never touching it unless a real emergency comes up. It's your personal safety net, not a trip to Bermuda fund.
As for the refinance, shop around! There's no one best source for car loans or mortgages...they all offer different rates to different borrowers, so it's ultimately a matter of which lender regards you as less risky than the others. Spend some time getting competing offers and take the best one you can find.
I will say that in general, I have had good luck getting favorable car loan terms from local credit unions, and they are good places to explore when you are shopping. Even if you're not a member of a given CU yet, most will run your credit and quote you terms for the loan. If you choose to accept the offer, you'll just need to make a modest deposit (typically between $10 and $25) to open a savings share account and become a member of that CU before they can execute the loan.
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