Next step for me in my credit journey comes in November. My oldest inquiries should age off and my 730ish score will hopefully climb over 740.
At that time I have three moves to make:
1. Car purchase
2. Open PLOC and move my banking to BECU
3. App Discover IT and/or CITI double cash
Then back to the garden for a long time.
What I have been turning over in my head is whether I need/want the car loan. I have been saving for that purchase and should only be about six months short of having the full cost saved up.
Option 1, get a car loan with flexible payment terms and pay it aggressively until only a small balance remains after six months, let that run as an installment loan just to have one.
Option 2, just get the PLOC and use that to finance the car. Higher interest rate but the most flexible repayment options and since I can pay it within six months it should not be too much interest
Option 3, use the PLOC then transfer my savings from Canada to repay it immediately. The downside is I lose 2-3% on the currency exchange so this isn't clearly better than financing
Question for you guys is going from no installment loan today, how much will it help me in future to have that?
