Im at a crossroads!What should I do now??? Pls HELP!!!!

[trugem]

Let me start by saying without the advice and help from everybody on here I wouldnt be where I am!!! Thank you so much!!!

I need advice pls... for the last 4 years Ive worked diligently on building my credit. started out with secure cards etc. At the present time I have a BOA visa signiture with a 10000 cl with a 0 balance and a chase freedom with a 3000 cl with a 0 balance. I use the cards for gas groceries and pay them off the next day. the pay off for my auto loan is 6900 at 261 per month at 6.7% and 27 payments left. I have equity in the bc I put 10000 down & carefully chose an acura bc of its resell value. Im trying to save money for a house downpayment while working towards the best credit score possible. I started out at 510 and now at 730. no baddies or lates at all. Im hesitant on doubling up on payments bc I realize the length of accounts are important. Im even considering paying off the car and selling it for kbb value putting 10000 towards a house (while the market is buyer friendly) and making a downpayment for another car since my credit is better than when I bought it, Id get a better rate.. The car is worth 17500 So what should be my next move?

I work hard and make sure I live within my means, Granted I see other women my age (40 in june) with there 300 handbags etc.. but Im 80% debt free. not many can say that. Id rather do without than to settle or live in debt

[trugem]

should I get another card or open another account?

[guiness56]

Don't let both of your cards report a 0 balance.  FICO likes to see some usage.  Try letting one report a 0 balance and the other at 9% or below.  If it doesn't help you, try a different % the next month.  Utilization has no memory and is scored based on what is reported the day the score is pulled.

I would also continue with the auto you have.  The installment loan is helping with credit mix, only 10% but it does help.  Keep making ontime payments.

When your scores get to be in the higher ranges, score bumps are fewer and farther between.

[Quips]

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@trugem wrote:

Let me start by saying without the advice and help from everybody on here I wouldnt be where I am!!! Thank you so much!!!

I need advice pls... for the last 4 years Ive worked diligently on building my credit. started out with secure cards etc. At the present time I have a BOA visa signiture with a 10000 cl with a 0 balance and a chase freedom with a 3000 cl with a 0 balance. I use the cards for gas groceries and pay them off the next day. the pay off for my auto loan is 6900 at 261 per month at 6.7% and 27 payments left. I have equity in the bc I put 10000 down & carefully chose an acura bc of its resell value. Im trying to save money for a house downpayment while working towards the best credit score possible. I started out at 510 and now at 730. no baddies or lates at all. Im hesitant on doubling up on payments bc I realize the length of accounts are important. Im even considering paying off the car and selling it for kbb value putting 10000 towards a house (while the market is buyer friendly) and making a downpayment for another car since my credit is better than when I bought it, Id get a better rate.. The car is worth 17500 So what should be my next move?

I work hard and make sure I live within my means, Granted I see other women my age (40 in june) with there 300 handbags etc.. but Im 80% debt free. not many can say that. Id rather do without than to settle or live in debt

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Agree that you should let one of your CC's report a balance under 9% - you might get a score bump for that.

As for the car, rather than sell it and buying another, have you looked into Refinancing the car - with your 730 score you should be able to get a lower rate - especially if you belong to a credit union. You could pull some $$$ out for the down payment while still keeping your payments relatively low so your DTI wont be impacted. A $15K car loan for 4 years at 4% will be a payment of $338 (5 yr loan is $276).

[webhopper]

Hi and Welcome to the Forum!

Seems like you are doing very well, congratulations!

I think you could likely be approved for most home loans at this time.  If you have assets such as a 401k that you can use for a house downpayment, you can take a loan against your 401k or other liquid financial assets and use the loaned money for a downpayment. 

Loans taken from liquid financial assets such as vested 401k balances or Certificates of Deposit are great for home loans because the payment does not count against you in the DTI calculation used to qualify you for a house.

While its still a buyers market, you can also request seller assistance towards the down payment and closing costs.  The limits for seller assistance is 6% for FHA mortgages and 3% for conventional mortgages. 

I highly recommend that you check out the MyFico Mortgage Loan forum.

Below is a short list of helpful mortgage loan related links that may help you prepare for the process:

Guide to Common Abbreviations - Barry

Mortgage Acronyms & Abbreviations (what does PITI mean?) - ShanetheMortgageMan

Good Faith Estimates Explained - ShanetheMortgageMan

The Mortgage Pre-Approval Process - ShanetheMortgageMan

Evaluating Conventional vs. FHA (VA & USDA)- ShanetheMortgageMan

Definately feel free to post any questions you have about DTI and Pre-Approval Odds over there!  In addition, you may qualify for downpayment assistance as well as other programs to help you get into a new home!

I don't think you should sell the Acura and get a new car. I like the idea of refinancing the Acura to a better rate.  DCU (Digital Credit Union) is open to membership by anyone, and they have some very competitive rates going on.  You can also look for a local credit union or join a CU such as PenFed.

If you have military affiliation, definately check out Navy Federal CU and USAA. 

Best of Luck to you and please post back if you have more questions after absorbing the info that's already been posted!

[trugem]

Thanks guys!!!! Im checking into CUs and in the process of switching. I have a local cu SRP or Nevy Fed. now to decide... also, what is the advantages of refinancing the car?? why would I want to refinance a loan that I could pay off early? Thank you in advance.

[guiness56]

If you refinanced you get get a lower interest rate and lower payments.

[webhopper]

If you are trying to save money for a house, you can refi with NFCU for a great rate, while still saving your money for the downpayment on the house.

You can go with a 24 or 36 month loan...