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New Member
Hammerhead
Posts: 2
Registered: ‎07-06-2007

Six Month Plan Advice Please

I am wanting to purchase a used car at the beginning of 2008. I figured by waiting until 2008 the prices on the 2005 and 2006 models would go down.

I'm not sure of my actual FICO score at the moment but on my credit card account it shows a score of 677.

I have $8,000. in credit card debt right now but I can at least pay $4,000. of that off my the first of the year.

Would it be better to just keep paying off this debt over the next 6 months and then at the first of the year apply for an auto loan or get a personal loan now and pay off all credit cards and pay the loan down to $4,000. by the first of the year then apply for an auto loan?

Other than $7,000. in Student Loans I have no other debt.

Thanks
Established Contributor
so_confused
Posts: 630
Registered: ‎06-20-2007

Re: Six Month Plan Advice Please

IMO... I would just keep paying my CC down and not worry about the auto loan.  You may want to look at  Roadloans.com .  They just gave me a auto loan @ 6.49% with similar scores, easy to deal with make life alot easier when go to a dealer and they don't no you have financing. You can focus on the price. Good luck!
9/18/08 TU=707 EQ=706 EX=702
Moderator Emeritus
fused
Posts: 16,253
Registered: ‎03-12-2007

Re: Six Month Plan Advice Please



Hammerhead wrote:
I am wanting to purchase a used car at the beginning of 2008. I figured by waiting until 2008 the prices on the 2005 and 2006 models would go down.

I'm not sure of my actual FICO score at the moment but on my credit card account it shows a score of 677.

I have $8,000. in credit card debt right now but I can at least pay $4,000. of that off my the first of the year.

Would it be better to just keep paying off this debt over the next 6 months and then at the first of the year apply for an auto loan or get a personal loan now and pay off all credit cards and pay the loan down to $4,000. by the first of the year then apply for an auto loan?

Other than $7,000. in Student Loans I have no other debt.

Thanks

I would read Tuscani's credit scoring 101 thread.
 
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Valued Contributor
SmartCookie
Posts: 2,010
Registered: ‎07-01-2007

Re: Six Month Plan Advice Please

If you can get a decent personal loan now, you'd save CC interest... get your utilization in order, and probably bring your score up faster than without due to a better mix of credit.  That way in  January you'd also have an easier time getting a car loan with a good interest rate for the car.  I hear loans for used cars are not as easy as for new... go figure!
 
 
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