Contributor
QueenofReinvention
Posts: 104
Registered: ‎12-01-2012
Re: Advice Please!
[ Edited ]

JoeyD, if you got the car for 16k and put down 2k, then that means you financed 14k correct? I just want to ensure I have the numbers correct. I don't know exactly when you purchased your car (date), nor do I know what your other credit cards look like, but first, if I were getting 10-13k in a bonus, I would make sure my credit card utilization was my first priority, as well as saving a little bit. So, for example, if I received 12k bonus and had recently gotten the car and owed 14k, but had 6k in credit card debt, I would pay the credit card debt off first; save about 3k, and then that remaining 3k, I would pay towards prinicipal on my car loan, and look to refinance as soon as feasibly possible.

 

Someone else can confirm this, but it was my understanding that auto loans are not a high FICO mix, and that credit card utlization is, and that's why it's important to keep that < 9% of utilization. Now, if you have no credit card debt, then, using my 12k bonus scenario amount from above, I would save 5-6k, and the remainder I would pay towards the principal on the auto loan. Hope all of this makes sense!

 

Good luck, and it's always nice to get a bonus or unexpected windfall to help with paying of debts!