topic Re: Setting Your >2026< Personal Finance Strategy in Personal Finance

Setting Your >2026< Personal Finance Strategy

Aim_High — Sun, 07 Dec 2025 19:15:50 GMT

Since 2020, a very popular annual thread I started encourages our members to share their credit card strategy for the coming year. (Latest: Setting Your >2026< Annual Card Strategy.) It occurred to me that many of our members who are credit card enthusiasts also enjoy managing their personal finances and discussing that topic. Also, we have many members who might be "gardening" their current credit card lineups but planning to make non-FICO related financial changes. This thread will give them a better opportunity to tell the community about their strategy and goals.

We've often told our members that "Finance before FICO." That means that making smart financial decisions is more important than FICO score or what we do with our credit cards. However, "smart" financial decisions are circumstantial and can vary between situations. Sometimes, Finance and FICO go hand-in-hand since a person's top financial goal might be building a better credit score or getting a higher amount of cash rewards. For someone struggling with credit discipline, closing credit accounts to get debt under control may be smart. Some of our members have stabilized their card lineups and are moving on to other goals, such as gardening before applying for a car or home loan. Some of our members are working on budgeting or are struggling with finances in close interpersonal relationships. Some of our members also are working on savings and investment strategies, looking for better rates of return, consolidating accounts, or exploring new-to-them types of investments such as High Yield Savings Accounts, stocks, bonds, mutual funds, ETFs, or cryptocurrencies. Some members might be opening or closing deposit accounts to acquire SUBs, to benefit from improved features, or to flee a bad banking experience. Even more than credit card strategies, optimizing our personal finances is more of an on-going challenge that requires frequent reassessment.

Similar to our planning for credit cards, having a good strategy requires taking inventory of our existing circumstances, conducting an honest evaluation of our financial picture and needs, and carefully considering what changes (if any) would be most beneficial. Writing down a financial plan helps me to come up with strategies for the short term (~six months), medium term (~one year), and long term (~two years.)

As we approach the new year, and with the goal of making credit changes a premeditated and mindful decision, what are the planned changes for your Personal Finance lineup in 2026? (Please discuss credit card changes in that forum unless they are directly related to personal finance.)

Re: Setting Your >2026< Personal Finance Strategy

AndySoCal — Mon, 08 Dec 2025 04:34:22 GMT

I closed two banking relationships this year Langley Federal Credit Union and Pelican Credit Union. I added new credit union Commonwealth Credit Union - KY. Langley and Commonwealth were for credit card reason primarily both are posted in the credit card forum. Pelican I had become a member for their CD rates their rates for the term i was looking for was lower than another credit union I am a member of.

Investment wise no changes planned for this year I will add some to my mutual fund investments after the year end distribution have been completed. In 2024 and in 2025 I bought individual corporate bond investments after the grade bonds 3 to 5 year terms. The companies include Public Storage, Equifax, Con Agra, Alley Bank Honda Finance. Bond prices have risen since the purchase. I am 67 and being careful on the risk side because of my age and time to recoup from and severe market downturn

Re: Setting Your >2026< Personal Finance Strategy

ptatohed — Mon, 08 Dec 2025 10:21:48 GMT

Hmmm, good topic. Let's see, I have to think about this a little.

The $100,000 I put into USB in Spring of this year for the 4% Smartly Visa tier has grown to nearly $113,000 so I am pretty happy with that.... although kind of not...... The $50k I put in self-directed is up to $57.8k while the $50k I put in robo-investing is 'only' $54.9k so I'm not sure what to do there. USB stopped their robo-investing option a few months ago so I think the investments are just left where they were - no more automatic selling/buying, rebalancing, tax-harvesting, etc. I may need to look into changing the $54.9k investments under the old robo.

Still happy with my high yield accounts so, until rates drop a lot lower, I'll keep the same (or more, as I can add to them) amount of cash in those accounts. If rates drop a lot, I would consider investing some of that money instead.

I got a $400 BMO checking bonus and I am working on a $1200 USB business checking bonus so I may continue to pursue more of these checking/saving bonuses!

The Roth IRA that I maxed out at $7,000 at USB is up to $8.9k since early summer so I'll leave that as it is and I will max out this year's contribution (which is now $8,000 now that I am 50).

In late summer of this year, I opened 3 Roth IRAs for minors for my three kids at Fidelity. Put in $500 with a $50 dollar monthly contribution each, and just this month, the accounts hit over $1,000 each. I won't make too many changes there other than when the $50s build up (they are directed to cash in SPAXX), I'll take the built-up money and continue to invest in ETFs - maybe the same ETFs, maybe new ones.

I dabbled in crypto this year for the first time, with a few thousand dollars. Boy to I regret that! Got burned hard. I'm probably done with crypto! I may explore crypto ETFs at most.

I have about $26,000 in fundrise that I started investing in probably 7 years ago. I don't know how much of that is principle as I made random contributions of varying amounts over the years but I know the returns have been good. But I think I am ready to get out. It's safe and it is pretty profitable but it is not very liquid at all. For instance, I think you can only sell once every quarter, and it is not an instant process,

I have a sizable chunk of money in Sallie Mae CDs in the high threes to mid fours APY which all mature in 2026. I'll need to keep an eye on those, make sure I act during the 10 day period, or whatever it is, and decide to withdraw or renew. I'm really bad with missing those 10 day windows and I have had CDs auto renew at rates I never would have accepted but the early termination fee is brutal. Honestly, for that reason, I think I am done with CDs.

I'm interested in precious metals which I have never gotten into before. I may dabble. But, like crypto, I think I'll try my hand at precious metals ETFs instead of directly purchasing.

I may increase my paycheck contributions to my employer's pre-tax retirement plan.

And of course Personal Finance overlaps with Credit Cards, right? I'll continue to get no less than 4% Cash Back on all my credit card spend, not to mention the hundreds and hundreds of Cash earned with the citi ThankYou card offers.

I think that's all I can think of for now! Thanks for the thread Aim!

Re: Setting Your >2026< Personal Finance Strategy

Stuart89 — Mon, 08 Dec 2025 23:40:53 GMT

I have a little bit of credit card debt left to pay off, then I’m focusing on maximizing my score for a home purchase (hopefully)!

Re: Setting Your >2026< Personal Finance Strategy

crystal626 — Tue, 09 Dec 2025 00:04:02 GMT

Well I already made my big move. Dumped my bank that's being bought by PNC for Affinity FCU's 1% cash back checking account.

Other than that I might close some of my other CU accounts next year just to get down to a more manageable number of checking/savings accounts. They build up fast.

Gotta talk to the hubby about his 401k. He's left it hands off completely for the last year or so that he's had it, no idea how it's doing. I've asked about the login info so I can help him with it but I need to poke him about it again I guess. His company's HR department is really not that great, to say the least, so I know he dreads having to ask them about this stuff.

My personal goal is to just keep building my savings. I owe $500 on my Disco at 0% until October 2026 and I have 0% on my iPhone 17 Pro Max on my Apple Card until October 2027 so I'm not in a rush to pay those off.

Re: Setting Your >2026< Personal Finance Strategy

Aim_High — Wed, 10 Dec 2025 20:53:17 GMT

@ptatohed wrote:

I dabbled in crypto this year for the first time, with a few thousand dollars. Boy to I regret that! Got burned hard. I'm probably done with crypto! I may explore crypto ETFs at most.

I'm interested in precious metals which I have never gotten into before. I may dabble. But, like crypto, I think I'll try my hand at precious metals ETFs instead of directly purchasing.

I diversified this year into both a little bit of crypto and precious metals, @ptatohed. Like you, I didn't want the hassles of owning actual cryto or metals, so I put some money into ETFs for each. In addition, it's possible to invest "around" both crypto and precious metals by investing in companies that profit from those industries indirectly. So for example, I bought some stock in Coinbase (COIN) and some crypto mining company stocks, some of which also seem to be diversifying into the AI data center business. Besides a precious metals ETF, I have some shares in precious metals mining companies. For crypto, there are dozens of currencies but I hear there's a lot of scams out there. I just stuck with a Bitcoin ETF, since it seems to be the most stable and mainstream currency. I purchased the VanEck Bitcoin Trust (HODL) and later found out it stands for "Hold on for dear life!" LOL It's been volatile but I have faith in those who predict it's the "new digital gold." Merrill Lynch wouldn't allow me to buy it, I suppose since it's considered a riskier investment, so I bought it through Schwab. I heard that ML is now telling advisors they can put clients in crypto at a conservative 1 - 4% of portfolio holdings. This is consistent with other advice I've heard and plan to do the same with the precious metals.

For my Bitcoin ETF, I was going to go with Blackrock's IBIT, which I believe is the largest fund. However, I went with VanEck HODL since it has slightly lower fees. (See a longer list below.)

For a precious metals investment (Gold), I invested in a State Street Global Advisors Fund (SPDR: GLD). (SPDR = Standard and Poors Depository Receipts.)

SPDR Gold Trust (GLD) is the largest and most liquid gold ETF with over $125 billion in AUM in late 2025 (more than double the AUM of iShares Gold Trust). It's the gold standard for investors seeking direct exposure to the price of the yellow metal. The ETF's sole asset is gold bullion, which it stores in secure vaults. Investors pay a premium for this leading gold ETF. It has a higher expense ratio than other ETFs that own physical gold bullion at 0.4%. However, it's still relatively cheaper than shipping, insuring, and storing gold bars and coins, especially when you factor in its liquidity. >link<

I went with GLD because it was considered the "gold standard," LOL ... pun intended. But in hindsight, perhaps I should have considered others with lower expense ratios. I found these also.

The Franklin Responsibly Sourced Gold ETF (FGDL) holds physical gold. It only holds gold sourced from accredited refiners that demonstrate their efforts to respect the environment and combat money laundering, terrorist financing, and human rights abuses. This responsibly sourced gold ETF has a low expense ratio of 0.15%.

The Goldman Sachs Physical Gold ETF (AAAU) is another ETF that holds physical gold. Like iShares Gold Trust, this fund holds gold bullion in the London branch of JPMorgan Chase. It has a lower ETF expense ratio than its larger rivals at 0.18%.

Franklin Bitcoin ETF (EZBC)	0.19%
VanEck Bitcoin Trust (HODL)	0.20%
Bitwise Bitcoin ETF (BITB)	0.20%
ARK 21Shares Bitcoin ETF (ARKB)	0.21%
iShares Bitcoin Trust ETF (ticker: IBIT)	0.25%
Fidelity Wise Origin Bitcoin Fund (FBTC)	0.25%
Invesco Galaxy Bitcoin ETF (BTCO)	0.25%
CoinShares Valkyrie Bitcoin Fund (BRRR)	0.25%
WisdomTree Bitcoin Fund (BTCW)	0.25%
Hashdex Bitcoin ETF (DEFI)	0.90%
Grayscale Bitcoin Trust ETF (GBTC)	1.50%

Re: Setting Your >2026< Personal Finance Strategy

Aim_High — Wed, 10 Dec 2025 20:49:32 GMT

I haven't been posting on my own threads about credit card or finance plans, even though I am planning very carefully. However, posting may help me to commit more to following through!

In the past several years, I've complicated my credit card and banking relationships. On the banking side in particular, I feel the need to untangle the complexity. I've had at least two banks or credit unions for many years and don't ever want to go back to a single depository relationship. On the other hand, while taking advantage of SUBs, broadening my banking relationships, and diversifying funds, I've really over-complicated things! My financial adviser is mystified about why I've created this mess, at least in his eyes! I just did a quick count and I have (28) open deposit accounts at (14) financial institutions. *This does not even count DW's accounts which she holds separate!! Some have very limited funding and see little if any activity. I have (11) checking accounts, (8) regular banking 'savings' accounts, and (9) higher-yielding savings accounts that are either bank money markets or online HYSAs. In my defense, I've been saving for a big home remodel which we're in the process of completing and a lot of my cash has been sitting it those multiple HYSAs. I was also aggressively saving and had conflicted feelings about where and how much of that money I wanted to invest. As I'm in the process of spending money on the remodel and moving money to investments, the need to keep some of these accounts open is diminishing.

I've also stymied my tax advisor since she has had to deal with all of these banks! And since many report interest earnings (IRS form 1099-INT), I'm adding to my tax preparation fees.

I don't have an end-goal yet. I'm going to start with many of those "savings" accounts that I opened in companion with checking. Likewise, while I like the main HYSAs I have open and they earn respectable rates, I think I can do a little better. I plan to close and consolidate HYSAs into one or maybe two accounts.

I've also been moving money into both Merrill Edge and Schwab brokerage accounts. Until this year, I haven't invested directly in stocks very much, and I've enjoyed doing some research, watching the business news, and picking some (hopefully) winners for the long term.

Re: Setting Your >2026< Personal Finance Strategy

TheRedHat — Thu, 11 Dec 2025 02:45:15 GMT

My goal is to keep my finances boring, simplified, and steady. I have a Cash Management Account invested in SPAXX which I use for both Bill Pay and emergency savings. I have another account invested in SWPPX that I use to save money for travel and major purchases. I have yet another account invested in VXUS which I'm using to save up for a new car or at least a down payment, whichever comes first once my current car can no longer function. I have a local credit union (NFCU), too, in case I need to deposit cash or anything else where I need a local bank. I have a Easy Start Share CD there with a really good rate that I'm going to use as fun money once it matures. (I like watching numbers go up. lol) And finally, I have a Roth IRA fully invested in VT.

I have a traditional IRA with my company that I will continue to contribute up to their match with. I'm getting an HSA next year which I plan to max out. Not sure what I want to invest that money in just yet. After I max that out, I want to max out my Roth IRA, as well. I have two more credit cards left to pay off, which I plan to do next year also. What I realized is that I really enjoy saving and watching accounts grow much more than receiving cashback and points from credit cards.

Re: Setting Your >2026< Personal Finance Strategy

DakotaM — Thu, 11 Dec 2025 04:01:06 GMT

As far as savings go, I think I've got pretty much all my cash earning 4% or higher, though I suppose that will come down a bit with the rate cut announcement! I've got my checking with Presidential Bank since their high-yield checking just requires direct deposit and 7 of basically any kind of transaction monthly. I have that taken care of just with monthly payments, so basically no hoops to jump through or remember to do. I do plan on continuing to pursue bank account bonuses for a little extra - If the ones I'm working on now payout before year's end, I'll have make around $5,000 just from that.

401k and Roth IRA are pretty much set with everything in index funds.

I did get into real estate this year and will be working on that into the next. The main thing I want to optimize there is interest on the money in the business bank account. I'm spoiled on the personal side and it's much harder to find business accounts, especially checking, that pay any interest.

Re: Setting Your >2026< Personal Finance Strategy

ptatohed — Thu, 11 Dec 2025 07:09:45 GMT

@Aim_High wrote:
@ptatohed wrote:

I dabbled in crypto this year for the first time, with a few thousand dollars. Boy to I regret that! Got burned hard. I'm probably done with crypto! I may explore crypto ETFs at most.

I'm interested in precious metals which I have never gotten into before. I may dabble. But, like crypto, I think I'll try my hand at precious metals ETFs instead of directly purchasing.
I diversified this year into both a little bit of crypto and precious metals, @ptatohed. Like you, I didn't want the hassles of owning actual cryto or metals, so I put some money into ETFs for each. In addition, it's possible to invest "around" both crypto and precious metals by investing in companies that profit from those industries indirectly. So for example, I bought some stock in Coinbase (COIN) and some crypto mining company stocks, some of which also seem to be diversifying into the AI data center business. Besides a precious metals ETF, I have some shares in precious metals mining companies. For crypto, there are dozens of currencies but I hear there's a lot of scams out there. I just stuck with a Bitcoin ETF, since it seems to be the most stable and mainstream currency.   I purchased the VanEck Bitcoin Trust (HODL) and later found out it stands for "Hold on for dear life!" LOL It's been volatile but I have faith in those who predict it's the "new digital gold."   Merrill Lynch wouldn't allow me to buy it, I suppose since it's considered a riskier investment, so I bought it through Schwab. I heard that ML is now telling advisors they can put clients in crypto at a conservative 1 - 4% of portfolio holdings. This is consistent with other advice I've heard and plan to do the same with the precious metals.

For my Bitcoin ETF, I was going to go with Blackrock's IBIT, which I believe is the largest fund. However, I went with VanEck HODL since it has slightly lower fees. (See a longer list below.)

For a precious metals investment (Gold), I invested in a State Street Global Advisors Fund (SPDR: GLD). (SPDR = Standard and Poors Depository Receipts.)

SPDR Gold Trust (GLD) is the largest and most liquid gold ETF with over $125 billion in AUM in late 2025 (more than double the AUM of iShares Gold Trust). It's the gold standard for investors seeking direct exposure to the price of the yellow metal.   The ETF's sole asset is gold bullion, which it stores in secure vaults. Investors pay a premium for this leading gold ETF. It has a higher expense ratio than other ETFs that own physical gold bullion at 0.4%. However, it's still relatively cheaper than shipping, insuring, and storing gold bars and coins, especially when you factor in its liquidity. >link<

I went with GLD because it was considered the "gold standard," LOL ... pun intended. But in hindsight, perhaps I should have considered others with lower expense ratios. I found these also.

The Franklin Responsibly Sourced Gold ETF (FGDL) holds physical gold. It only holds gold sourced from accredited refiners that demonstrate their efforts to respect the environment and combat money laundering, terrorist financing, and human rights abuses. This responsibly sourced gold ETF has a low expense ratio of 0.15%.

The Goldman Sachs Physical Gold ETF (AAAU) is another ETF that holds physical gold. Like iShares Gold Trust, this fund holds gold bullion in the London branch of JPMorgan Chase. It has a lower ETF expense ratio than its larger rivals at 0.18%.

Franklin Bitcoin ETF (EZBC)
0.19%
VanEck Bitcoin Trust (HODL) 0.20%
Bitwise Bitcoin ETF (BITB) 0.20%
ARK 21Shares Bitcoin ETF (ARKB) 0.21%
iShares Bitcoin Trust ETF (ticker: IBIT) 0.25%
Fidelity Wise Origin Bitcoin Fund (FBTC) 0.25%
Invesco Galaxy Bitcoin ETF (BTCO) 0.25%
CoinShares Valkyrie Bitcoin Fund (BRRR) 0.25%
WisdomTree Bitcoin Fund (BTCW) 0.25%
Hashdex Bitcoin ETF (DEFI) 0.90%
Grayscale Bitcoin Trust ETF (GBTC) 1.50%

@Aim_High , dude, I really, really appreciate you composing this post in response to the two investments I mentioned I am interested in. Very, very helpful and, honestly, you taking the time to do this means a lot to me. Thanks man!

Only read though it once but, rest assured, I'll be back to read it again slowly, click the links, and open separate browser windows!

Re: Setting Your >2026< Personal Finance Strategy

MarkintheHV — Thu, 11 Dec 2025 11:24:16 GMT

I don't think I will change much with my financial strategy. I have been pondering closing my Delta card as Delta and I are not getting along too well these days. Delta is using AI to quote ticket pricing based on individual factors....meaning my ticket may cost more than your identical ticket. My financial strategy from 2025 seems to be firing on all cylinders, so why upset what is working. In 2025, I turned over management of my investments to Fidelity, and for 2025 I did quite well (about 17% gain), so we will stay with that one. I did change my AmEx BCP to the Morgan Stanley BCP (I had old dormant accounts with eTrade) because after spending 15k they give you $100 annual fee credit. I do think about getting rid of all my cards except for my AmEx BCP, NFCU Flagship and Citi CCR. I really dont seem to use the others anymore.....but, that is something that is way down the road.

Re: Setting Your >2026< Personal Finance Strategy

Aim_High — Thu, 11 Dec 2025 18:58:21 GMT

@ptatohed wrote:
@Aim_High wrote:
I diversified this year into both a little bit of crypto and precious metals, @ptatohed ...
@Aim_High , dude, I really, really appreciate you composing this post in response to the two investments I mentioned I am interested in. Very, very helpful and, honestly, you taking the time to do this means a lot to me. Thanks man!

Only read though it once but, rest assured, I'll be back to read it again slowly, click the links, and open separate browser windows!

You're very welcome, @ptatohed! Some of that was part of my own learning curve but the list of Bitcoin ETFs and the paragraph on the SPDR: GLD was copied in a quick research from other websites. Let us know what you find out when you do your own research, and perhaps start a new personal finance thread with your comments!

Re: Setting Your >2026< Personal Finance Strategy

USMCOne — Fri, 12 Dec 2025 05:38:57 GMT

2026 will be a big year for myself. I owe very little on Credit Cards have the ones I desire. Owe about 2500 total with 2000 on my Amex Business Blue Plus which is left over from hitting 6k spend to get 75k MR points. All that is under 12 months no interest as part of the promo so no real urgency to pay that off.

About to start a new job as a expat in UK which gives me tax free income up to first 132,900 for 2026 as I will be living over there. I plan on downgrading my Amex Delta Reserve as I will not be traveling as often as I have been in the least (Only in USA 2 months this year). Also plan on trimming a couple cards that I never use but might keep them.

Part of my investment strategy as goulish as it sounds is Mortuary Services. Most of America services for that is controlled by 3 main companies believe it or not with 2 being publically traded and 1 private. 2 million Boomers dying a year with it ramping up to 5 million in the next decade. There stocks are already doing well. Part of my long term investment strategy is everything Boomer. High cash levels, property owners, 401ks etc they will be burning cash like crazy for services catered to them...they already are. Business for that generation will be very big.

Re: Setting Your >2026< Personal Finance Strategy

NoHardLimits — Sat, 13 Dec 2025 02:10:48 GMT

I'm happy with my current assortment of bank/brokerage accounts. My main bank is JP Morgan, and I added a new relationship with NFCU a little over a year ago. I considered moving some assets to BofA to take part in the Preferred Rewards Program, but I'm not sure if I want to add another banking relationship. Unlike with my complicated credit card portfolio, I prefer a much simpler arrangement when it comes to actual deposit accounts.

For investments, P2 and I mostly use Vanguard and Schwab, but we are giving some thought to consolidating the IRA accounts with a single financial institution to begin preparing for RMDs (still a few years away as the IRS keeps extending the age requirement).

For FICO strategy, I've been pondering the possible effect of my last installment loan falling off in 2028. Should I plan to set up an SSL with NFCU when that time comes? Should I take out a car loan the next time I buy a new vehicle? Is this a case of FICO over finances?

Re: Setting Your >2026< Personal Finance Strategy

Aim_High — Sat, 13 Dec 2025 02:33:20 GMT

@NoHardLimits wrote:

For FICO strategy, I've been pondering the possible effect of my last installment loan falling off in 2028. Should I plan to set up an SSL with NFCU when that time comes? Should I take out a car loan the next time I buy a new vehicle? Is this a case of FICO over finances?

I understand the installment loan question, @NoHardLimits. I don't believe you need to keep one active on your account since it will take a few years until they fall off reporting. (??) But yes, you could get a new vehicle on a 0% financing deal or just take out a small loan (like SSL or low apr vehicle loan) and pay it off quickly. I don't think the "credit mix" is that big of a hit on FICO, though, and as we get into retirement, finances over FICO is probably more the appropriate mantra.

Re: Setting Your >2026< Personal Finance Strategy

ptatohed — Sat, 13 Dec 2025 22:35:20 GMT

I don't believe that anyone should ever purposely pay interest in an attempt to raise a FICO score.

Re: Setting Your >2026< Personal Finance Strategy

ptatohed — Mon, 15 Dec 2025 08:20:37 GMT

Alright Mr. @Aim_High , my 3 kids' Minor Roth IRAs had $129 each in cash built up so I bought them 2 shares of AAAU ($42.44) and 1 share of HODL ($25.53) tonight! Thanks for all your help!

Hey, with me wanting to get out of fundrise, I was thinking of moving into more liquid REIT ETFs. Do you have any suggestions for some good REIT ETFs?

Thanks Aim!

Re: Setting Your >2026< Personal Finance Strategy

Aim_High — Mon, 15 Dec 2025 21:17:49 GMT

@ptatohed wrote:
Alright Mr. @Aim_High , my 3 kids' Minor Roth IRAs had $129 each in cash built up so I bought them 2 shares of AAAU ($42.44) and 1 share of HODL ($25.53) tonight! Thanks for all your help!

Hey, with me wanting to get out of fundrise, I was thinking of moving into more liquid REIT ETFs. Do you have any suggestions for some good REIT ETFs?

Thanks Aim!

What you're doing for your kiddos is awesome, @ptatohed! Glad to help.

I don't have REIT recommendations for you. I've looked into some various REITs in last few years but was never convinced it was where I wanted my money. Depending on the business model, the type of properties and such, it seems the results can be rather inconsistent, IMO. While growth is possible, it appears to me that dividend income and diversification of principle are the larger motivations for REITs. Maybe one day I will return and look into them a little bit farther. Let us know if you find some good ones.

Is the reason you're wanting out of fundrise due to liquidity issues or were there other disappointments?

Re: Setting Your >2026< Personal Finance Strategy

Thomas_Thumb — Mon, 15 Dec 2025 23:52:43 GMT

@Aim_High wrote:
@NoHardLimits wrote:

For FICO strategy, I've been pondering the possible effect of my last installment loan falling off in 2028. Should I plan to set up an SSL with NFCU when that time comes? Should I take out a car loan the next time I buy a new vehicle? Is this a case of FICO over finances?
I understand the installment loan question, @NoHardLimits. I don't believe you need to keep one active on your account since it will take a few years until they fall off reporting. (??) But yes, you could get a new vehicle on a 0% financing deal or just take out a small loan (like SSL or low apr vehicle loan) and pay it off quickly. I don't think the "credit mix" is that big of a hit on FICO, though, and as we get into retirement, finances over FICO is probably more the appropriate mantra.

I understand Klarna now reports as a loan. I buy things on Ebay and see 4 month 0% interest Klarna payment options. If my last closed loan were within a year of falling off I'd contemplate buying a $100 item with 4, $25 installment payments to Klarna. Although the loan would close quickly, I assume it would remain on file for 10 years.

Possible downside - would the Klarna account report as a CFA?

EOD, I'd likely do nothing and let my score drop to 800-810 or, heaven forbid, 780.

I've been able to adjust to a sustained sub 850 score on EQ and TU since my mortgage closed. I feel confident I can withstand the ego blow that even a sub 800 score might bring when it falls off my CRA reports.

No interest in setting up a SSL.

My financial goal for 2026 is to reduce Ebay and Amazon spend to offset major increases in healthcare insurance premiums.

Re: Setting Your >2026< Personal Finance Strategy

Patient957 — Tue, 16 Dec 2025 00:13:25 GMT

@ptatohed wrote:
I don't believe that anyone should ever purposely pay interest in an attempt to raise a FICO score.

The interest rate on an SSL is 2%. The maximum principal anyone would borrow is around $275. So it's less than $6 per year interest.

If the 30 points I gained gets me approved for one credit card I otherwise wouldn't have been approved for, in most cases the SUB alone would cover that $6 for 50 to 100+ years.

Having a high credit score can be extremely profitable for those of us willing to use it for such profitable endeavors.

Some people might also think the $6 is worth it just to admire that 800+ credit score, and who am I to say they'd be wrong?