topic Re: How much is a HP worth to you ? in General Credit Topics

How much is a HP worth to you ?

Anonymous — Sun, 03 Apr 2016 15:14:07 GMT

In dollars, how much a HP is worth to you?

Currently I have car loan with 3% APR, I was thinking to refinance the loan and drop it to 1.99 %. This would save 160 dollars the first year and 80 dollars next year, honestly I though the HP was not worth it since the net savings were not a loot. I would probably had done it if the savings amount were more like 500 a year.

Either for a CC or a loan what's your threshold? What's the minimum dollar amount you are expecting to apply for a consumer loan.

Re: How much is a HP worth to you ?

Anonymous — Sun, 03 Apr 2016 15:18:35 GMT

bout tree fiddy

Re: How much is a HP worth to you ?

myjourney — Sun, 03 Apr 2016 23:08:36 GMT

Two different answers to your question:

A consumer or any other loan I'd value a HP at 1k or better for the first year alone plus whatever savings the 2nd or more years... so final range 1k-3.5k

CC valued no less than $500.00 first year via bonus plus perks of the card so final in the range of $600-$1000

Maybe more depending on the card

Bonus answer mortgage

HP= thousands per year

Re: How much is a HP worth to you ?

CH-7-Mission-Accomplished — Mon, 04 Apr 2016 00:03:55 GMT

@myjourney wrote:
Two different answers to your question:
A consumer or any other loan I'd value a HP at 1k or better for the first year alone plus whatever savings the 2nd or more years... so final range 1k-3.5k
CC valued no less than $500.00 first year via bonus plus perks of the card so final in the range of $600-$1000
Maybe more depending on the card

Bonus answer mortgage
HP= thousands per year

Are you saying you would not take one HP unless you could earn $600 to $1000 in bonuses, etc.? Wow!

Isn't the point of having good credit to save you money? If you can cut your interest rate on a loan, isn't cash worth more than not taking an HP?

Re: How much is a HP worth to you ?

myjourney — Mon, 04 Apr 2016 00:38:53 GMT

@CH-7-Mission-Accomplished wrote:
@myjourney wrote:
Two different answers to your question:
A consumer or any other loan I'd value a HP at 1k or better for the first year alone plus whatever savings the 2nd or more years... so final range 1k-3.5k
CC valued no less than $500.00 first year via bonus plus perks of the card so final in the range of $600-$1000
Maybe more depending on the card

Bonus answer mortgage
HP= thousands per year
Are you saying you would not take one HP unless you could earn $600 to $1000 in bonuses, etc.? Wow!
Correct for CC's only tho

Isn't the point of having good credit to save you money? It sure is but since I don't carry balances 0% cards have no use for me currently ...not to say in the future I wouldn't take advantage of one but for now...........

If you can cut your interest rate on a loan, isn't cash worth more than not taking an HP?
Not sure where I lost you but I covered that under consumer or any other type loan
Of course I would save with those but still I place a value of a thousand or more on the HP in savings be it Re-fi, auto, consumer, line of credit etc etc any type loan

Other wise is it really worth a HP to save $300 over 2 years and have that HP for 2 years?

No, for me others may feel different and I respect that

Re: How much is a HP worth to you ?

Revelate — Mon, 04 Apr 2016 07:03:13 GMT

$0. If it saves you money or makes you money, take it.

Unless I have something actually important coming up within a year (like a mortgage): then it's priceless. Admittedly that'll change once I'm comfortably gold-plated.

Re: How much is a HP worth to you ?

Thomas_Thumb — Mon, 04 Apr 2016 14:28:56 GMT

Depends on circumstances. For me an HP for a CLI or a new card has no value. Neither would provide an added benefit. On the flip side, a couple HPs don't really have a significant impact on score. If you travel extensively and a card offers a lot of travel perks, I wouldn't worry about the HP.

If new credit is needed for an installment loan (car, Home equity, mortgage) then the associated HP(s) are a part of doing business. If you can save $500 with a refi, go for it. I'd personally stick with the existing car loan (or pay it off early - if possible) if total savings were much less than that.

Re: How much is a HP worth to you ?

Anonymous — Mon, 04 Apr 2016 20:46:56 GMT

I approached the question differently. If Experian (where I have the most HPs) contacted me and offered to remove my most recent HP for $500, would I do it? No.

For $100? No. $50? No. $20? No. $5? Okay, for $5 I'll do it.

So that's my answer. A HP is worth $5 to me.

Re: How much is a HP worth to you ?

takeshi74 — Tue, 05 Apr 2016 12:20:48 GMT

I don't really worry about it. With my credit profile a single HP has little impact. That said, I don't just go out and incur hard pulls willy nilly either.

@Anonymous wrote:
Currently I have car loan with 3% APR, I was thinking to refinance the loan and drop it to 1.99 %. This would save 160 dollars the first year and 80 dollars next year, honestly I though the HP was not worth it since the net savings were not a loot.

Don't overlook the other factors as well. You'll drop your AAoA with refinancing. Length of Credit History is typically a bigger slice than New Credit

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

...though New Credit can seem to be a bigger constraint depending on one's specific credit profile.