I currently have a score of 640, recently graduated last May with around 14,000 in student loans and no credit cards. Currently I have one store credit card and in regards to the student loans have paid on time and over the requested amount for the past year so that I now owe about 13,200. My interest rates are not too high but as it is so far I have not yet accumulated 50 dollars in interest for 2008. I do have one loan for about 400 dollars now as well in this mix.
Next year (fall) I am looking at getting married and trading in my car to buy a new one. My question is should I continue paying of my student loans aggressively (including the option of paying of the smallest loan completely) or would my interest rate not be improved effectively enough to warrant this tactic? If i don't pay of this loan as aggressively I would obviously be saving toward the principle of the car loan.
Or should I get another credit card to pay bills on so i can have a varied bill type on my history?
What do you think would be the most advantageous tactic, given the time frame?
Considering the market, I would either (a) continue to pay student loan aggressively or (b) put extra cash an a ROTH IRA. Paying student loans quickly marginally impact your score.
On another note, I would apply for an Visa or a MC, and a Amex or Discover (2 cards total). The increased credit diversity and increase credit limit, will help your score significantly in the long run.
__________________________________________________ Time to clean house and get rid of CCs from bad CCCs. Opt'd Out and Paying off the Balance: BofA. Closed: Chase Freedom. Keeping: Amex Blue, Amex Costco Cash back, Citi Forward, USAA MC, USAA Amex, and PenFed Platinum Cash Back. Next up for review: Chase Sapphire...