@Anonymous wrote:
Nothing wrong really.
Installment loans add 20-30 points for having them.
Citi did use a bankcard score.
SSL/PL.... either would fillthe void but, a mortgage also works.
Duly noted. The loan would be just to fill that space in the credit mix if we do it. Next goal is building up savings and beefing up retirement.
750's for scores puts you in prime territory to pick up a few good cards and/or refi the car for a lower rate if you want to drag out the paymetns instead of opting for the SSL/PL option. Getting a refi for 2-5% on the card is a lot lower than a PL which will start at 7% or higher. I got an offer for a PL through Amex and it's a flat 8.98% but, the other day one popped up on BBVA when I was checking my accounts with them and it was on a scale from 6%-11% for 12-72 months.... 6-7% though for 12-36 months.
The CU isn't offering any refi options. The note originated at 7.99% but at about six months in they gave us a rate modification (FICO score was north of 725 I think at the time), so it's at 4.865% now. The interest rate situation is the other part of why I would likely consider paying that loan off ahead of schedule. The hope was to have the payment low enough that it didn't really interfere with other financial goal progress.
If I picked up on everyhting in the post your only credit items right now are the CC + Car Loan?
I would concentrate on picking up 2-4 more CC's to round things out for a CC foundation and make those scores work for you in the form of SUB's (bonus for new accounts + spend in the first 3 months)
Next I would figure out the timing on the vehicle.... either refi and drag the payments out through the CU... they might even be able to "recast" the loan for a small fee instead of doing a new loan altogether. Then you can keep the loan / age / etc. and only take a HP to convert it to a longer term / lower rate.
On my credit report, the only things that show are the installment loan for the car, and EQ and EX show the closed CC account I previously had (with the same CU). That CC account doesn't show on the TU history, so the ding there is a combination of no revolvers and shorter credit history.
My thinking re timing is that any drop in scores for applying for the CC and the loan would be buffeted when the car is paid off. The balance there is under $8k and the present projection is to payoff by January 2020. That money and the additional principal payments is then to be funneled into building out an emergency fund and more active funding of retirement accounts. The CU hasn't been pretty firm with no refi—if I could've gotten the payment to 1/2 or a 1/3 of what it was, I might have entertained dragging it out. As it is, I wouldn't try to use another mechanism to pay it off because I really like how the payments are managed now (just account to account transfer that posts immediately).
If you decide to get a newer vehicle your scores would get you premium dealer financing with scores over 740... some delaers min are 720 though. Depends on the financing offers at the time of shopping / signing the paperwork. I picked up 2.9% back in 2014 through a dealer instead of my normal shopping rates and bringing a blank check from a CU. If you're going USED though just bring your own financing and skip the dealer pull.
If anything now, it'd be developing a pile of money improve upon whatever terms we were offered when that's a discussion. This was the first car note I've had in nearly four decades of life. I didn't/do not care for that monthly payment at all. It was basically like buying an Apple Watch every month. We brought our own financing with the CU last time, but succumbed to the curiousity of the dealer pull attempting to go up one trim level. Won't happen next time.
For the CC's knowing where your typical spend is and how much would be helpful for picking out some cards that might work better than others.
For the photo portion of it.... I built my own system for a whole lot less than 6K with more power and performance than you'll ever get off the shelf. I'm running a I7-8700K w/ 5 drives in a RAID 10 configuration + other goodies like combinging the NAS/Router/WIFI/DVR and other stuff into it. I went a little overboard on specs and changed my mind on a few features over time but, I can always sell the spare parts like the Graphics cards, mobo, case, cables, fans, etc. The main goal was to drop from 5-6 devices and power usage into a single box that handles everything. If I decided to go fiber for internet I can just pick up a 10GB fiber card for $100 vs renting or buying the proper router for $$$$.
Monthly spending is just under $6k/monthly on average. On the photo side, I'm effectively replacing a 10-year old Mac Pro (cheese grater) and a 2011 Macbook Air with one laptop. That $6k is inclusive of the computer (15" MBP i9, 32GB memory, 2TB SSD, 4GB video card, the upgrades marked up obviously because, Apple and no aftermarket upgrade option), some software and tethering accessories, and a Synology enclosure and drives for backups. The only thing I think I'd feel a way about is taking that long to pay for a computer. If I know any better, that loan gets paid off within 18 months, and I play the SL game to keep the mix afloat, or when I need the scores to matter.
My concern otherwise was just getting cards with limits that were usable (nothing will be spent that can't be paid in full), and whether I was likely to get denied. I think if I went for a 3rd card, it'd probably be some kind of travel rewards-oriented card. As it is, cash back will work reasonably fine for now.
Thanks for the feedback Obscure-Expert!
