paramed3,
At 33% you should definitely pay that off asap. I have been told that the optimal time to keep an installment loan is 24 months, but you start to reap benefits from an installment loan after 6 months.
(Formerly known as: Credit is my hobby (1.6M)/TCL objective)
Only 63k are you kidding me that is incredible. Your credit score should be 850. I wish mine was that if so I would have this property and the rental on it next door paying 80% of the mortgage payment and probably be looking for another investment property. That is a pretty good income. My son is an engineer and he makes incredible money. Down south here that goes a long ways.
Starting FICO Score 2007: >> >> 533 -- God those were some Dark Days !! You are right I have kept it long enough. I am going to pay it off next week when it's due. I have the history from it and the interest is just sicking. I have no clue why I did that back then. I hope I never need a subprime again. Guy that owns this property told me he could get me qualified with the lower income and not able to use the rental knowing the rental next door would pay most of the property payment but the interest would be 13% on 250k. I said NO THANKS. I did not bust my butt and the rates are dirt cheap to get robbed.
paramed3,
I messed up my credit in 2007 and swore off credit. It wasn't until 2012 that I realized that I needed credit and thus began the rebuilding. If I had started back in 2007, my score would be so much higher. When I started in 2012 I was in the mid 500's. 63k isn't really a lot of money these days, but amex likes me just as much as I like them. They are my go to creditor. With them, if I apply and get denied, it's only a soft pull. If I'm approved then it's a hard pull. This is how it works with existing customers.
I read about the bluebird thing here online but I am still not sure why you guys do that. Why not just use one of your cards to pay it off and with that income seems anyone would give you a checking account and a CC. I have 3 checking accounts I would think you would not need bluebird but I am not sure of the advantages of it.
paramed3,
You were right to refuse. That was a poor deal.
paramed3,
The advantage of bluebird is that you can turn giftcards that you purchase with a credit card into cash. An ordinary checking account will not let you turn that giftcard into cash and you can't pay most mortgates and auto loans with a credit card. Plus you get points by using the credit cards to buy giftcards.
oh I see, my sister has a discover and everytime I turn around she has like 75.00 in gift cards from it. Every major purchase she has she uses it so they can use them on vacation the gift cards but her credit is 800 + and great income. That makes sense what you say now.
I think I am going to pay the finance co off tomorrow so it will report by the end of the month. Maybe get a bump out of it who knows. Yea that 13% deal even though I want this property BAD was horrible but he does want me to have it. He said he would consider taking on a second with the lender so I would qualify. He is a nice guy. Lives in a 1.5 million dollar home and has 50 if not more rental incomes and now a subdivision. He is a contractor. Very nice guy and knows I want this really bad.
