Adding an installment loan -- the Share Secure technique

[Anonymous]

Thanks again CGID.  Everything worked out perfectly. I couldn't have done any of it without your help and the help from these forums.

The time and effort you and others put forth in these forums to help people just like me, is not only admirable, but also very much appreciated.

I hope to be able to share my experiences with those that come behind me to try and help in any way I can.  It's off to the garden for me.  I'm done.  

I don't know if it helps or not, but I did click through this site to apply for a couple of the cards I was approved for.

[Anonymous]

You're very welcome.  And glad you are choosing to take a nice long break from CC applications.  You have PLENTY of credit cards now.  Four cards is all anyone needs, though there's no harm in having more of course.

Also delighted to hear that you are building up a rainy day fund.  Everyone should have one and even a person with a low income should have more than $500 in it. 

[Subexistence]

Why is it necessary that the loan is secured?

[Anonymous]

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@Subexistence wrote:

Why is it necessary that the loan is secured?

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Because nobody will give you an unsecured loan and let you have your way with it like that. It's just quick and easy and most people get approved. The fact that it's secured is pretty irrelevant because so much gets paid off immediately. I'll have a grand total of $44 tied up for 5 years and the loan product itself is going to cost me something like $9 in interest. I'll take that all day for a spike in EX FICO 2. 

[Anonymous]

In theory...
If you had a 30k car loan that you still owed say 98% on...
Couldn't you do a 10k ssl... pay it down to 9%... thus driving your OVERALL uti down?
So you'd own 31k on 40k vs 29k on 30k?

[Subexistence]

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@Anonymous wrote:
In theory...
If you had a 30k car loan that you still owed say 98% on...
Couldn't you do a 10k ssl... pay it down to 9%... thus driving your OVERALL uti down?
So you'd own 31k on 40k vs 29k on 30k?

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If you could pay the SSL down to 9%, why not use that amount to pay down the car loan to around 19k on 30k

Edit:the sentence I have above is outdated.

[Anonymous]

In my theoretical world I drive a Maserati... but I dont.
Could you take a 10k cash advance on a CC to do this?
I have no desire to try... more curious.

[Subexistence]

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@Anonymous wrote:
In my theoretical world I drive a Maserati... but I dont.
Could you take a 10k cash advance on a CC to do this?
I have no desire to try... more curious.

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Sorry I misunderstood your post. You're right about the theory.

[Anonymous]

No worries.

[Anonymous]

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@Anonymous wrote:
In my theoretical world I drive a Maserati... but I dont.
Could you take a 10k cash advance on a CC to do this?
I have no desire to try... more curious.

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I think if you can get a cash advance from a CC for a better interest rate than your car loan, you made a horrible, horrible mistake when you bought that car...