This is probably a stupid question, but I've heard this more than a couple times so maybe there is some truth to it. Do you need to make 6 months of payments for a car loan to 'count' with the credit bureaus?
We just got a car loan a couple months ago, but it's an older car, so the interest rate is truly awful. We're leaning towards just paying it off after our house closes. But, if it makes a difference, then we'll pay the higher interest for another 5 months.
Ah, that would probably be the source of the rumor then.. It seemed odd to me because back when I was 20 or so I needed a car in a hurry, so got one with a loan then paid off the loan two months later with my tax return and that is still on my credit report. I think it falls off next year, only shows two payments and paid off. I was just wondering if it was weighted differently then the loan I paid on for four years.
It was a big sticker shock shopping around this time. Granted, it's never been exactly easy to find financing for a ten year old car, but last time I financed a car in 2007 I had about a 700 credit score and got a used auto loan at 9%. My husband had a 730 when he was shopping around a couple months ago and couldn't find anything under 24%. We were going to just pay on it for a year or so to help build his credit further, but, if it's not really going to make any difference I'd rather just pay it off then pay 24% interest.
Yeah, I've been in the habit for awhile now of buying 10 year old cars and driving them for till they're ready for the junk yard. We've been down to one vehicle for about 3 years now but finally ran into enough of a scheduling conflict with his work and my school to make it worthwhile to pick up second vehicle again. We were supposed to close on a house back in August, but, it was a short sale that dragged on and wasn't completed on the owner's end of the deal until beginning of January, then the bank we were dealing with lost our file and we had to start over again and they just didn't care enough to get it together because it was a $50,000 mortgage. That finally fell through beginning of February. All this time we had planned on already being in a house and buying a car in January, so, when February rolled around we took advantage of the gap in time between applying with another mortgage company and went ahead and financed the car. Never know what closing costs are going to be, so instead of paying cash like we'd planned for used or buying new with financing we got stuck financing used. He's signed on another house and so far it looks like we'll have enough left after closing to pay off the car and the credit card.
It was annoying, but we needed a car immediately, so that's the deal we got stuck with.
Sure, not a problem.. I know they're tough to find, but may be a good thing for someone.
PFS Financial
Unfortunately looks like you have to go to a participating dealer instead of applying online.