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Old 06-24-2010, 05:03 PM   #9
wylde1
I am the Stig
 
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Drives: Black w/ IOM stripe 1SS
Join Date: Jan 2010
Location: Saskatoon, SK, CAN
Posts: 1,312
well here's my plan if it helps any.

I was approved for a line of credit at a very low interest rate, but I was only approved up to 5k less than the cost of the car. SO I took the 6 year financing because it brought my monthly payment down a bit, and then once I get it paid down to the amount of my line of credit. I'm going to pay off the car loan with the LOC, and only be paying a third of the interest. (essentially re-financing to a MUCH better interest rate)

there are a couple other reasons I'm doing it this way. I've never had a car loan before, and I'm trying to build up my credit to buy a house next spring. There are two kinds of credit. I don't remember the exact mumbo jumbo, but one is a fixed term (loan) and the other is indefinite term (LOC, credit cards etc) your credit score gets better faster if you have both kinds, and treat them both well.

so this way it'll look like I paid off my fixed 6 year term loan in less than a year, and I'll be able to make payments on a new LOC to start building the "other" type of credit. This should help make it nice and easy to get a mortgage when the time comes. It's a win win win. I get lower payments because of better interest rates, credit people think I'm awesome, AND I get a Camaro out of the deal!
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2010 Camaro - 1SS, Black w/ Orange stripes
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