- Joined
- Apr 11, 2016
- Messages
- 2,247
- Reaction score
- 0
They're probably sleeping. Hopefully I can get their 2 cents tomorrow.Would like to think we had at least one banker here to help you out.
They're probably sleeping. Hopefully I can get their 2 cents tomorrow.Would like to think we had at least one banker here to help you out.
I'll check it out. Thanks, dood.I have done quite a bit of credit research over the last few years and if you want real answers this is not the forum. Check out Myfico.com and check out their "community". Lot of good info there that will get you steered in the right direction. You want a few different types of loans reported and paid on your history to make it better for you to get the best interest rate possible. Revolving, Installment (which is what a car loan is), and your regular credit cards.
There's a few tricks to maximizing your score such as keeping your cards below 10% of the total amount available. I have a $35k card that I use for everything I would buy with cash every month like groceries and gas and I pay on it weekly. This card started out at $8k and with these spending/paying habits has grown to what it is now in a year and a half. With an installment loan initially you take a hit but once you pay the balance down your credit steadily increases. Once you pay the loan off your credit again takes a minor hit but nothing like the initial hit.
I can't explain it all as well as its written over there on those forums. I can say that following the guidelines laid out over there has helped my credit substantially.
My score is in a decent place, but I feel like if I tried to buy a house, they might look at my history and be like 'wtf'? you haven't even financed a car and you wanna get a house?
Why would they do that? Not financing a car is a good thing. Why pay interest on something that depreciates...
Sounds like you're already good TS. Fuck paying interest if you don't have to.
Honestly I probably know less. I don't even know my credit score. Never had a credit card.
One method of building credit without incurring huge interest is paying off ninety-five+ percent of the debt long before due, then keeping a paltry amount still on the hook. Interest on that will be low and tease it out for as long as you want.
But with a car you might want to lease instead of buy. Cars are a terrible value in the arena of finance.
I agree with this strategy;I was just trying to stay within the parameters of the original premise.4) Myth: You must carry a balance on your credit cards to build a credit history.
Fact: Credit cards are great tools for building your credit history, and you don’t need to carry an unpaid balance to do so. Your best strategy is to use your credit cards and pay off the bill in full each month, so you keep your overall debt-to-credit limit ratio low.
Source
Honestly, I don't know how long you would have to do it for your score to improve. But if your score is in the mid 700s, you're already good to go on buying a house.
That is not true. I have a very very good credit rating and I was rejected by some lenders because I had not borrowed a large amount of money prior to the mortgage (got it from paying off my credit cards on time every time etc). I eventually did get it, but some lenders do not just look at your credit score.
Really. I never had that issue when I bought my first house and had never borrowed a lot of money. I did an FHA loan though so maybe that's expected? I don't know. Also, I don't know how anyone could possibly buy their first house these days without the FHA loan. Unless you inherit shitloads of money, who the fuck can save $20,000 or more for the down payment?
Yea it was a strange situation. If i gave you all the detail you would be even more dumbfounded how they would not lend me the money but according to my broker it was due to that lol.
I eventually did get it, but the first 2 lenders rejected me as someone who was in their 30's with a steady job the past5+years and over 750 credit rating.
Was it an FHA loan?
This isn't as black and white as you seem. TS can probably finance a new car for 3% or under. TS can take the cash he has available and invest it the surging stock market and come out ahead.
TS, why the hell do you have that much money just sitting around in checking/savings? You need some cash available but your money should be making you money, not just sitting around.