Credit score jumped 100 points within 8 months

[666 ReVeNGe 666]

Don't go into debt to buy a car if you can avoid it. It's better to get the best car you can afford with cash and keep it as long as possible.

In general it's better to avoid unnecessary debt. The only long term personal debt that's acceptable is a house.

I rather pay for a car that comes with a warranty and low mileage.
I only owe 3k on my car and can pay that off with 2 paychecks.
I'm not down for older cheaper cars.
I ain't trying pay 10 to 20 racks at once for a car.
With low APR, I don't see the problem with financing a car.

 

[winb83]

I rather pay for a car that comes with a warranty and low mileage.
I only owe 3k on my car and can pay that off with 2 paychecks.
I'm not down for older cheaper cars.
I ain't trying pay 10 to 20 racks at once for a car.
With low APR, I don't see the problem with financing a car.

Low APR is fine when things are great but an emergency loss of income or reduction of income is what makes it a problem. Most people don't have the foresight to realize that.

When you don't finance cars you maintain financial flexibility. If you're sitting on enough cash in the bank to wipe out the debt and not even really touch emergency funds that's a different story.

Most people use financing to buy stuff they don't actually have the money for though. Or to buy stuff that cost more than they would be comfortable paying in cash all at once for. When you buy stuff you have the money for why bother financing?

 

[winb83]

Hey I get it. But understand the concept of credit and debt. You get a good credit score means the banks love you cuz they making money off you. Society has conditioned people to think living in debt is good.

I get it. Low interest rate for things. I'm not saying don't pay your bills. But instead of being used to using credit think about just saving up for things and buying them.

It sounds like your pretty responsible, that's great. But overall the credit score thing is a racket by banks to put people in leveraged situations while profiting off them.

I personally don't finance cars I buy them if I want/need one. The last thing I'm gonna do is have a car payment again. I'm blessed to say I own my home. I got no debt. I have a pretty nice emergency fund imo.

In getting a house use a mortgage broker and I understand good credit means better rates but you can get a house without a credit score. It's called manual underwriting.

Use a credit card and set it up to auto pay on the statement due date to pay in full. Effectively that's not much different than a debit card or cash because if you buy something that's coming out of your bank account on auto pay so you better have the money to cover it.

Anything given month I have about $500 in debt an amount I could erase with money from my checking account. Most of my monthly bills go on a credit card that earns 2% cash back. The debt is usually groceries I earn 6% cash back on and monthly bills like cell phone.

If I buy anything else as soon as it post I pay it. I don't even wait for the statement to hit because one slip up and your credit is fukked. I'm trying to get a mortgage so I stay on top of that.

 

[666 ReVeNGe 666]

Low APR is fine when things are great but an emergency loss of income or reduction of income is what makes it a problem. Most people don't have the foresight to realize that.

When you don't finance cars you maintain financial flexibility. If you're sitting on enough cash in the bank to wipe out the debt and not even really touch emergency funds that's a different story.

Most people use financing to buy stuff they don't actually have the money for though. Or to buy stuff that cost more than they would be comfortable paying in cash all at once for. When you buy stuff you have the money for why bother financing?

Lol
I have a safety net for issues like job kiss etc.
My note is very low so I'm able to pay it a year in advance if I needed to
Most of America can I buy a car outright so I understand what you're saying but it doesn't make sense because most of Americans cannot even do that.
I could pay off my car with 2 checks but I'm not rushing it cause the Apr is super low.
My note is 205 a month. Insurance is 65.

I'm in a good space.

And nikkas lose jobs every day but

That's what emergency savings are for

 

[Malik1time]

Alot of gems here

 

[Thijj]

Don't go into debt to buy a car if you can avoid it. It's better to get the best car you can afford with cash and keep it as long as possible.

In general it's better to avoid unnecessary debt. The only long term personal debt that's acceptable is a house.

Not true.

If you have 20gs and you can get a loan from 0 - 2%, you have to factor in whether or not you'll make more from your capital investing it--which you absolutely can beat a 2% APR debt with even just a well performing robo index fund--than you would lose financing over the course of a loan. There's always the time value of money. And if you saved that much to buy a car, and have great credit, blowing all that capital on a depreciating asset is taking an L.

If you're pushing a 750+ Fico it makes more sense to finance.

The whole concept of being scared to finance and use credit is what got nikkas taking losses out here

 

[Truefan31]

Not true.

If you have 20gs and you can get a loan from 0 - 2%, you have to factor in whether or not you'll make more from your capital investing it--which you absolutely can beat a 2% APR debt with even just a well performing robo index fund--than you would lose financing over the course of a loan. There's always the time value of money. And if you saved that much to buy a car, and have great credit, blowing all that capital on a depreciating asset is taking an L.

If you're pushing a 750+ Fico it makes more sense to finance.

The whole concept of being scared to finance and use credit is what got nikkas taking losses out here

We all have our opinions. I don't agree but that doesn't mean it's right or wrong. Just what you feel is good for you.

Takin losses to me is financing a car period. Don't care if it's at zero %. They still gettin money off you through processing fees/taxes&title etc. even the price you pay you know they gettin money off you. But on top of that it's a peace of mind thing. You don't owe anyone anything. I don't buy new cars and when I do buy one I keep it for a pretty long time, as well as do basic maintenance. I have more than enough investments doing pretty well so to me it's not worth the risk of financing and leveraging because the market typically does better than the interest rate on a car.

If I lost my job or something worse I know everything is paid for. My cars, my house, my emergency fund is there. No need to pay off anyone.

But I wouldn't spend 20k on a car anyway. And I think I make decent money, over 100k. Too many good used cars for way less than 20k.

 

[Thijj]

We all have our opinions. I don't agree but that doesn't mean it's right or wrong. Just what you feel is good for you.

Takin losses to me is financing a car period. Don't care if it's at zero %. They still gettin money off you through processing fees/taxes&title etc. even the price you pay you know they gettin money off you. But on top of that it's a peace of mind thing. You don't owe anyone anything. I don't buy new cars and when I do buy one I keep it for a pretty long time, as well as do basic maintenance. I have more than enough investments doing pretty well so to me it's not worth the risk of financing and leveraging because the market typically does better than the interest rate on a car.

If I lost my job or something worse I know everything is paid for. My cars, my house, my emergency fund is there. No need to pay off anyone.

But I wouldn't spend 20k on a car anyway. And I think I make decent money, over 100k. Too many good used cars for way less than 20k.

Daps. I respect it

There's real merit in not financing if not owing anyone anything is your thing

 

[Truefan31]

Daps. I respect it

There's real merit in not financing if not owing anyone anything is your thing

Yeah I been at the other side, I didn't like it. Again it's in what you think is best for you. It's why threads like this are good. Get educated from different people then try to do the best you can. To me I value that peace of mind a lot. Society and the establishment want people to get loans n leverage themselves so they can cake off of it. It's why they love people having a high credit score. Means higher chance they'll get their money from you. shyt is like slavery imo.

I don't even like them big banks. Keep my emergency fund in a credit union n got an online account for misc things, fee free. . Rest is pretty much investments.

 

[Macallik86]

New achievement unlocked

Spoiler

 

[.r.]

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[Pimp]

Credit is bullshyt. My Credit score has been 832 for a long time. I recently paid my car off early and one month after that it dropped to 784...