Reply to When people say they "pay cash" for a car...

Forum Index » Money and Finances

Reply to "When people say they "pay cash" for a car..."

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Although we can pay cash, we take out the longest loan available, put both our names on the installment contract, put down a large down payment to make the monthly  payment roughly $250.  With our house paid off, it's nice to keep some type of credit ongoing  in our name.[/quote]

Don’t you have a credit card? That’s enough. Why pay extra on a car when you don’t need to. [/quote]

You need to brush up on how credit scores are calculated.

Credit cards are less valuable debt and fixed term loans are more valuable debt that raises your score.[/quote]

Not having a mortgage isn't a smart way to raise acredit score. Mortgages are cheaper than car loans. 
But regardless, someone wo paid off a house is extremely unlikely to have credit costs impacted by a car loan. [/quote]

Correct.

I was responding to the person who said that credit cards alone are enough to give you a high credit score.[/quote]

It is challenging to be much over 800 without "loans".  I've had only CC for the last 14+ years and score hovers around 780-800.  [/quote]

Why would you care though? I have no idea what my credit score is, for the very reason that I don't have any loans, and have no intention of getting any. The idea of taking on debt purely to improve your credit score strikes me as utter madness, the tail wagging the dog...[/quote]

Oh I don't really care.  I have my credit locked down and haven't taken a loan in over 14 years and likely never will again.  But it's amusing that I have lower credit score when I can afford to pay cash for everything than if I took a loan.  The concept is strange

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics