[Sara]

Originally Posted by V1.47fan

Another factor they use is, total accounts. I only have 3 CC's and that comes up as POOR, less than 10 accounts. I dont wanna have a bunch of credit cards.

Cars and houses count as accounts too.

[Sara]

Originally Posted by DJKapeesh

I hope this is not the first time u have seen this number.

funny how it's easier to keep track of a score number than to do the math on the money it takes to acquire said score.

I was joking. My score is impeccable, basically I borrow "free money"

[DJKapeesh]

Originally Posted by Sara504

I was joking. My score is impeccable, basically I borrow "free money"

No such thing but 2% if on track with inflation is close

[csu87]

Originally Posted by DJKapeesh

It's all relevant to where you start of course. But I doubt you are really that far

I am just under 800, and have paid closer to $10k. 0% financing on a couple new cars, 3% on a used car that was paid within a year, 4.5% on a house for the last 1.5yrs.

And I havent paid any interest on CCs.

[flynscot]

Originally Posted by DJKapeesh

Credit is a dog chasing a tail.

I must borrow money to build a credit score.
I need a credit score to borrow money.

800+ credit score means I have payed 100k or more in interest to get that score. Life should be more than this game we play with the banks

Maybe it is like chasing a tail, but it is the system we have here. Imagine if you had to pay cash for everything - there would be a lot less M3's on the road....

If she got turned down for the re-fi then don't worry about 800's, shoot for the more realistic 600's. That would at least make her loan worthy.

P.S. You don't need to pay 100k or more for an 800 score - wife's is over 800 and she has had the same car for 10 years, and no CC bills. It is just good management of the credit you have and the bills you pay.

[V1.47fan]

Originally Posted by Sara504

Cars and houses count as accounts too.

I think so, if they're not paid for.

[someguywithanm3]

Originally Posted by grieverr

But if that's his fiance and he loves her, and they have a life together, shouldn't he try to help her instead?

Not all of us are born with financial knowledge. Not all of us had financially responsible parents, relatives or friends to learn from. So you may be right that her parents were irresponsible, but that's not her fault.

If she understands that she needs to learn how to manage her money, and is willing to learn how to do so and take the necessary steps, then I think OP should do what he can to help his fiance become more financially responsible.

You're probably right. Just trying to save the guy financial trouble down the line..maybe I'm just a little bitter lol

[DJKapeesh]

Originally Posted by csu87

I am just under 800, and have paid closer to $10k. 0% financing on a couple new cars, 3% on a used car that was paid within a year, 4.5% on a house for the last 1.5yrs.

And I havent paid any interest on CCs.

I love the 0% financing deals.

Essentially you are getting a 2% discount per year for inflation. Who does the math on these promotions when they make them is beyond me.

[Sara]

Originally Posted by V1.47fan

I think so, if they're not paid for.

Yup. You are correct. Mortgages, Car loans, Leases...as well as plastic surgery too.

[ASBSECU E93]

mortgage debt is one of the largest factors to a high CBI....steady on time repayment of mortgage debt that is....

This is where renters are at a disadvantage, and reliant on auto and CC debt to improve CBI scores.

[Delta0311]

Originally Posted by Sara504

Yup. You are correct. Mortgages, Car loans, Leases...as well as plastic surgery too.

That's the nice thing about being a man. You never need makeup, tend to age gracefully, and rarely need plastic surgery. And if you're income is high enough you can look like a complete slob and still be attractive to women.

[Sara]

Originally Posted by Delta0311

That's the nice thing about being a man. You never need makeup, tend to age gracefully, and rarely need plastic surgery. And if you're income is high enough you can look like a complete slob and still be attractive to women.

No woman ever needs makeup.

[Delta0311]

Originally Posted by Sara504

No woman ever needs makeup.

Said no woman, ever...

[zx10guy]

DJKapeesh,

Why are you so insistent on looking at selling the car as the only option? Even with her parents "loaning" her $6k, that's not a deal. It's a loan. You're just pushing around who she needs to pay back. It doesn't erase the fact that she's upside on the car. Now, if her parents said here's $6k you don't have to pay back as long as you sell off the car and get into a cheaper car with lower payments/interest rate or here's $6k to pay down the principle so you can pay off the car sooner, then we have something here.

Plus your statements about how one gets a high credit score shows your lack of understanding of money and money management. I can also say I have not spent anywhere near $100k in interest to get my 800+ credit score either. Plus I use other people's money for free all the time. It's called my credit card which I pay off in full every month. In addition, I have cash rewards so I actually get a small return on what I spend...in essence, I'm being paid back a small sum to use free money. That's something the Dave Ramsey camp doesn't understand and won't grasp.

[DJKapeesh]

Originally Posted by zx10guy

DJKapeesh,

Why are you so insistent on looking at selling the car as the only option? Even with her parents "loaning" her $6k, that's not a deal. It's a loan. You're just pushing around who she needs to pay back. It doesn't erase the fact that she's upside on the car. Now, if her parents said here's $6k you don't have to pay back as long as you sell off the car and get into a cheaper car with lower payments/interest rate or here's $6k to pay down the principle so you can pay off the car sooner, then we have something here.

Plus your statements about how one gets a high credit score shows your lack of understanding of money and money management. I can also say I have not spent anywhere near $100k in interest to get my 800+ credit score either. Plus I use other people's money for free all the time. It's called my credit card which I pay off in full every month. In addition, I have cash rewards so I actually get a small return on what I spend...in essence, I'm being paid back a small sum to use free money. That's something the Dave Ramsey camp doesn't understand and won't grasp.

Yes I understand the 6k only changes the lender and puts her in a worst car, but the problem is not the car but the APR. So in that aspect a 0% 6k loan is a good deal. Also I do listen to some Dave Ramsey but like anything else I take in the information, adjust and decide for my self.

Not to start an argue but how exactly does "my" statement which is from "Dave Ramsey" describe my lack of money management.

As one of the comments states before you borrow money on something which is intended to collect X amount of interest on principle over a set period of time. If you pay back the money before interest and time has passed you can acquire a score with lower money loss. That doesn't change the general equation of what the contract intended interest and period was?

You are simply proving that having the CASH upfront to pay for the item is still the best action. If you take a car loan intended for 7 years and pay it in 1 year you could have waited 1 year and bought it in cash. Why didn't you? Because you wanted the credit score....

[M3Bimmer77]

1st, Get rid of bad debts. And do it ASAP.
2nd start building up the credit again
3rd do not make more bad decisions

Dude my interest on my SUV is 3.5% and I'm crying!!!! Yr telling me that you have 15%!!!!!

Love can kill you but let me tell you that you are already dead And you haven't started marriage.

Once for all, Get rid of that debt!!!!

How are you guys going to buy a house? You should start marriage with ZERO debt. Otherwise it will go down hill. Payoff every single account and start all over. Get some HD credit card, mattress whatever and start building the credit again.

Most probably you will be the co owner for her car. Let her make the payments. That way she doesn't get a 15% rate.

The only condition is that she needs to work on getting her credit score up otherwise you will cancel the co ownership. One year of work pays off really fast.

[shadow191]

You realize that 0% financing isn't always the best deal right? The money for that financing is being paid for by the manufacturer as an incentive. If there's 0% financing, they're also offering a rebate as an alternative. Lots of times the rebate is the better deal even if you have to pay interest on the finance. Always look at total finance cost vs. rebate to see which one is better. 0% isn't really free money.

This is the sort of stuff that happens when they roll financing into the sales transaction, more ways to make money and confuse buyers.

Originally Posted by DJKapeesh

I love the 0% financing deals.

Essentially you are getting a 2% discount per year for inflation. Who does the math on these promotions when they make them is beyond me.

[davis449]

My GF was in a similar circumstance when I met her 4 years ago. Her ex-fiance bought her a car (that he was supposed to pay for, being as they were almost husband and wife) with he as the primary and her as the cosigner (because his credit was shit) on the loan. She didn't understand what she was signing and just scribbled her name onto a loan with 18% interest. He paid the payments while they were together and when they split, you guessed it, he stopped paying the payments. Yes, he's a shitbag for deceiving her and stopping payments without telling her, but she should've known what she was signing (exactly what I told her to her face when shit hit the fan and she was crying, no lie...I don't fuck around and tears don't faze me). She couldn't afford the payment, but at least she had kept up-to-date insurance on it. I ensured she kept doing at least that.

So this is how I broke it down to her and exactly what wouldn't happen under any circumstances:

1.) I wasn't going to pay the back payments out of my savings on the car and then give her money to pay for a car with that kind of interest rate, especially since it wasn't in my name I had no legal claim to what my money would then pay for.
2.) There was no way in hell I was going to sell\trade my nice DD car, that I could afford, (and for a loss) just to overpay (Remember those back payments? Still gotta be paid by someone...) to buy\refinance a car I didn't want to own.

Here's what I told her would happen:

1.) You're going to call the bank and default. Tell them to come and get it. Give them the address it will be at and tell them you are happy to arrange a time they can come and get it and you will hand over the keys.
2.) If they refused that deal, just drive it (insured) until they come and take it away.
3.) Your credit's gonna suck for a long while, but that's the price you will pay for making such a mistake.

Here's what I offered:

1.) Since I no longer really needed my DD, I will go back to driving my other car daily. You walk outside one morning and have no car for work, just grab the keys to my DD and head to work.
2.) We plan to move in together, so here comes a large portion of rent you won't have to pay anymore plus all the other significant costs of living that will be reduced and you will use that money to pay the payments on my DD car. Basically you're going to rent it from me for a while until we figure things out.

We discussed things over the next year and we decided to sell my previous DD and get something a little more affordable for her, here was the arrangement:

1.) Since I love and care about you and, to show you my commitment to you, I will lay down a small down payment and my credit for you to have a car to drive. The car will be financed in my name only, because I will not ever cosign for shit.
2.) You will pay the monthly car payment directly to me. Once said car is paid for in full, I will sell to you for $1, you will pay the taxes, and I will sign it over free and clear.
3.) You leave the relationship, you will have been renting that car from me because when you leave it will be using your own two feet. Then I am free to do with that vehicle as I see fit.

God I love not being married...and yes, my GF is awesome. She just landed a baddass job and has never missed a payment to me in over two years.

OP, your girl sounds like someone who won't learn their lesson like mine did. Get rid of her ass.

[JasonCSU]

Originally Posted by DJKapeesh

You are simply proving that having the CASH upfront to pay for the item is still the best action. If you take a car loan intended for 7 years and pay it in 1 year you could have waited 1 year and bought it in cash. Why didn't you? Because you wanted the credit score....

Paying for an item in cash up front is not always the best action even if you have the means to do so. With the incredibly low rates available on auto loans, many people will still finance a car even if they have the cash because that cash may be invested elsewhere and provide a return greater than the cost of the interest on the loan.

And of course we want the credit score. Improving your score is how you will qualify for those low rates on a car, or better yet, a house. Many other things are being tied to your credit score these days as well, such as insurance rates or even a job with a potential employer.

[csu87]

Originally Posted by shadow191

You realize that 0% financing isn't always the best deal right? The money for that financing is being paid for by the manufacturer as an incentive. If there's 0% financing, they're also offering a rebate as an alternative. Lots of times the rebate is the better deal even if you have to pay interest on the finance. Always look at total finance cost vs. rebate to see which one is better. 0% isn't really free money.

This is the sort of stuff that happens when they roll financing into the sales transaction, more ways to make money and confuse buyers.

This is why I also tell them I am probably paying in cash for the vehicle, then do a switcheroo once the final price is agreed on. Same type of negotiating if you have a trade in or any other type of deal you are going to want to use. Negotiate the car 1st, then the trade in, then the finances.

[zx10guy]

Originally Posted by DJKapeesh

Yes I understand the 6k only changes the lender and puts her in a worst car, but the problem is not the car but the APR. So in that aspect a 0% 6k loan is a good deal. Also I do listen to some Dave Ramsey but like anything else I take in the information, adjust and decide for my self.

Not to start an argue but how exactly does "my" statement which is from "Dave Ramsey" describe my lack of money management.

As one of the comments states before you borrow money on something which is intended to collect X amount of interest on principle over a set period of time. If you pay back the money before interest and time has passed you can acquire a score with lower money loss. That doesn't change the general equation of what the contract intended interest and period was?

You are simply proving that having the CASH upfront to pay for the item is still the best action. If you take a car loan intended for 7 years and pay it in 1 year you could have waited 1 year and bought it in cash. Why didn't you? Because you wanted the credit score....

No it means, there are other things that go on in life. Like actually needing a car or wanting to buy something now versus later. Yes, there are times when I like to indulge in a want and not a need. My motorcycles are an indication of this want. I didn't buy them to do anything with my credit score. My spending habits are not driven primarily by increasing my credit score. There is this thing called the enjoyment factor. I know I have the means to make payments on this want. I chose not to wait till I have money saved up to buy it. I chose to use someone else's money at 1.49% to indulge. I chose to have a 5 year loan knowing full well I would pay it off well ahead of the loan term but it gives me flexibility to pay the minimum payment if I need to.

The only time I really cared about my credit score was when I was doing my paper work for my initial and periodic security clearance paper work, and when I bought my various homes. Other than that, I always know I will be approved for any revolving/consumer credit, auto loan...cocky I know.

ETA: I also bought my old Focus as a daily beater new. I didn't wait to save up the cash to buy it outright because I needed a car now due to my daily beater (a Cavalier Z24) blowing a head gasket. I decided not to put any more money in repairs into the car. And I did pay off this car in a year with zero down.

[DJKapeesh]

Originally Posted by davis449

My GF was in a similar circumstance when I met her 4 years ago. Her ex-fiance bought her a car (that he was supposed to pay for, being as they were almost husband and wife) with he as the primary and her as the cosigner (because his credit was shit) on the loan. She didn't understand what she was signing and just scribbled her name onto a loan with 18% interest. He paid the payments while they were together and when they split, you guessed it, he stopped paying the payments. Yes, he's a shitbag for deceiving her and stopping payments without telling her, but she should've known what she was signing (exactly what I told her to her face when shit hit the fan and she was crying, no lie...I don't fuck around and tears don't faze me). She couldn't afford the payment, but at least she had kept up-to-date insurance on it. I ensured she kept doing at least that.

So this is how I broke it down to her and exactly what wouldn't happen under any circumstances:

1.) I wasn't going to pay the back payments out of my savings on the car and then give her money to pay for a car with that kind of interest rate, especially since it wasn't in my name I had no legal claim to what my money would then pay for.
2.) There was no way in hell I was going to sell\trade my nice DD car, that I could afford, (and for a loss) just to overpay (Remember those back payments? Still gotta be paid by someone...) to buy\refinance a car I didn't want to own.

Here's what I told her would happen:

1.) You're going to call the bank and default. Tell them to come and get it. Give them the address it will be at and tell them you are happy to arrange a time they can come and get it and you will hand over the keys.
2.) If they refused that deal, just drive it (insured) until they come and take it away.
3.) Your credit's gonna suck for a long while, but that's the price you will pay for making such a mistake.

Here's what I offered:

1.) Since I no longer really needed my DD, I will go back to driving my other car daily. You walk outside one morning and have no car for work, just grab the keys to my DD and head to work.
2.) We plan to move in together, so here comes a large portion of rent you won't have to pay anymore plus all the other significant costs of living that will be reduced and you will use that money to pay the payments on my DD car. Basically you're going to rent it from me for a while until we figure things out.

We discussed things over the next year and we decided to sell my previous DD and get something a little more affordable for her, here was the arrangement:

1.) Since I love and care about you and, to show you my commitment to you, I will lay down a small down payment and my credit for you to have a car to drive. The car will be financed in my name only, because I will not ever cosign for shit.
2.) You will pay the monthly car payment directly to me. Once said car is paid for in full, I will sell to you for $1, you will pay the taxes, and I will sign it over free and clear.
3.) You leave the relationship, you will have been renting that car from me because when you leave it will be using your own two feet. Then I am free to do with that vehicle as I see fit.

God I love not being married...and yes, my GF is awesome. She just landed a baddass job and has never missed a payment to me in over two years.

OP, your girl sounds like someone who won't learn their lesson like mine did. Get rid of her ass.

Actually to her defense I was PISSED when I wrote this and she seems to be receptive to learning from mistakes. I have been with her a long time because she puts in the time and effort to learn and adapt

Originally Posted by JasonCSU

Paying for an item in cash up front is not always the best action even if you have the means to do so. With the incredibly low rates available on auto loans, many people will still finance a car even if they have the cash because that cash may be invested elsewhere and provide a return greater than the cost of the interest on the loan.

And of course we want the credit score. Improving your score is how you will qualify for those low rates on a car, or better yet, a house. Many other things are being tied to your credit score these days as well, such as insurance rates or even a job with a potential employer.

I was not saying cash is the best way, I was saying you have the cash available or means to paying for the item in the example. Exactly like the example you just made