Quote:
Originally Posted by ImportConvert
Congrats!
I did things backwards from that, because I started off with limited credit. I got taken on the car (7.34% for 72mo, but plan on paying it off earlier) in preparation of getting a better rate on a house (much larger principal/longer time financed).
In the long run, it will cost me around $14K to finance the car for the full 72mo, but I bet I save that much or more on the house after paying off the car boosts my desireability to the bank.
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7.34%? Ouch! That is one reason I am glad that I got a credit card at a decently young age (around 18-19) and I was responsible with it. It allowed me to slowly build up my credit as I made all my purchases on it. I also leased a much cheaper car ($200/month) for 4 years before getting the 370z as it made a lot more sense financially considering what insurance on a 350Z would have cost me back then.
I am also glad I did not wait too long after getting the house to get the 370z. In the process of getting the houses I had a crapton of credit checks and stuff ran on me (just to make offers on some houses I had to be approved for their own credit although I didn't have to use them). When I got the 370z my credit score was just over 800 so luckily I was able to get around 3.25% APR. After my credit scores 'caught up' I went down by a good 60-70 points which might have prevented me from getting such a good rate. At over 7% I would definitely try to get that thing paid off ASAP.
Staying in good shape on the loan should help you with your credit score. I am pretty sure mine went up quite from when I first got the lease to the end of the lease.