17k car loan

bmxicle · #1 08-14-2006, 06:32 PM

Well basically i play poker professionally, and i got a 17k car loan to build my CRED'. I have the 17k + alot more money, but i want the money locked into something like a cd or some safe bonds or something. I have significant money in the stock market right now so i don't want to touch that. I have plenty of money to pay off the loan and i really shouldn't worry about it, but i just want to be careful incase things go bad somehow (which they wont, but "what if").

So yeah its a 2 year loan at 2.9%, and i have to pay 760 a month, whats my plan? CD? gic? bonds? or just throw it in an ing account?

LondonBroil · #2 08-14-2006, 10:56 PM

[ QUOTE ]
or just throw it in an ing account?

[/ QUOTE ]

Cubswin · #3 08-15-2006, 12:37 AM

Congrats on the new car. Good score with the 2.9.

If an hour of your time is worth $50 then find a good 9 month or 1 year CD and put half of it and the other half in Emigrant Direct at 5.15%. If $50 is not worth your time, put all of it in Emigrant. Link to good CD rates.

SuperPokerJedi · #4 08-15-2006, 08:10 AM

[ QUOTE ]
Well basically i play poker professionally, and i got a 17k car loan to build my CRED'. ... I have plenty of money to pay off the loan and i really shouldn't worry about it, but i just want to be careful incase things go bad somehow (which they wont, but "what if").

[/ QUOTE ]

Lol, poker players never get the Cred!! I really depends on your Plan - L/T or S/T investment. Layout how long you want to invest for, how much you want to earn before you need it, etc. Then you can ask this question with better perspective!! [img]/images/graemlins/wink.gif[/img]

jakestorm · #5 08-26-2006, 05:59 AM

2.9%!!! great rate. i would not pay that off let it ride its course. like the others said figure out your goals. short term. or long term what rates you want to make 3-5-8-10% etc etc. then you can go from there.

or you can get a gf and she will blow that 17k real fast for you. LOL

prohornblower · #6 08-26-2006, 05:58 PM

What are you worried about building credit for you if you plenty of liquid capital?

You are basically paying the bank $518 over the next two years so that they will jack up your FICO score a bit. I'm not too versed in this, but does this seem sort of silly?

2.9% is a phenomenal rate, though. But still

ace_in_the_hole · #7 08-26-2006, 07:44 PM

[ QUOTE ]

You are basically paying the bank $518 over the next two years so that they will jack up your FICO score a bit. I'm not too versed in this, but does this seem sort of silly?

[/ QUOTE ]
Sounds good to me. [img]/images/graemlins/smile.gif[/img]

jakestorm · #8 08-26-2006, 08:43 PM

well 17k is not plenty of liquid. Last time i checked a house was more expensive than 17k. so it is always smart to improve your credit. which allows you greater abilities to save on interest rates, lower down payments purchase more etc etc. i would pay a hell of a lot more than 518 over 2 years for a better credit score. unless you are 800+ credit score 500 for better credit is an awesome price to pay.

prohornblower · #9 08-26-2006, 09:36 PM

[ QUOTE ]
well 17k is not plenty of liquid. Last time i checked a house was more expensive than 17k.

[/ QUOTE ]

Read his post. He said he has "a lot more" than 17K. and "plenty of money" tied up in funds.

I've just been hearing a lot lately that borrowing (when you can pay cash) to build credit isn't the way to go. I mean, he has no idea how much his FICO will go up. The bank can't tell him. They have their thumbs up their...well, you know.

2.9% is very low. My post is more geared towards standard, higher rate loans. I'm just asking outloud, if going into debt to get a better FICO score (so you can borrow again, later) is the way to go.

kidpokeher · #10 08-27-2006, 12:47 AM

You're definitely better off putting that same $17K in a 2 year CD and collecting the difference in interest. It does help your FICO score to show consistent, timely payments and a car loan that is paid off without problems helps open the door to better rates on housing loans. Getting set up with an auto-debit through your bank or automatic online payment makes things even easier.

Get a rewards credit card and charge up whatever you can each month and pay it off each month. Having an American Express card used to be a big boost on your FICO since they required full payment each month. I don't know if this is still true.