Would you pay a high interest rate... - Ask Rich / Money 101

SNK · 10-26-2009, 01:32 PM

Would you pay a high interest rate on a car loan just to establish credit?

And then possibly refinance after a year of paying it?

glass1/2full · 10-26-2009, 01:37 PM

I voted "Consider if no other options".....

Sista!

mpicky · 10-26-2009, 01:51 PM

No. You cannot count on refinancing as an option.

PrOuDaRmYWiFe08 · 10-26-2009, 01:53 PM

I put Consider it. As someone who has had no other option, I would probably do it. Desperate times call for desperate measures. BUT it could very well screw you in the end. Its a risky choice.

Cubgirl · 10-26-2009, 01:54 PM

My DF has no credit and we need a new or newer used car because I have a 2 seater and baby will be here soon. USAA told us to take a higher intrest rate, and refinance in six months. Right now its hard to even get a high intrest loan. We are having issues finding one.

TheBryTree · 10-26-2009, 02:07 PM

If you have utility bills in your name, that will establish credit. You might not be able to refinance in the future however. I'd only do it if there really were no other option

SNK · 10-26-2009, 02:15 PM

Originally Posted by Cubgirl

My DF has no credit and we need a new or newer used car because I have a 2 seater and baby will be here soon. USAA told us to take a higher intrest rate, and refinance in six months. Right now its hard to even get a high intrest loan. We are having issues finding one.

That's exactly what they told me to do today when I spoke with USAA. They said "take the interest rate that you were given and call us back in 6 months to a year to refinance it"

*skittles* · 10-26-2009, 02:16 PM

no...there are better ways to establish credit than with a high interest car loan. Dh has a car loan with 15% interest rate...I had no idea what he was thinking when he signed that paperwork.

NDNatlGuardGF · 10-26-2009, 03:32 PM

Someone mentioned earlier that having utility bills will help you establish credit. Unfortunately its not the kind of credit that they look for when getting a loan. I have an excellent credit score so I figured I'd get on DB's loan when he refinanced his car because his score kinda sucks, thinking we'd get a better rate. I was then told that while my credit score was very high, I didn't have much of a credit history, so I'd barely help him at all. With me in it, it only dropped by 1%! I only had a car loan for about 6 months because it took $1000 off the price. After that I paid it off with money from my deployment, so thats all the credit history I have besides me credit card which also apparently doesn't count for much.

I would recommend looking for other options first, but if you're needing a better credit history, that may be your only one. If you just need to better your credit score, there are LOTS of other options.

DanielsMelissa · 10-26-2009, 03:39 PM

No the finance people at Honda tried me working for a bank myself I new I could do better an I did took longer but it can be done!!!! Fight it especially of you have a good credit score!!

View Poll Results: Would you pay the high interst rate?
Yes... it will pay off in the future	9	20.93%
No way... I'd rather just not even get a new car	20	46.51%
I'd consider it only if there were no other options	14	32.56%
Other	0	0%
Voters: 43. You may not vote on this poll

10-26-2009, 01:32 PM	#1 (permalink)
SNK Senior Member Join Date: Oct 2008 Location: North Carolina Posts: 3,900 Classifieds: (0) Activity: 69% Longevity: 18%	Would you pay a high interest rate... Would you pay a high interest rate on a car loan just to establish credit? And then possibly refinance after a year of paying it? __________________

10-26-2009, 01:37 PM	#2 (permalink)
glass1/2full Senior Member Join Date: Mar 2008 Location: Midwest Gal Posts: 4,063 Classifieds: (0) Activity: 48% Longevity: 28%	I voted "Consider if no other options"..... Sista! __________________

10-26-2009, 01:51 PM	#3 (permalink)
mpicky Senior Member Join Date: Oct 2007 Posts: 7,250 Classifieds: (3) Activity: 67% Longevity: 36%	No. You cannot count on refinancing as an option. __________________ I worship individuals for their highest possibilities as individuals, and I loathe humanity, for its failures to live up to these possibilities. Visit my Online Store www.melsclay.etsy.com

10-26-2009, 01:53 PM	#4 (permalink)
PrOuDaRmYWiFe08 Currently surviving Deployment # 1 Join Date: May 2008 Location: Me: Back in Texas, My love: Hell which is Afghanistan Posts: 1,741 Classifieds: (0) Activity: 34% Longevity: 25%	I put Consider it. As someone who has had no other option, I would probably do it. Desperate times call for desperate measures. BUT it could very well screw you in the end. Its a risky choice. __________________

About Us

MilitarySOS Shortcuts

MilitarySOS Help

About MilitarySOS

10-26-2009, 01:54 PM	#5 (permalink)
Cubgirl Senior Member Join Date: Mar 2009 Location: Me:BFE Iowa/Him:Iraq Posts: 1,053 Classifieds: (0) Activity: 56% Longevity: 12%	My DF has no credit and we need a new or newer used car because I have a 2 seater and baby will be here soon. USAA told us to take a higher intrest rate, and refinance in six months. Right now its hard to even get a high intrest loan. We are having issues finding one. __________________

10-26-2009, 02:07 PM	#6 (permalink)
TheBryTree Senior Member Join Date: Sep 2007 Location: here and there Posts: 23,022 Blog Entries: 1 Classifieds: (0) Activity: 81% Longevity: 37%	If you have utility bills in your name, that will establish credit. You might not be able to refinance in the future however. I'd only do it if there really were no other option

10-26-2009, 02:16 PM	#8 (permalink)
skittles MilitarySOS Jewel Join Date: Mar 2009 Location: Savannah, GA Posts: 2,506 Classifieds: (0) Activity: 92% Longevity: 11%	no...there are better ways to establish credit than with a high interest car loan. Dh has a car loan with 15% interest rate...I had no idea what he was thinking when he signed that paperwork.

10-26-2009, 03:32 PM	#9 (permalink)
NDNatlGuardGF NDNatlGuardGF Join Date: Jan 2009 Location: Me: Grand Forks, ND Him: Afghanistan Posts: 1,528 Classifieds: (0) Activity: 59% Longevity: 14%	Someone mentioned earlier that having utility bills will help you establish credit. Unfortunately its not the kind of credit that they look for when getting a loan. I have an excellent credit score so I figured I'd get on DB's loan when he refinanced his car because his score kinda sucks, thinking we'd get a better rate. I was then told that while my credit score was very high, I didn't have much of a credit history, so I'd barely help him at all. With me in it, it only dropped by 1%! I only had a car loan for about 6 months because it took $1000 off the price. After that I paid it off with money from my deployment, so thats all the credit history I have besides me credit card which also apparently doesn't count for much. I would recommend looking for other options first, but if you're needing a better credit history, that may be your only one. If you just need to better your credit score, there are LOTS of other options. __________________ DB: "Everything in the world makes no sense to me without you." DB: "The best time of my life has been loving you..."

10-26-2009, 03:39 PM	#10 (permalink)
DanielsMelissa Senior Member Join Date: Feb 2009 Location: Him: Gainesville (Gatorsville), FL Me: South FL Posts: 2,395 Classifieds: (0) Activity: 77% Longevity: 12%	No the finance people at Honda tried me working for a bank myself I new I could do better an I did took longer but it can be done!!!! Fight it especially of you have a good credit score!! __________________ DB: "Hey baby I miss you! I left my heart with you in broward and I stole your and took it to Gainesville!"