NT Financial Gurus, Guide me.

[luckyluchiano]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

Yes, getting a loan and paying it off will help your credit.  Your score is based SOLELY on your interaction with debt.  Going back to my last point, you're just paying a "tax" to build your credit score.  If you're willing to finance a car with a premium spent at the end just to have an asset that's worth about 2/3 of the original price then go for it.

Personally, I paid off my student loans and don't have a car payment.  Every month I set aside some money for a newer car once mine is no longer reliable.  No, I don't care for my car very much but it gets me from point A to point B fine and it's the same one I've had since I moved to college 8 years ago.  I'm not really too concerned with my image or credit score either (although it's in the top tier).

Regarding the student loans, even if they aren't accruing interest, there is no feeling like being debt free.  I was in the same situation with my wife's wedding ring.  We got 0% financing for the first year.  Although it wasn't costing us anything extra it was an awesome feeling to have that payment done with!  It's something that you really can't describe and will have to experience for yourself to understand.  Yes, the math may point to investing the money and possibly earning more money, but it's really not worth it once you've been there.

I have no plans on buying a new car, like I said Im looking at a 07-08 Honda Accord.  With Student loans, they just ask you to make payments or do they do somekinda minimum payment stuff?

 

[crcballer55]

Originally Posted by LuckyLuchiano

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

Yes, getting a loan and paying it off will help your credit.  Your score is based SOLELY on your interaction with debt.  Going back to my last point, you're just paying a "tax" to build your credit score.  If you're willing to finance a car with a premium spent at the end just to have an asset that's worth about 2/3 of the original price then go for it.

Personally, I paid off my student loans and don't have a car payment.  Every month I set aside some money for a newer car once mine is no longer reliable.  No, I don't care for my car very much but it gets me from point A to point B fine and it's the same one I've had since I moved to college 8 years ago.  I'm not really too concerned with my image or credit score either (although it's in the top tier).

Regarding the student loans, even if they aren't accruing interest, there is no feeling like being debt free.  I was in the same situation with my wife's wedding ring.  We got 0% financing for the first year.  Although it wasn't costing us anything extra it was an awesome feeling to have that payment done with!  It's something that you really can't describe and will have to experience for yourself to understand.  Yes, the math may point to investing the money and possibly earning more money, but it's really not worth it once you've been there.

I have no plans on buying a new car, like I said Im looking at a 07-08 Honda Accord.  With Student loans, they just ask you to make payments or do they do somekinda minimum payment stuff?

When I say new car, I mean "newer".  I will never buy a NEW car because of the depreciation on it.  I will let someone else who wants the new car smell and image take that hit and I'll take a car with a couple hundred miles left on it once they decide to upgrade again to the next model.

Loans always have a minimum balance due.  Student loans are typically about 1-2% of the loan original balance.  However, the more you pay on it, the less interest you'll pay once you actually do have to have to pay on that when you're out of grad school.  I would recommend reading "The Total Money Makeover" by Dave Ramsey and "Millionaire Next Door" by Thomas Stanley.  They both give basic financial principles that are quite profound and will change your life after you read them.  You will realize why the rich get richer and the poor get poorer.  It won't be for the reasons many people think either.

Good luck!

 

[crcballer55]

Originally Posted by LuckyLuchiano

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

Yes, getting a loan and paying it off will help your credit.  Your score is based SOLELY on your interaction with debt.  Going back to my last point, you're just paying a "tax" to build your credit score.  If you're willing to finance a car with a premium spent at the end just to have an asset that's worth about 2/3 of the original price then go for it.

Personally, I paid off my student loans and don't have a car payment.  Every month I set aside some money for a newer car once mine is no longer reliable.  No, I don't care for my car very much but it gets me from point A to point B fine and it's the same one I've had since I moved to college 8 years ago.  I'm not really too concerned with my image or credit score either (although it's in the top tier).

Regarding the student loans, even if they aren't accruing interest, there is no feeling like being debt free.  I was in the same situation with my wife's wedding ring.  We got 0% financing for the first year.  Although it wasn't costing us anything extra it was an awesome feeling to have that payment done with!  It's something that you really can't describe and will have to experience for yourself to understand.  Yes, the math may point to investing the money and possibly earning more money, but it's really not worth it once you've been there.

I have no plans on buying a new car, like I said Im looking at a 07-08 Honda Accord.  With Student loans, they just ask you to make payments or do they do somekinda minimum payment stuff?

When I say new car, I mean "newer".  I will never buy a NEW car because of the depreciation on it.  I will let someone else who wants the new car smell and image take that hit and I'll take a car with a couple hundred miles left on it once they decide to upgrade again to the next model.

Loans always have a minimum balance due.  Student loans are typically about 1-2% of the loan original balance.  However, the more you pay on it, the less interest you'll pay once you actually do have to have to pay on that when you're out of grad school.  I would recommend reading "The Total Money Makeover" by Dave Ramsey and "Millionaire Next Door" by Thomas Stanley.  They both give basic financial principles that are quite profound and will change your life after you read them.  You will realize why the rich get richer and the poor get poorer.  It won't be for the reasons many people think either.

Good luck!