Mostly I want to know if I should pay off my husband’s truck before or after I apply for the loan for my new car. Which will look better on our credit reports when we are looking for financing? (It’s going to be bank financing, not through the dealership.)
We have impeccable credit – the only problem with it is our ages, we’re pretty young so not a lot of our accounts have been open more than a couple of years. My neighbor had told me she thought it would be better to pay it off after we financed the new car because it would look good to have an open line of credit. I always thought it would look better to have less debt to pay on each month. Our only other debt is my student loans (also to be paid off shortly) and our mortgage.
Its not a matter of if I’m getting an auto loan. I sold my car today because we’re moving to Alaska for DH’s job and I needed something more practical for the weather up there. My student loans are almost paid off so its not like I need the monthly car payment money to go towards that. I was just wondering what looks better on your credit report – less debt or more lines of credit?
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You have to have excellent credit, no repos, no bankruptcies and yes it wouldnt hurt to pay off hubbys truck first before making any new auto purchases.
If you are smart and want to win in life you will not get a car loan. Never borrow on a car.
what i would personally do is pay off the truck and then what money was being used for the truck payments use that money to help pay the student loans.
Pay off the first loan, and then your debt ratio will be lower and you will qualify for a better rate on the new car!!