Thinking about buying a car. Advise wanted.

[CU Tiger]

Originally Posted by Axxon

That's pretty much my idea with the secured card but with a smaller loan amount. It's a good idea. I'm confused though, it'd only cost 15-20 to borrow 1000???

yeah because you are only gonna keep the loan 3 months....make it a 3 year loan, drop the money in a savings account, in 90 days pay it off...you have only paid 3 months of interest. 1,000 loan at 10% would only be $100 a year/4 = $25 May vary a bit on interest rate. Here is the benefit to this system over a credit card, a credit card will only report 1 or 2x MAX per year on GOOD STANDING...get behind and they will rack you up. And even then if they report 10 times it is still one good account 10x. With the small loans it is 10 separate accounts. The reason for 90 days is banks are only required to report loan findings every 60 days....if it is opened and closed between reports it may never show up.

[Axxon]

Originally Posted by CU Tiger

yeah because you are only gonna keep the loan 3 months....make it a 3 year loan, drop the money in a savings account, in 90 days pay it off...you have only paid 3 months of interest. 1,000 loan at 10% would only be $100 a year/4 = $25 May vary a bit on interest rate. Here is the benefit to this system over a credit card, a credit card will only report 1 or 2x MAX per year on GOOD STANDING...get behind and they will rack you up. And even then if they report 10 times it is still one good account 10x. With the small loans it is 10 separate accounts. The reason for 90 days is banks are only required to report loan findings every 60 days....if it is opened and closed between reports it may never show up.

Ok, that makes sense. Now to find a bank that would loan me that amount. I think I may be better going with a credit union for that one right?

[Barkeep49]

Originally Posted by Axxon

Ok, that makes sense. Now to find a bank that would loan me that amount. I think I may be better going with a credit union for that one right?

Yes.