250Rocket
Well-known member
So my wife and I bought a second car, picking it up and signing the final papers end of this week but I have a little bit of a dilemma. We can pay cash for the car outright but I'm weighing in if paying a little bit of interest under my wife's name will help build her credit.
The strategy would be to take a 36 or 48 month loan, pay off like 80-90% of it within the first week and pay 3-4 years worth of ~$80/mth payments which should be reported to the credit bureaus.
I want to avoid taking a one year loan for the whole amount and paying 5.7% since we'll be paying over $1000 in interest. Alternatively the banks don't even want to lend to us if we don't have at least $7500 of initial business which they will give us at 7+% because the amount is so low.
Considering there are no penalties for paying early, would paying off 80-90% of the principle right away and paying the equivalent of a cell phone bill for 3 or 4 years actually promote credit, do nothing or even hurt it?
The strategy would be to take a 36 or 48 month loan, pay off like 80-90% of it within the first week and pay 3-4 years worth of ~$80/mth payments which should be reported to the credit bureaus.
I want to avoid taking a one year loan for the whole amount and paying 5.7% since we'll be paying over $1000 in interest. Alternatively the banks don't even want to lend to us if we don't have at least $7500 of initial business which they will give us at 7+% because the amount is so low.
Considering there are no penalties for paying early, would paying off 80-90% of the principle right away and paying the equivalent of a cell phone bill for 3 or 4 years actually promote credit, do nothing or even hurt it?