Pay for a car in full, or do monthly payments?
I weighed my options to either pay for a car in full, or pay a certain amount and pay off the rest via payments. Which would be better?
31-35, M
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Adogslife · 61-69, M
Technically you can do both. The object of credit is to continue to use it for your advantage. If your cash rich but fail to use credit, your score can drop horribly.
So, the solution is to take a loan, let’s say $20k. The first month pay off the vast majority of the note. Let’s say $18k. Now you’ve safeguarded yourself against interest charges. The remaining $2,000, just make your required monthly payments. You’ll have the note paid off in six months. Your credit will improve because you’ve shown the ability to borrow any pay off a large note. And, your interest paid will be incredibly nominal.
So, the solution is to take a loan, let’s say $20k. The first month pay off the vast majority of the note. Let’s say $18k. Now you’ve safeguarded yourself against interest charges. The remaining $2,000, just make your required monthly payments. You’ll have the note paid off in six months. Your credit will improve because you’ve shown the ability to borrow any pay off a large note. And, your interest paid will be incredibly nominal.
