So if I get the minimum car loan, and just pay it off over 2 years, it will cost me around $478 in interest. So, assuming the fact that for like the next 3 or 4 years my credit rating were to remain the same, which would be better for my credit when I try to get a home loan? Is paying almost $500 now (well, over 2 years) to get an auto loans payments/history in my credit report going to benefit me or not?
If it will get me a lower interest rate on a mortgage I’ll be all for it. If it won’t make a difference, then I probably wouldn’t want to spend the extra $500ish. Anyone happen to know? Thanks!
I never had any payments on my current car. It was gifted to me by my parents. (It is 23 years old)
I’ve heard both that having an auto loan can hurt you when you try to get a home loan and that it can help you because you have credit history in multiple areas. (ie. credit cars + loans vs just credit cards) So I’m not really sure which is true or if both are in different circumstances.
Amanda
When we purchased our home three years ago, we had zero credit. The mortgage company supplemented our credit so we could get a home, so within the last three years is where our credit is coming from. With that being said, we don’t have a very long history of credit and our scores are not very high. We are looking to build a home within the next two years, we would LOVE to have it build in the Spring/Summer of 09 but we don’t know if this is feasible and we don’t want to get our hopes up.
We are not expecting a large profit out of our home. We have a great started home in a good location. We are going to be building a 2000 sq ft home on 5 acres. The land is my mother in laws and she has 15 acres and we are getting 5 of them. We have paid her for the land but have not transferred the deed yet as we need to get it surveyed. The land where we are going to build is selling for anywhere from 20-25K an acre, so clearly we have equity in the land.
So my questions are this: Do you think we would qualify for a construction loan?
If not, how can we improve our credit quickly besides making more and extra payments on our monthly bills?
What credit score do you think that banks are looking for with a construction loan?
THANKS IN ADVANCE!!
Jessica
Vera
