If you pay two auto loans off and two months later open two

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toemcopper
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If you pay two auto loans off and two months later open two

Postby toemcopper » Tue Mar 08, 2011 3:01 pm

If you pay two auto loans off and two months later open two more does it hurt your credit?
i paid on the first two auto loans for two years and then i paid them off a month apart. i went down to the dealership and i bought me and my wife two more fuel efficient cars on the same day.

stannius
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Re: If you pay two auto loans off and two months later open

Postby stannius » Tue Mar 08, 2011 3:09 pm

Paying off a loan does not hurt your credit. It possibly doesn't have any effect at all. It might have a small positive effect.

Opening a new loan is bad for your credit. In fact just applying is slightly bad. How bad depends on the rest of your report. The hit will be mostly temporary, probably diminishing after the first year, as long as you pay on time.

I would say that the net effect of paying off one loan, then applying for and opening a new one, is negative.

DoingHomework
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Re: If you pay two auto loans off and two months later open

Postby DoingHomework » Tue Mar 08, 2011 4:28 pm

I find this post odd. The OP has posted one post saying he has good enough cash flow and credit to get two car loans and pay off two and a couple of other posts saying he is in so deep that he has had to deal with payday loan companies.

bpgui
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Re: If you pay two auto loans off and two months later open

Postby bpgui » Tue Mar 08, 2011 5:38 pm

DoingHomework wrote:I find this post odd. The OP has posted one post saying he has good enough cash flow and credit to get two car loans and pay off two and a couple of other posts saying he is in so deep that he has had to deal with payday loan companies.

I was wondering the same thing.

Tightwad
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Re: If you pay two auto loans off and two months later open

Postby Tightwad » Tue Mar 08, 2011 7:55 pm

bpgui wrote:
DoingHomework wrote:I find this post odd. The OP has posted one post saying he has good enough cash flow and credit to get two car loans and pay off two and a couple of other posts saying he is in so deep that he has had to deal with payday loan companies.

I was wondering the same thing.

That makes three of us...

stannius
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Re: If you pay two auto loans off and two months later open

Postby stannius » Wed Mar 09, 2011 8:48 am

I dunno... many people think of their car payment as a non-negotiable, unavoidable monthly bill. Maybe the OP took out a payday loan for the purpose of paying the car payment?

AmberMarie
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Re: If you pay two auto loans off and two months later open

Postby AmberMarie » Tue Mar 22, 2011 1:35 pm

Why not just keep the two cars that were paid off? If you are trying to get ahead in the money game- The point of paying things off is so you don't have the payments anymore, or so I thought.
Amber Marie- www.thesmartmoneyclub.com "Start Small, Live Great"


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