I'm on my way

[helpmeout]

to rebuilding my credit. And without a credit card to do so. I posted on the Car after BK board about my accident 2 weeks ago and getting approved for a loan at 9.51%. Well, since it's a 2007 that I got, it's 8.51% I ended up spending more money than I wanted to (still doable, but would have preferred less money) but there was nothing there in my initial price range that met the requirements of the Cap One loan. So, I borrowed more. Fortunately, my totaled car had positive equity so I will be getting money back for that.

The plan is to save it and build my savings even more while I don't have a mortgage or rent payment and pay the car off when I have to move. I can handle the payments now and since it is only a 3 year loan, I should have it mostly paid off by the time I have to move.

Even though I would have preferred to stay debt-free, at least this will help with my credit rating. Which can only help with my getting an apartment when the time comes.

[freedomnow7]

Hey, you're definitely on the right track. I think for me, the trick to becoming debt free is to acquire the smallest amount of debt possible to get the things that I need to get ahead in life (like a car so that I can start my consulting business back up again) and then when I earn more, keep the debt at bay and pay it off. I believe that's called leveraging, which sounds like what you're doing. So congrats to you on a fresh new rebuild!

[backtoschool]

The car loan will help your fico score. Cap One reports to all three bureaus. The car will also help next time you need a new car or when you need a house. The more you can show that you can pay off large amounts of debt without issues, the better it is when you go for a large loan like a mortgage. The key is paying off the debt and not having balances on any cards you get.