Quote:
Originally Posted by Hawkeye
Now do the math on how much you save if you double your payment each month. It's well worth going a year without as much superfluous spending.
I have every intention of paying it off as early as I can.
edit: I also agree with the above that 675 is a terrible score, it is only "average" because the majority of America is dumb with money. You don't want to be "average". I have a buddy that defaulted on 2 credit cards and went through the whole collections process, and within 4 years with just one secured credit card was able to raise his score to mid 600s. 675 is a poor score IMO.
I agree with you on not wanting to be "average", which is why I am building credit. However I wouldn't call it a terrible score for the simple fact that a 675 will typically allow you to get any one of the main credit products -- home loan, auto loan, personal loan, or credit card. Albeit, you may see high rates, but you will typically get approved. My idea of "terrible credit" is that of someone who can not get debt at all.
Congrats on getting a lower rate refi. I can't believe you got talked into 10% off the bat, did you not have anyone that knows anything about finances go with you to the dealership?
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The salesman pitched it as, "since you've never had a large purchase financed, the bank has to minimize risk for the first 6 months, once you establish timely payments with them, they will lower your rate after that 6 month mark. This sounded reasonable to me at the time, but looking back, was clearly the mark of a good salesman, and poor judgement on my part. I should have insured this was in the contract from the lender.