Viewing a single comment thread. View all comments

AreYouEvenWhite OP t1_je7czlb wrote

Reply to comment by Penguin_Doctor in 2k down on a cheap car or put it towards cc debt? by AreYouEvenWhite

That's what I've been doing. The minimum is $130. I either do $200-400 biweekly. I've only previously done minimum for most of my life, falling in a loop. I picked up books, reading online to make changes to my day to day life to make these improvements. Depression also kept me from caring. Battled that for decades and won on my own last year in Oct 2022. Feb of 2023, I found myself no longer depressed. I see that's very interesting. Once I get there on lower credit limit. I will keep it low if I go over, I will pay it quickly.

Actually, I have a question for you once more. Since my limit is $5000. The car I'm getting is 6k. I have 3.5-4k saved up. Use some of my credit or get a loan? I'm not going this route unless it could be beneficial to my credit report with quick hefty payments.

1

Penguin_Doctor t1_je7dk8g wrote

Are you saying your credit limit is $5000? To maintain a good credit score, your credit utilization should always be under 30%. This will improve your score. Anything higher will start to be detrimental. It's generally favorable to put as much down as you can. Not only for better rates, but lower minimum payments. Of course it depends on many factors.

2

AreYouEvenWhite OP t1_je7dz1f wrote

Gotcha, I'll keep that in mind. Thanks for your help! Im use everything I learned here and work on that credit with focusing on the car later. Have a good one.

1

Penguin_Doctor t1_je7ealy wrote

Absolutely. Also, do your own research as well. A random guy on reddit may not give the best financial advice. I was in your situation not too long ago, even similar debt amounts, and now I'm doing better than I ever have been. Goodluck!

2

AreYouEvenWhite OP t1_je7hen6 wrote

Research has always been my life. Though, hearing others, especially reddit, has always been a big contribution to the knowledge I might've skipped.

I did some subtracting on my debt. Where I'm at now. When I drop $2000. I'll be $300 away from 30%. Next Friday will put me in the safe zone.

I'm glad you're doing better off! Keep it up on your end. We both got this. Believe it or not. I used to be 750+ score. That was years ago.

2