Need solid advice on loan consolidation! Thanks!! (US)
Looking for some good advice on a loan consolidation. I currently owe roughly $2,000 dollars on a capital one credit card with a 20% APR interest. The card has been closed for some time and my payments have always been on time.
I have been working a solid job for years now and I'm looking to get a new car, it will run me roughly $12,000 for the car.
I'm trying to consolidate the current loan into a new one with a lower interest. My credit score is very good, sitting at around 720+. I have no other financial obligations, which is great.
My question is what is the best way to go about this? I really need solid advice, as both my parents are sick and cannot financially help or guide me through the process. I have no fear of losing my current job, and as I said, my credit score is very good. Please help if you can steer me in the right direction!
Thu Jul 16, 2015 4:12 am
oldguy Senior Member
Cash: $ 717.80
Joined: 21 May 2006
That 20% interest is a killer, it is costing you $400/yr just for interest. It's a good lesson, be sure to remember it, NEVER borrow money at 20%. Those rates are toxic and usually only people with bad credit get stuck with toxic loans (cuz they are high risk borrowers)
But you credit is good, you should be able to get revolving credit for about 12%, a 5% car loan, and so on.
With the car, don't go to a place with a sign that says "We sell to anybody", those are the places that will try to get you in a 15% car loan. One thing to know about cars - most financial failures are caused by cars, people buy a car that is way too expensive. So be sure to select a car that matches your needs, not your 'wants'.
Most millionaires drive older cars, there is a reason for that.