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514 votes

By 18 years of age, I want a brand new car that's $43,668

Based on what you've said, you shouldn't buy this car, and probably can't buy it anyway. You are saying you earn a total of $1200 a month and have a total of $600 to your name. After four months you ...
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  • 23.8k
302 votes

By 18 years of age, I want a brand new car that's $43,668

Your problem isn't that you have no credit. Your problem is that there is no way on earth how you can ever keep up with the payments for this $43,000 car, and there is no way on earth how you can ...
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  • 20.9k
261 votes

By 18 years of age, I want a brand new car that's $43,668

I did exactly that when I was 2 years older than you. Like you, I made $1200/mo. I was a bit more of a saver but the $3000 down was basically subsidized by my big hearted employer. I remember the ...
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184 votes

Is this person wanting to pay my credit card trying to defraud me?

This is no friend. The clue is that your user name and password aren't required. I've made payments for my mother in law, and the card number, just the 16 digits on front, were enough to send a ...
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141 votes

Asking bank to reduce APR instead of increasing credit limit

The offer of an increased credit limit may be a sign of increased confidence. However from a bank's point of view it is an attempt to get you to spend more and thus make more money from you. ...
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  • 30.3k
139 votes

By 18 years of age, I want a brand new car that's $43,668

BrenBarn's answer is pretty darn good—you would do well to follow his advice. My one point of contention is that I think you should get the car. How long will it take you to save up $43,668? ...
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  • 74.9k
121 votes

Getting $10,000 and have $16,000 balance on two credit cards - How to allocate payments?

If the rate is the same, then clearing one card to zero does have one advantage: getting your grace period back. Generally when you owe money on your credit card, and you make a new purchase that new ...
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109 votes

Pay off Credit Card Debt now or later

You are conflating issues. You made a charge on a credit card. You have the money, earning near-zero interest, but are wondering whether you should use that money to pay a (presumably) high interest ...
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102 votes

Sugar daddy wants me to apply for a credit card so he can link me to his company account. Suspicious or am I being paranoid?

People that have money and want to help others don't need money sent to them in order to do so, and there is no scenario where you opening up a credit card would enable a stranger to help you ...
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  • 63.9k
85 votes

Mom made me cosign a car with her because her credit is bad and now the account has gotten charged off

Your Mom has really messed up your finances. As cosigner you are liable for the whole of the debt on the car. And worse, you have no right to use the car or even stop your Mom using it. Your Mom used ...
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  • 30.3k
78 votes

By 18 years of age, I want a brand new car that's $43,668

Step 1: Start saving like you said you would. You said you could stop spending, and start piling up your paychecks into your bank account. Start doing that now. Step 2: Become an authorized user on ...
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  • 2,260
77 votes
Accepted

How to recover from credit score hit from paying off loan?

First, you need to be aware that the credit score reported by Mint is Equifax Credit Score. Equifax Credit Score, like FICO, Vantagescore, and others, is based on a proprietary formula that is not ...
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75 votes
Accepted

Making a big purchase over $2500. I have the money to cover it. Should I get a loan or just place it on credit?

I would not be concerned about the impact to your credit rating. You already have an excellent credit score, and the temporary change to your utilization will have minimal impact to your score. If ...
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64 votes

Is this person wanting to pay my credit card trying to defraud me?

Your friend has unwittingly got a virus/malware on his computer which has read his contacts list and sent some or all of his contacts (including you) a message, pretending to be from him, asking you ...
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61 votes
Accepted

Should I open a credit card when I turn 18 just to start a credit score?

Yes, it is a very good idea to start your credit history early. It sounds like you have a good understanding of the appropriate use of credit, as a substitute for cash rather than a supplement to ...
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61 votes

Is it possible for me to keep my credit card APR at 0% permanently?

If you pay your statement balance in full before the due date you will never pay a cent in interest no matter what your interest rate is.* In fact, I don't even know what my interest rates are. ...
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  • 48.5k
59 votes
Accepted

The Benefits/Disadvantages of using a credit card

There are a couple of things to consider. First, in order to avoid interest charges you generally just need to pay the statement balance before the statement due date. This is your grace period. ...
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  • 48.5k
57 votes
Accepted

Should I pay cash or prefer a 0% interest loan for home furnishings?

There are several issues with paying for furniture and appliances with 0% credit instead of paying with cash. When you pay with 0% credit, you might be tempted to spend more on something than you ...
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57 votes

By 18 years of age, I want a brand new car that's $43,668

Time for some tough love: "but I desperately need this one and I'm willing to work for it" No. No you don't, and no you aren't. You want to know why I know that? Because your birthday is only ...
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  • 2,600
57 votes
Accepted

Why do credit card issuers offer a grace period?

The grace period exists simply to get more customers. The bank makes money from merchant fees every time you swipe the credit card, and the amount they make is more then it costs them to float that ...
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  • 45.6k
54 votes
Accepted

How can I pull a credit report on my 20-year-old son?

Can you pull a credit report on your adult child, spouse - or even any other adult for that matter? If you have access to things like national ID (Social Security number), can answer security ...
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  • 11.6k
53 votes

Transferring balances left over prepaid credit cards

You can simply use them to pay in a supermarket or anywhere else. Just give them the card and say ‘put 1.23$ on this one please, and the rest I pay cash‘ or whatever. They might be annoyed when you ...
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  • 37k
50 votes
Accepted

Preapproved for mortgage loan but won't tell me interest rates

If you are truly preapproved (not just prequalified) then they are required to supply you with a Good Faith Estimate within 3 days. The interest rate will appear on that document. It's subject to ...
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  • 4,624
49 votes

Paid off $5,000 credit card 7 weeks ago but the money never came out of my checking account

Don't be afraid, but definitely leave the money in your account!!! It's spent money; the other bank just doesn't realize it yet. I'd probably call the CC bank and ask them what account they think the ...
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  • 48.7k
46 votes

A woman on FB offering to pay my debts. Scam?

Yes, this is a scam. Your instinct was correct, and you should not engage with this person further. Scam artists use other people's bank accounts to move money around from scam to scam. Even if you ...
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45 votes
Accepted

5 credit accounts, from $1750 to $4000, all above 90% utilization. Better to pay $500 on all 5, or pay one off completely for credit score?

First, before we talk about anything having to do with the credit score, we need the disclaimer that the exact credit score formulas are proprietary secrets that have not been revealed. Therefore, ...
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44 votes
Accepted

Is it appropriate for a prospective landlord to ask me for my credit report?

Is it normal for realtors/landlords to ask for for the prospective lessee to provide their credit report? Not normal, but should be. This approach saves money (these costs are already baked into ...
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  • 63.9k
44 votes

Sugar daddy wants me to apply for a credit card so he can link me to his company account. Suspicious or am I being paranoid?

There is a very simple test to apply to any question that asks about sugar daddies. Are you having sex with the guy? If not, it's a scam. The odds of any guy just wanting to give you money are ...
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  • 11.1k
43 votes

By 18 years of age, I want a brand new car that's $43,668

Kyle, I recommend you read "Who can truly afford luxury cars?" and then, the linked questions to the right regarding home purchases. $800/mo is what someone pays towards a $160K 30 yr mortgage. With ...
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40 votes

Getting $10,000 and have $16,000 balance on two credit cards - How to allocate payments?

I would take a closer look at each provider. I have one credit-card provider who when there is a large portion of credit available, they frequently offer promotions on balance transfers so you fill ...
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  • 491

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