HI All

Ok so this is my first post, I was referred to this site from another board.

I'm trying to build some credit in hopes to get the best APR on a future car loan and house mortgage.

In the spring of this year I tried to buy a motorcycle with almost half down and was denied at the dealer. I applied at my bank and was given a 3 year loan at 7.9% APR for 3 years.(22 years old, No cosigner and my first time ever borrowing money, I was happy, I had a CC at the time through the bank that I had held for about 3 years and never paid a penny of interest on).

Now I have had the loan only for a short bit of time but in a couple months I could pay it off. I'm wondering if this would be the thing to do? Would it help my credit to pay it off fast or keep it out for a longer making payments?

My current car is 8 years old and has a bit over 100k miles on it and seems to work fine so no real hurry on getting a new vehicle. I was thinking maybe next spring/summer for a new vehicle and putting as much down as I can safely with leaving myself a good financial buffer.

I really don't want to have a bike payment and a vehicle payment at the same time. I would imagine having myself extended on the bike allready might be a bit of a concern for the loan officer. However, I don't want to pay off the bike loan to quick causing my credit history to not grow quick enough.

May I personally extend you a warm welcome to CreditBoards.

As a personal opinion, I believe a 3 year tradeline history on the bike would serve you well.

Here is an option I was just told about that I never knew about.

Roll my bike loan together with a car loan.

The draw back is a higher payment overall and also not having the bike in my name.



Right now I save about 45% of my after tax pay check but it would take a good 2 years to save completely for a car with cash. I can't imagine not having pay increases as well.

Interest rates just keep going up so I will be patient.

Ok I finally broke down and got my credit score.

It is 740 from equifax.

I'll have to read more here to determine how that holds up as far as lending goes.

if that is FICO you're golden (as far as score is concerned)

Ya, its from myfico.com

I have to agree. Don't forget, you'll need money for a down-payment and closing costs if you decide to buy a home;
also, you don't mention if you have other loans that might benefit from being paid off sooner, such as Credit cards with higher interest or even Student Loans.
Just some things to consider.

Nope I don't have any other loans at all.

My only future expense would be a possible wedding. Can't say how much our parents might help?

My gf who I live with has barely anything left on her car/student loans.