Well my thinking was this..
my payment would be around 150.00-180.00 a month on an 18 month plan if I borrowed 2500.00
My collateral would be my Corolla ( if I could pull that off) because it is paid for and its value is around 4500.00-4,800.00 . Almost twice the loan amount. Clear title etc.
September , when my photography works gets into full swing, I was going to pay twice the amount on the loan until December. That should have paid off almost 80% of the loan, leaving a minimal monthly payment of around 50.00 for the remaining life of the loan. Since 99% of places do not want you to pay off a loan early and will penalize you , I dont mind making such small payments .
Because the payment would make a small dent into my monthly income, I would not want to rely completely on what I make to repair the car if anything major happens. And if I have to pay interest on that peace then that is ok.
It may not make perfect financial sense.. because I will be paying on 500 or so that I will not be using.. but.. I would rather have a high cost nest egg, then nothing at all.
but, my credit line will not allow for a loan right now.
My car is paid off , yes.
In fact I have three paid off cars on my credit, 4 paid off credit cards... and hospital bills. Ugh. Oh yeah. Lets not forget Ians repossessed truck.
But yaknow the real kicker? I just learned about?
Toyota financial held the loan for my Corolla.
Some how, some where they said I signed and agreed to an 1100.00 balloon payment. Bull-crap. But, argue with it.. I can not.
So I called Toyota and agreed to a two month extension so that I did not have to come up with that 1100.00.
Paid it off on time, just as planned.
Well.. that extension? Shows up as being three months BEHIND on my car payments.
Guess whos credit is questionable right now huh. X(
Im actually considering just filing for bankruptcy and clearing it all up .
I cant jump into this whole single thing with credit I cant use. I know in a few months everything will even out, and I will be ( hopefully) where I was before , around 610.
But I have no open line of credit any more. Nothing to build on that number and thanks to this so called 'recession' loans are hard to get right now unless you have spotless 800 point credit it seems.