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Discussion Starter #1
im gonna get a wrx by the end of oct. now i owed 4,000 in credit cards, and im gonna have 5gs by the end of this month,my credit is ok.
now my question is what would be better,as far as my chances being better for getting aproved for the wrx...

A.payoff all the 4gs in credit card debts and put 1g down towards the car
B.payoff 2gs in credit car debts and put 3gs down towards the wrx
 

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Pay off the credit cards. Why would you want high interests rates on what you owe? At least the car will have about a maximum 6% interest with avg. credit scores rather than over 10% on credit cards. Just my $0.02 Good luck!
 

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Yes, pay off the debt owed.

Besides the interest you will save when you go to finance the bank will see you are capable of paying off debt. They will see you had a large amount owed and completely paid off vs. 4Gs owed payed off a little, now owes MUCH more. Which would = higher interest and possibly denied financing.
 

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if you are buying the wrx just after the end of this month it won't post on your credit report before you buy your car so don't count on it helping your credit, unless you pay off your CC and wait a month or so, it doesn't all work like clock work and some companies like amex are around 1 month behind in reporting, so you decide, I agree though, pay off cc's is usually the best idea, just wanted to let you know it won't help your credit unless you wait a little bit
 

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Discussion Starter #6
STiDriven said:
Yes, pay off the debt owed.

Besides the interest you will save when you go to finance the bank will see you are capable of paying off debt. They will see you had a large amount owed and completely paid off vs. 4Gs owed payed off a little, now owes MUCH more. Which would = higher interest and possibly denied financing.
damn your totally right man, i will def pay off all the debt first. thankz,
and ero2 thankz, i wasnt even thinking about the wait time on that, guess i ll have to wait till end of oct maybe early nov make sure all the credit payments have been reported. well i guess i ll have the rex in time for snow :D
 

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True. Pay off the credit cards first. Here's why:

Credit cards work on a 'revolving credit' basis and have no end date as far as payoff. You could technically pay the minimums on the card and NEVER pay them off. Interest is compounded monthly instead off annually, and therefore, even if you have a lower interest rate on your credit cards, or revolving accounts, you'll pay more than a higher interest on a standard loan, because they're compounded annually. And a standard loan has a set ending date. It's complicated, but contact a financial specialist and he/she will explain it.

Good luck.

Tony
 

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Some good advice, here. I concurr...:thumbup:
 
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