Scooter Loan Question

wolf39us · Post by **wolf39us** » Tue Apr 30, 2013 4:36 pm

Okay, so some of you know I took out a loan on my new scooter! This was intentional on my part as I do have the means to pay off the bike. My credit could really use some help and I even had to go a couple avenues just to get the loan I have now.

So here are my thoughts, instead of paying too early on the loans (which I hear is off-putting) I was thinking of paying about 60% of the total loan (loan full amount = $3,122) and then leaving the remaining in a checking account whilst auto-paying the remainder. How long should I stretch this out?

Should I stretch it to 18 months? Maybe 12 months?

Any ideas?

PS: No early term fee

Alibally · Post by **Alibally** » Tue Apr 30, 2013 5:20 pm

Depends on what the interest rate is on the loan against the rate you will make in the deposit account. Honda was doing 0% interest on bikes (in the UK) ,so you may as well have the money in your account that theirs. I'm no financial adviser by any stretch of the the imagination. I don't know we're you are based so would be better speaking to someone who is up on finance in your area.

Mel46 · Post by **Mel46** » Tue Apr 30, 2013 5:34 pm

i think it all depends on what you want to accomplish. in order to boost your credit you'd probably have to keep the loan for at least 12 months. After that you need to determine the difference between what your interest rate is on the loan vs the interest on the bank account. Our credit union pays us for using our money in the checki9ng account, so we actually have a small amount of interest coming in all the time. If your main objective is more to improve credit than to balance out the debt vs the profit ratio, I'd consider 12 months as adequate time. If you need to repair credit by borrowing then one time will not do the trick, though it will help.

ben · Post by **ben** » Tue Apr 30, 2013 6:23 pm

Pay off the loan rather than having savings unless the loan is 0%. If you really want to improve your credit rating then just get a credit card and pay off the full amount each month, that way it wont cost you anything.

ben · Post by **ben** » Tue Apr 30, 2013 6:27 pm

Forgot to say, buy everything on your credit card and dont bother with cash if you can. Make sure you pay off the full ammount each month to avoid interest.

uploader · Post by **uploader** » Tue Apr 30, 2013 7:21 pm

Alibally wrote:. Honda was doing 0% interest on bikes (in the UK)

Sadly not the case anymore its now 4.9% APR. But Yamaha is doing 0%

gn2 · Post by **gn2** » Wed May 01, 2013 1:58 am

uploader wrote:[quote="Alibally"Yamaha is doing 0%

Sadly that offer is only for a few 125 models, the only scooter is the Vity which is a pile of crap.

uploader · Post by **uploader** » Wed May 01, 2013 8:48 am

Had my eye on a YBR125 Custom at 0%, I was going to get a daelim daystar but change my mind
Now am after a test ride on a GV125C, I will make my mind up one day LOL

gn2 · Post by **gn2** » Thu May 02, 2013 2:32 am

Get yourself a nice used GN125

you you · Post by **you you** » Thu May 02, 2013 10:05 am

gn2 wrote:Get yourself a nice used GN125

Is that the basis of your user name?

Shoe · Post by **Shoe** » Thu May 02, 2013 11:46 am

Not sure how it works in Europe, but here in the US paying off too quickly does not present a consistent payment history.

My credit has been flawless since the early 80's and I qualify for the lowest interest rate. My truck is at 0%. Free money...

During my PCX purchase at 2.9% they asked for references... LMAO... With what an 840 credit score? For a lousy 3 grand?

Things have tightened with the recent credit crisis, but the right bank will still offer great rates once you've proved yourself credit worthy (at least on this side of the Pond)

Start small, pay it off, make sure payments are on time (be sure those electronic payments reach the facility on time) and go from there. (BTW, some take 5 days to reach the vendor) Like on my boat...

Then there's debt to income ratios. I got turned down on a boat purchase, mostly because my truck (@ 700 some) is payed through my business, yet under my obligation. I could have shown proof that all notes do not come out of my paycheck and resolve that concern.

My bank knows that, but got out of boat loans do to default. They got stuck with many loans that were underwater.

gn2 · Post by **gn2** » Thu May 02, 2013 7:42 pm

you you wrote:Is that the basis of your user name?

No, its a play on the name of the fastest penguin.
Its a Linux thing.

you you · Post by **you you** » Fri May 03, 2013 7:26 am

gn2 wrote:
you you wrote:Is that the basis of your user name?
No, its a play on the name of the fastest penguin.
Its a Linux thing.

Sounds interesting. You must tell me about it some other time.

gn2 · Post by **gn2** » Fri May 03, 2013 7:50 am

OK, let me know when and I'll oblige.

you you · Post by **you you** » Fri May 03, 2013 9:43 am

gn2 wrote:OK, let me know when and I'll oblige.

Are you holding your breath?

gn2 · Post by **gn2** » Fri May 03, 2013 12:21 pm

Big breaths...
Yeth and I'm only thixthteen...

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