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Question By
Smithcraft

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Partial loan or out right purchase?
Hello!

I've been considering a newer car and I think I may have found a sweet deal (maybe too sweet, but that will be determined during an inspection).

I have an "excellent" credit score over 800, so I'm not too worried about the interest rate, or the ding to my score from the credit inquiry. Currently I have nothing to make payments on other than my regular monthly bills.

I can purchase this car outright, and be mostly broke (which is the part of this I don't like). I don't care for this option in case something comes up with the newer car, or the house, or whatever, and I might not be able to handle that without some other sort of loan. I like this option because I hate making payments.

Or I can get a partial short term loan, and still have money in the bank (which appeals to my greedy nature). I like this option because it leaves me money to handle stuff if something happens, as well as the impending holidays. I don't like this option because I hate making payments.

Advice on which of those two one might pick given the circumstances would be appreciated.

However, the question for this section would be: Would taking the hit for the loan against my score be worth it in the long run to get my score higher than it is right now from making the payments for a couple of years?

Thanks for any insight on the mysteries of the credit score!

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Top Contributor
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I will answer it like this, if you want good credit then you are going to have to start having payments.

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