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Posted in Auto Loans
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saturnion

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puchasing a car...withdrawal from my mm account and pay in cash or take out a loan

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Top Contributor
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Interest...

The real thing to look at is interest.   What would be the interest of the loan?   What is the interest that is accruing in your MM account?  All things being equal, that's what you want to look at.  Does the MM account have any kind of "withdrawal penalty"?  Likely, the loan will be at a higher interest rate than the MM account is, which means you would want to pay cash if possible.

Signing up for a loan will inevitably lower your credit score for a few months.  This adds an account to your credit reports, but lowers your "Average Age of Accounts" because of this brand new account.   Keeping up on all of your payments, your score will recover within 5-6 months on average.  

I hope this helps...

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