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Should I pay down car loan or save for down payment?
Here's my situation: I've been working hard to raise my credit score. I've already gone from 580 to 650 (peaked at 675 until I had to use a CC for a home repair.) My goad is to see myself get above 700 in the near future.

The car I currently own, I financed when I had a low score and in return got a fairly high interest rate. I'm currently about $9000 upside down in the car loan and my payments are VERY high per month. Once I've crossed the 700 credit score mark I'd like to start looking for another vehicle to trade into so that I can lower my monthly payment (plus, I really hate the car I'm currently driving.)

I'm wondering if I should start making extra payments towards the principle of the car loan so that I can reduce the negative equity, or if I should start saving a few thousand dollars to go towards a down payment on another car. In reality, the numbers work out the same when it comes to the car deal, whether I pay $6000 down on the negative equity or pay $6000 as a down payment, either way it won't reduce the total amount of the next car loan.

What I'm really curious about is from the lending bank's perspective. Would either way look better to the lender? Or does it not really matter either way?

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