UTV Loan Lenth

[Welding Teach]

Everything paid off our house, our ranch, all our vehicles ( besides the one we financed to establish credit). We just recently got our first credit card in 15 years and use if for gas and pay it off every month. However, I hear it is not good to pay it off every month as it shows no debt.

For what its worth

I was told once by a lady at the credit union, she got her son a credit card for gas. If the total amount due was $100 she would tell him to pay $95 to show a balance, and it also showed you made a payment on time.

[Twist]

For what its worth

I was told once by a lady at the credit union, she got her son a credit card for gas. If the total amount due was $100 she would tell him to pay $95 to show a balance, and it also showed you made a payment on time.

I did this with our daughter when she started driving, sort of anyway.

I opened a Shell Mastercard account with her as a full user, basically a joint account, but I paid the balance off every month. I wanted to go the MC route in case she was out and needed something, she'd have the ability to pay for it. She knew to not use it for anything unnecessary and handled it well.

I also had her piggy backing on another card that she had no access to and wasn't aware that her name was on it. I would carry a little debt on that one and make monthly payments on it to show consistent payment history. It definitely seemed to help.

When she graduated this past May, her credit scores were 755 across the board with the bureaus. Her FICO score was in the lower 800's as I recall, I don't remember the exact number on that one.

[TX03RUBI]

Admittedly naive question here. Does the credit score actually get dinged for having no debt? My wife and I have been completely debt free for years (except mortgage) and our scores are high (low to mid 800's) and have remained that high ever since. I thought the main credit score affecter was the debt to credit ration. As long as we don't cancel cards and pay off in full every month, our ratio is lo, and our scores are high. Is this not the case?

If you have a mortgage youÂ’re not debt free, and the mortgage will maintain your credit.

[TX03RUBI]

I financed my Can Am at 6.1% for 60 months. I paid it off in less than a year, but I liked having flexibility in the event it was needed. The tiny interest hike cost me maybe $100 over the life of the loan.

[M16]

I don’t borrow money anymore. But when I did I used a local bank. Who didn’t give a **** about your credit score. They went by your financial statement. Find a good locally owned bank and do business with them.

[rut-ro]

I don’t borrow money anymore. But when I did I used a local bank. Who didn’t give a **** about your credit score. They went by your financial statement. Find a good locally owned bank and do business with them.

I will call the bank today.

[Greenheadless]

I financed my Can Am at 6.1% for 60 months. I paid it off in less than a year, but I liked having flexibility in the event it was needed. The tiny interest hike cost me maybe $100 over the life of the loan.

How does something that is 6.1% apr only cost maybe $100 over a 1 year period? Honestly curious.

[TX03RUBI]

How does something that is 6.1% apr only cost maybe $100 over a 1 year period? Honestly curious.

The difference in loan lengths vs apr rate. It was like a 5.9% for a 24 month rate vs 6.1 for 60. I never said the loan cost $100 for the life of the loan. I said the difference in rates.

[Greenheadless]

The difference in loan lengths vs apr rate. It was like a 5.9% for a 24 month rate vs 6.1 for 60. I never said the loan cost $100 for the life of the loan. I said the difference in rates.

Gotcha, that makes sense.

[Txhunter3000]

Kubota has 0% for 24 months, 1.99% for 36months on the RTV-X series.

[CaptainDave]

Not sure if some actually realize this, but if you actively use a credit card and pay it off in full each statement period, that still counts as debt and does impact your credit score (typically in a positive way).

What I'm saying is you are buying on credit. Your Credit card Statement has a monthlly cut-off for a statement period; however, when you are paying that statement balance off in full, you more than likely already are carrying an additional balance for charges incurred after the statement cut-off. Your credit pull will show you have an outstanding balance. Sure, you eliminate the need to pay interest by paying each statement in full, however, you are not elminating the fact you are carrying a rolling debt balance.

[sboudreaux]

^This

[TreyRo]

We financed our last Ranger and it was 2.9 but that was in 2020.

[Austin]

Ok so I will weigh in here with regards to credit score.

The credit bureaus use an algorithm that looks at many things but primarily
1. credit utilization this is the ratio of your balances to available credit
2. payment history primarily weighted towards active open accounts
3. Inquires, collection accounts etc.

So the most important factors to having and maintaining an excellent credit score is length of account history, good payments and low utilization.

For someone striving to truly be debt free the best way to do that and maintain your credit score is to use a credit card and pay it off monthly. You do not have to ever carry a balance just make sure you monitor your utilization ratios.

Since this account remains active it will negate the need to finance purchases occasionally because with that method once the account pays off it does not carry the same value as an open account.

Also in todays regulatory world and the fair lending regulations it is getting harder and harder to make consumer loans that don’t meet an institutions credit matrix regardless of the strength of your balance sheet. It’s easier to do on commercial credits but that too is changing

[SaintBlaise]

Everything paid off our house, our ranch, all our vehicles ( besides the one we financed to establish credit). We just recently got our first credit card in 15 years and use if for gas and pay it off every month. However, I hear it is not good to pay it off every month as it shows no debt.

You might not have any debt, but you have available credit on your credit card that gets baked into the cake. There is also a trap with the credit card, for example you have a card just for gas and miscellaneous monthly’s with a limit of $5,000. If you charge $5,000 per month, you maxed out your credit limit. No way to get perfect credit.