Loan payments impact on credit score

mikki · 2008-04-06T01:45:53+00:00

I decided to start saving up for a down payment for a house, which Iplan to purchase in 6-8 months. Before making this decision, I put achunk of my savings into my two auto loans, in addition to my regularpayments. For the two auto loans, they list my next payments duesometime in 2009.I was considering not making my regular monthly payments for a fewmonths so that I can save that money towards the down payment of thehouse. I am concerned, however, that this may negatively impact mycredit score because the payments will appear to be erratic and thenstop suddenly (even though no payments are technically due).So, should I continue making the monthly payments to appear lesserratic or save the money for the down payment, so that I canhopefully avoid PMI? :)Thanks for any advice!-------------------------------------- is a moderated newsgroup where Moderators striveto keep the conversations on-topic for financial planning. Other postingguidelines include a request for brevity and another for trimming posts towhich we respond. For all of the other tips and suggestions, see "FROM THEMODERATORS: Posting to ", a weekly post now on theNewsgroup.

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Will Trice 18 years ago

I think you're both right. Shiller's data that Joe shows in the link above excludes new construction. But I believe in the second edition of _Irrational Exuberance_ Shiller gives Bread's number when the median price of all homes, including new construction, is used. You know - new features, bigger house, etc. must be taken into account. Jim was talking about a situation where he would be building so Bread's number might be more useful, but as Bread points out, either growth number makes the point.

-Will

william dot trice at ngc dot com

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joetaxpayer 18 years ago

Funny you bring that up. The median home grew in size from 1400 sq. ft in 1970 to 2330 sq. ft in 2004, a 1.5%/yr increase over a 34 yr period, all due to size. So if BWS's number is correct, it's all accounted for in size increase. The price per square ft would have remained flat. Joe

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Mark Bole 18 years ago

John A. Weeks III wrote: [...]

I for one don't sell any of these things, nor have I done any of them in the last ten years. But I have done each of them once, in a controlled fashion, at some point. And in each instance, I'm pretty sure I paid no commission to anyone.

Coincidentally, I opened my newspaper this morning and read a local article headlined, "Could dumpster meals be the way of the future?" (I will post the link if anyone asks).

Guess which Usenet thread immediately sprang to mind? ;-)

"Freegans, as they're called, eat food that they take out of garbage dumpsters. Yes, you read that right. These people are not homeless, or unemployed, or even broke. They're well educated citizens trying to make a statement about our society's wastefulness by harvesting edibles from the back doors of grocery stores and restaurants."

The connection to financial planning is this: it's not all about the supply side (making money), it's also about the demand side (how you spend it).

-Mark Bole

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Loan payments impact on credit score

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