that is correct. For example, a mortgage is classified as 'investment debt', as are educational loans, car loans have their own category; and so do CC, which fall under the general 'unsecured loans'. Each one affects your credit rating differently, some positively other negatively.... this article explains it better.... http://moneycentral.msn.com/co...Managedebt/P150813.asp
that is correct. For example, a mortgage is classified as 'investment debt', as are educational loans, car loans have their own category; and so do CC, which fall under the general 'unsecured loans'. Each one affects your credit rating differently, some positively other negatively.... this article explains it better.... http://moneycentral.msn.com/co...Managedebt/P150813.asp
That was a good article. It didn't really answer my question though. The closest it came to explaining what I am looking for is this:
That statement brings forth the question of what qualifies as "personal debt". Mainly, I want to find out if car loans and 0% APR credit cards qualify as personal debt or not.
Also, I want to learn if the scenario where I have debt on 0% APR credit cards and I always make my payments on time will result in positive or negative effects to my credit score?
That statement brings forth the question of what qualifies as "personal debt". Mainly, I want to find out if car loans and 0% APR credit cards qualify as personal debt or not.
Also, I want to learn if the scenario where I have debt on 0% APR credit cards and I always make my payments on time will result in positive or negative effects to my credit score?
To my knowledge, CC do count as personal debt.
As for the other question, its a two-sided answer. One side, yes the regular, on time, more than minimum payment will positively affect your credit score. The other side, if that debt you are paying on exceeds that 36%, then it adversely affects your score. So it is possible that those forces cancel each other out.
A poster above saw his score increase by 100 points most likely because he was making regular payments and the total percentage went down, a doubly positive behavior.
I used nelnet to consolidate my loans. Nelnet was great (this was in 2004).
If I could go back in time, I would NOT have paid off my loans quickly (I had 20K in loans, I paid it off in a year). My rate was 3.12%
If I could go back in time, I would NOT have paid off my loans quickly (I had 20K in loans, I paid it off in a year). My rate was 3.12%
You are right. I gues to say 'best place' is wrong. I am sure there are better places. But it is avery common place to consolidate. And Sallie Mae does do the Federal loan consolidation program so I would assume (maybe I shouldn't) that they follow certain guidlines to do so.
Please explain further when you say .25 off for ontime payment. and .25 off for ACH transfer. .25 off what your interest rate? your principle? More info please I am intrigued.
Ns1
No Lifer
- Jun 17, 2001
- 55,420
- 1,600
- 126
<div class="FTQUOTE"><begin quote>Originally posted by: jdini76
<div class="FTQUOTE"><begin quote>Originally posted by: NeuroSynapsis
<div class="FTQUOTE"><begin quote>Originally posted by: jdini76
<div class="FTQUOTE"><begin quote>Originally posted by: mobiblu
federal. Does it make any difference?</end quote></div>
Yes. Federal will have a significant lower interest rate. The best and most common place to consolidate your federal loans is Sallie Mae.</end quote></div>
absolutely do NOT do your consolidation with sallie mae! There are SO MANY other competitors offering way better programs ie no funding fee, .25 off for 2 years of ontime payments, .25 off for ACH transfers, etc. Sallie Mae won't give you sht!
If you consolidate federal you can apply for the federal loan consolidation program (whatever it's called) and get locked in at a fixed rate (whatever it may be now). If you have a private loan then your only option is to get ANOTHER private loan w/ longer terms and possibly a lower interest rate. However this is tied to your credit and can vary greatly.</end quote></div>
You are right. I gues to say 'best place' is wrong. I am sure there are better places. But it is avery common place to consolidate. And Sallie Mae does do the Federal loan consolidation program so I would assume (maybe I shouldn't) that they follow certain guidlines to do so.
Please explain further when you say .25 off for ontime payment. and .25 off for ACH transfer. .25 off what your interest rate? your principle? More info please I am intrigued.</end quote></div>
You should be as sallie mae won't give you sht. With some of the other lending providers, AFAIK you get a .25 interest reduction for automatic withdrawls straight from checking, and another .25 after 2-3 years of ontime payments.
sallie mae may/may not charge you a loan origination fee. This can also be a huge area for savings if you look around. FW has a great thread on loan consolidation
<div class="FTQUOTE"><begin quote>Originally posted by: NeuroSynapsis
<div class="FTQUOTE"><begin quote>Originally posted by: jdini76
<div class="FTQUOTE"><begin quote>Originally posted by: mobiblu
federal. Does it make any difference?</end quote></div>
Yes. Federal will have a significant lower interest rate. The best and most common place to consolidate your federal loans is Sallie Mae.</end quote></div>
absolutely do NOT do your consolidation with sallie mae! There are SO MANY other competitors offering way better programs ie no funding fee, .25 off for 2 years of ontime payments, .25 off for ACH transfers, etc. Sallie Mae won't give you sht!
If you consolidate federal you can apply for the federal loan consolidation program (whatever it's called) and get locked in at a fixed rate (whatever it may be now). If you have a private loan then your only option is to get ANOTHER private loan w/ longer terms and possibly a lower interest rate. However this is tied to your credit and can vary greatly.</end quote></div>
You are right. I gues to say 'best place' is wrong. I am sure there are better places. But it is avery common place to consolidate. And Sallie Mae does do the Federal loan consolidation program so I would assume (maybe I shouldn't) that they follow certain guidlines to do so.
Please explain further when you say .25 off for ontime payment. and .25 off for ACH transfer. .25 off what your interest rate? your principle? More info please I am intrigued.</end quote></div>
You should be as sallie mae won't give you sht. With some of the other lending providers, AFAIK you get a .25 interest reduction for automatic withdrawls straight from checking, and another .25 after 2-3 years of ontime payments.
sallie mae may/may not charge you a loan origination fee. This can also be a huge area for savings if you look around. FW has a great thread on loan consolidation
pmoa
Platinum Member
- Dec 24, 2001
- 2,623
- 3
- 81
Go and consolidate, you will save thousands on interest. I am about 60K in debt from school. Sallie Mae will most likely be able to lower interest rates by .25% if you pay 48 months straight. So mine is as low as 2.25% consolidated, better than paying 8% IMO
I am confuse now. I call and talk to one of the bank representative. The impression I got from the whole conversation was basically: consolidation will not give me a lower interest rate. It was lock the rate in at ~7%. It will lower the monthly payment. Something I don't need since I'm paying more than monthly payment. My current interest rate is 7.14%. Did I misinterpret something?
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