Pay it off?

Man there's some people with really bad understanding of credit in here.

If you're financially able to, you should buy everything you get through a credit card and pay it off before it collects interest. Easiest way to build and maintain credit.

 

And with cash back cards you get a nice little bonus at the end of the year

 

Yeah I get 5% back on every purchase I make.

Shit adds up.

 

From what card?

 

Navy Federal CashRewards card

 

We use a Costco visa and are getting a nice little chunk back this year

 

In the last 30 days I have seen some 3.5% for 72 mo. American Bank and Bank of America, that being said, by all means pay off your loan.

 

lol...one of my comments way back said buy everything with cash rather than take corp loans. i consider credit cards cash...maximize rewards and ignore interest
rate since ALWAYS pay off credit cards immediately. credit card interest is dumb money unless an emergency.
and i did not look thru what is becoming a huge thread, but using credit cards to build excellent history is wise for reasons like reduced insurance rates, etc. don't
know if that was mentioned yet. stay over 800 credit score, pay off credit cards immediately and only take a loan when absolutely necessary (like buying a house) and pay that off ASAP.
you'll be wallowing in money eventually. banks will constantly try to get you to take loans...i wonder why?
if starting out and need a loan for a truck, pay it off ASAP and you'll go on to bigger items. interest is lost money so living within means to do this is the smartest way to go.
it is how your means improves rather than stalls with parasites collecting interest off you.

 

The rule that most financial planners go by is to have enough liquid assets to pay for six months of living expenses. Not knowing more about your situation it is impossible to make this call in your case. Your interest rate is very high though in light of the current marketplace, so I would make an effort to accelerate the payoff of your truck loan, while maintaining a said six month reserve.
Once you are beyond the reserve I mentioned you should also consider investing in a conservative, equity mutual fund with a three to five year minimum commitment. This way you should be able to increase the purchasing power of your savings beyond the rate of inflation.
Just my 2 cents!

 

The gains fake and don’t make any sense at all. The Feds pump-n-dump games were behind the last collapse and they conveniently got to turn the blame to other regulations.

stocks are 10 years+ plus game. It’s not something you plan on making money in the short term.

people were saying the same things 13 years ago. Stocks, real estate... just get your low interest credit cards out and start buying investments. Then what happened?

i wouldn’t take out 40k loan to buy stocks. Not paying off a car or house (to invest in stocks) is the same thing.

 

That's how I've done it since I was old enough to get my first credit card. These days I have a premium rewards card with the $120 annual fee waved. I don't pay any banking fees because I don't need things like unlimited debit transactions or balance protection. Having good credit is a great thing, two months ago I saved $180 on my truck insurance by letting them run my credit. As far as the rewards points go I can use them for practically anything. Pay my balance, buy merchandise, buy flights or hotels etc. Last Christmas I bought myself a 43" LG Smart UHD TV, The year before my wife and I used them for two hotel stays while we were out of town.

Free money? Don't mind if I do!

 

Pay it off. The credit score is bullshit.

 

I use Chase Sapphire Preferred for points. Sitting on 85,000pts right now.

 

You aren't getting enough for your interest. Any online bank (I use ally, throw a dart though capital one, discover, etc) is closer to 1.5 percent right now with the recent cut.

That being said, 4.5 percent is high enough that I'd dump it asap if financially responsible to do so. For example if you have only that 11k and no further emergency fund, don't cut into it.

 

Credit card points will never make your net worth 6 figures.

 

Buying a vehicle now days is like buying a house, You have to see where your "investment" will hopefully be down the road. Just keep in mind the the Tacoma is one of very top vehicles when it comes to resale or trade in. If it does take you a few years to pay off your loan your Tacoma is still worth something. My 2012 SR5 was a nice $19,000 down on my new 2018 TRD PRO. Yes, my SR5 was paid off. My PRO is already close to 1/2 paid off.

 

My Tacoma is not an investment. It's a depreciating asset.

I can control the rate of depreciation to an extent by:

Leaving it stock, detailing and doing strict maintenance and not this 10K oil change bullshit

 

Right. The int per day changes with the principle. I appreciate everyone’s input.

 

Agree with u 100%. No vehicle is an “investment”


I have a chase card that gets 1% cash back, what are some better rewards card options?

 

There are some but they're few and far between, I'd prefer my investments in stocks and my vehicles to be a to b machines though. I agree, look at it as a depreciating asset. Investments earn money or potential.

A Tacoma is a good buy because of the depreciation, but it is still one.