Originally posted by: geekender
It depends on whether you are wanting to build your credit with the payment history. You can take the money and invest at 4.25 with the HSBC on the hot deals forums. Then at least the spread isn't so great.
Credit history is total BS. I had no credit cards and no debt in my entire life. My credit rating was great and mortgage companies were more than happy to give me a loan on my first house.
If you're paying tax on your savings income then the comparison is even worse. Assuming the 3.8% is before tax then you're probably only getting 3.0%. Compare that to the 4.9% you're paying for the car.
Originally posted by: herrjimbo
maybe i'm misunderstanding here, but, he's paying 4.9% on the car loan and he's earning 3.8% on his savings acct. wouldn't earning be better than paying? i personally would pay off the car loan and as hellman stated, put his monthly payment into his savings acct.
I agree with this option as well.
Money being saved is a hell of alot better than continuously paying a bill, especially if you are in a situation to pay it off. I'd rather have one less bill
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