Advice on loan

[RagingPanda]

I planned to get a loan to get my CA b/c I cannot wait for it any longer. I know I will make enough money to cover it...but I do not want to wait until I get the money...den get the engine...then prepare it...then swapping it. Just too long of a time period b/c I don't want to do this when fall semester starts. Just wondering if any of you guys can give any advice on getting a loan b/c I've never done this before. My bank is Wachovia and I've opened an account there for couple of months now..my first account ever. Thanks

[SmithSR]

Signature loans(handing you cash/line of credit without asking for any collateral) are a bit hard to come by for younger people with minimal credit history, especially if you consider that you're asking a bank to give you money for something very hard for them to collect if you default. --even though we're not talking about a large sum of cash-- Risk factor is high. Interest rate will be high.

You need a co-signer(mom or dad). If they also use your bank, getting the loan should be gravy.

I would seriously suggest you don't borrow money to buy a new engine. Debt creeps up on you. People usually go from paying aggressively, to paying minimums, and that's when the high interest rate you agreed to really gets your wallet.

[DAEDALUS]

I agree about that last part. No one here can tell you how responsible you are or how much you will earn, but of the millions of people drowning in debt in this country, I bet 99.9% of them had the exact same thoughts going in regarding their future earnings and future ability to pay. I know some of these people personally. Most of them started accumulating debt in college or right after. One person I know is $30k in the hole, which isn't all that much relatively, but that means she's paying over $200/mo in interest alone. Once you're underwater, it's really hard to get back. The important thing is to compare how much you want things now vs. how much you'll want things later. I don't think my coworker will be able to qualify for a home loan for quite a while.

If your parent is willing to co-sign then that's a good sign they believe in you, and they should know better than anyone here.

[Fenvy]

don't ever borrow money unless you are going to use it for investment or a home. You'll know what I meant if you ever go through with it

[RagingPanda]

I suppose you guys are right. I just didn't know it's that big of a problem. I plan to get only 1500 on the loan...which can be easilly pay back. The reason I don't want to tell my parents is that they don't really want to me to be into cars but completely concentrating myself in school. I guess I just have to wait till I get enough money then. thanks

[RagingPanda]

what about federal loan since I'm a college student. I suppose they only let you use it for school purposes huh....sigh

[Nismo_Freak]

what about federal loan since I'm a college student. I suppose they only let you use it for school purposes huh....sigh

Just work for it man... it's the best way in the long run.

You could always work for 2/3rds and borrow say ... $750 or $1000 at most. That'll be a small sum that will allow you to repay quickly and also estabolish some credit as well.

[ceniack]

what about federal loan since I'm a college student. I suppose they only let you use it for school purposes huh....sigh

it is a transportation expense

but seriously, if you don't really need it i would wait, or if you do get a loan, go to a small local bank, you may have a higher interest rate, but if you get in a bind financially, they are probably more likely to work with you.

[rico05]

I am a moron that has totally done my car on student loans. I look at it this way: Student loans (at least mine) are all under or right at 6%. Being that I have very little credit history, even with a co-signer, an outright car loan or financing through a dealer would be considerably higher than that (my mom and I checked) So, deferred payments, low intrest that the government pays till I graduate (well, 2 of em were, the rest I pay I guess) and the low intrest made it look better to me. $15k budget over 1 year really isn't that much for a car.

[rousie13]

I take out small loans and use my credit card all the time, but only when I have the money to pay them off within a month or two. If I don't have the money, I don't borrow. You may ask, why do you take out loans when you have the cash, and the answer to that is to build my credit. I want to have really good credit when I get done with school, so I can buy whatever I want once I start working full time. Sorry for the long rant about my credit history. lol

[JESTER]

American General Finance. They will loan money to anyone. They just keep trying to give me more money. I borrowed like 2500 to pay off my last bike I totalled, and they keep trying to give my a $10,000 loan. Speaking of that, I have to go pay them today.

Personally, I would get a loan for it. If that is what you want, do it. Just look at all your options before you sign on the dotted line.Think it through fully. But if you dont get the stuff you want now while your young you will never get it. Not saying deffinetly go in debt over it, but possibly.

And yes, I play devils advocate.

[krazy skwerel]

what about federal loan since I'm a college student. I suppose they only let you use it for school purposes huh....sigh

Mr1der bought his car with student loan money. Do you really want to be like Mr1der?

[Mr1der]

what about federal loan since I'm a college student. I suppose they only let you use it for school purposes huh....sigh

uh...

I used mine to buy the T Bird. It's transportation.

I'd save it towards school though honestly, it's less to worry about paying back when it's time to pay back.

[RagingPanda]

Actually....I did bought my car with school's money but it wasn't a loan..it was scholarship money..hahahahhaha. THe reason I want a loan is b/c i can pay it back but I dun want my parents to know, thus I do not have a co-signer....sigh. SO I dun think ppl will give loan out to anyone with little credit history and no co-signer. Beside...i'm workin full time only for the summer so I also don't have a hard income to tell them. Everything is against moi...gayness

[JESTER]

Dude, Like I said, American General or any company like them. They will give money to anyone.

[LiU]

dat... don't be a fool and just save up alil longer, lol I'm in HK right now, leaving HK soonto go to the homeland... gues whosaw some skylines over in HK ha I think I drooled over the guy's skyline lol);] hahaah it's ok I'll lend you some $, Ih ave $9.xx in my acct. aso f right now ;]

[slw240sx]

i got a loan straight out of high school, lost my job defaulted on it. now 4years later i have yet to make any payments since the default , its killing me. my credit score is good , but with that default i cant get a real credit card, nor a car loan unless i put alot of money down and have a co sign.

dont ruin your credit before you establish it, take the summer to work , you should be able to make 1500-3000 in a few months. work pizza delivery or server where you can rake in cash every day and avoid alot of income tax. you have plenty of time to pay taxes when your older. hell i have money and i still dont pay off the thing , i keep dumping money into this car and its not really goin anywhere fast. but i talked to my loan company and they worked out a killer deal to take off that default and set me up with a new line of credit, also that opens me up to get a small loan for a used/new car that im prob goin to buy this fall. im also goin to use it to pay off a year or two of school so i dont have to work as much

[cys19]

sell your sentra