advice on a loan loan:yes or no

[Halfwit]

i have always worked and saved up for everything and waited til i had enough money and bought it outright.

i am currently saiving for a project(car) and am about halfway there. i will have enough saved in 3 months to complete.

tell me if im wrong, or if it is good or not. thanks.

1: just save and buy it outright

2: get a 3k loan, and pay it off in 3 months.

3: wait a lil while and get a smaller loan (2k) and pay it off in 2 months.

does getting a loan and paying it off sooner help to earn credit?
should i get a loan or is the credit not worth it.

im not too much worried about interest becasue it will be for a shor t time i was thinking on when i get a bill for the month, paying like 3 times the amount..

help is appreciated,

[civic95]

I would say it depends on your credit. I prefer to save money, and pay with cash, but I already have credit. When I was younger I did finance a car to help build credit.


Do you have credit cards, house, apartment already?

[B16a2 Civic]

i was told if i pay my car loan out too soon that wont be good ( what the loan guy told be but i dunno)
i say get the loan, help to build your credit

[Halfwit]

i was told if i pay my car loan out too soon that wont be good ( what the loan guy told be but i dunno)
i say get the loan, help to build your credit
that is what i am thinking, but i heard it is goodto pay off your loan sooner. or overpay each month.

it just seems like a win-win.
1:car done quicker
2:build credit.

[civic95]

i was told if i pay my car loan out too soon that wont be good ( what the loan guy told be but i dunno)
i say get the loan, help to build your credit

Have to consider the source on that one. His job is to get you to pay intrest as long as he can at the highest rate he can. Pay off early means less money for him.

[Halfwit]

Have to consider the source on that one. His job is to get you to pay intrest as long as he can at the highest rate he can. Pay off early means less money for him.
what is your position on MY matter? yay, or nay?

[B16a2 Civic]

Have to consider the source on that one. His job is to get you to pay intrest as long as he can at the highest rate he can. Pay off early means less money for him.


i thought about that as well, paying the money back faster should be better, i got this loan about 2 years ago tho

[tony]

Creditors want to see a payment history over a certain amount of time..the quicker you pay off your loan the less it helps substanciate your credit score.. I know this from experience.

[Halfwit]

so get the loan, build credit, but pay off slowly? thyus showing that i can successfully make payments over long periods of time, thus earning good credit score? for future cars, house ect?

[B16a2 Civic]

that whats tony said, listen to the man

[ShooterMcGavin]

i'm all about 0% interest loans or like 30/60/90/whatever days same as cash (ones that if u pay off in a certain amt of time, they don't charge u interest). if u have a chance to get one like that, and know u can pay it off, i would. otherwise just save :goodjob:

[Halfwit]

i'm all about 0% interest loans or like 30/60/90/whatever days same as cash (ones that if u pay off in a certain amt of time, they don't charge u interest). if u have a chance to get one like that, and know u can pay it off, i would. otherwise just save :goodjob:
i would be able to pay it off. but im not doin one of those "give us your car title " title pawn or hole in the wall loan places.

[ShooterMcGavin]

^^^oh no i wasn't talkin about that. just saying some places that u buy whatever from will have a financing deal (i bought my rims/tires/suspension from butler tire and they gave me 90 days same as cash, so i paid it off in like 75 days or some shit)

[Halfwit]

^^^oh no i wasn't talkin about that. just saying some places that u buy whatever from will have a financing deal (i bought my rims/tires/suspension from butler tire and they gave me 90 days same as cash, so i paid it off in like 75 days or some shit)
i dont think mainstream performance does that.

all the money is for various parts. so its noot one big purchase. its pistons, rods, turbo kit, injectors, machine shop work, ect.

[ShooterMcGavin]

oh, haha, yeah nice as they i don't think they do that either :D in that case then i'd just wait :goodjob:

[N/A EK]

i would choose #1.

[carrascopa]

i have always worked and saved up for everything and waited til i had enough money and bought it outright.

i am currently saiving for a project(car) and am about halfway there. i will have enough saved in 3 months to complete.

tell me if im wrong, or if it is good or not. thanks.

1: just save and buy it outright

2: get a 3k loan, and pay it off in 3 months.

3: wait a lil while and get a smaller loan (2k) and pay it off in 2 months.

does getting a loan and paying it off sooner help to earn credit?
should i get a loan or is the credit not worth it.

im not too much worried about interest becasue it will be for a shor t time i was thinking on when i get a bill for the month, paying like 3 times the amount..

help is appreciated,

allow me to offer my opinion on this subject.

I personally think credit is overrated. I think that people are too dependant on it.

I would say the point of having good credit is to save money by avoiding high interest rates on accounts which you open.

But than again, paying cash is the cheapest way to save money due to the fact that you are not paying interest on any of your purchases.

I would say the most commonly beneficial aspect of having good credit is to obtain low rates on homes and cars.

But other than that... I believe that financing furniture or electronics regardless of what kind of interst rate u can get is just plane stupid.

Now Me being in the finance industry and owning a mortgage company I have some really strong opinions on how people should utilize their credit.

I think that any purchase under $15,000 should be saved for and paid cash. This is how i live my life. Other than my home and car I have no credit accoutns open. I save and pay cash for everything.

My credit score might not be the highest due to this but. I drive a BMW and i own a 24oosqft house.

My interest rates are both vey low on both. So my point is this. No credit is better IMO than alot of creidt whether it be good or bad.

I think that as long as you have your home and car financing available at good interest rates the rest is BS.

[ShooterMcGavin]

^^^great pts alex, but correct me if i'm wrong......say i want to spend $3k on furniture at rooms to go and have the cash, but we all know they've got their 2-3 yrs no interest thing right? why wouldn't i take them up on the financing, and put the cash away in a CD or whatever and make money off it for the next 3 yrs, at which time i pull the money out, pay off the furniture, and have something extra for myself?

to me, that's another great thing about using credit and having 0% interest or any interest LESS than what u could be earning elsewhere with the money.

[carrascopa]

^^^great pts alex, but correct me if i'm wrong......say i want to spend $3k on furniture at rooms to go and have the cash, but we all know they've got their 2-3 yrs no interest thing right? why wouldn't i take them up on the financing, and put the cash away in a CD or whatever and make money off it for the next 3 yrs, at which time i pull the money out, pay off the furniture, and have something extra for myself?


to me, that's another great thing about using credit and having 0% interest or any interest LESS than what u could be earning elsewhere with the money.

thats an excellent rebuttle, and That is a great idea, but the majority of people are not responsible enough to do this. If you are financially responsible enough to do it go ahead... but me personally, I would rather just buy it than move money around. It insures my property is owned free and clear...

[ShooterMcGavin]

but the majority of people are not responsible enough to do this.

touche


but me personally, I would rather just buy it than move money around. It insures my property is owned free and clear...

nothing wrong w/that at all, my parents have always been that way and i for the most part have inherited some of those tendencies as well.

[civic95]

^^^great pts alex, but correct me if i'm wrong......say i want to spend $3k on furniture at rooms to go and have the cash, but we all know they've got their 2-3 yrs no interest thing right? why wouldn't i take them up on the financing, and put the cash away in a CD or whatever and make money off it for the next 3 yrs, at which time i pull the money out, pay off the furniture, and have something extra for myself?

to me, that's another great thing about using credit and having 0% interest or any interest LESS than what u could be earning elsewhere with the money.

Thats fine as long as your diligent enough not to use that money for anything else. And realize that is still counted as debt, so if you go to get something else (like a car), that'll be considered.

$3000 isn't all that much, but if you do this a few times it adds up.

[carrascopa]

also alot of lending institutions will take credit you didnt even know you had and accept it as a positive credit rating. Using things such as your cell-phone, utilities, car insurance etc... those can be added to your credit report to give you a higher credit rating. There are ways to get good credit when it is needed. Going out and getting personal loans and credit cards just isnt the way IMO

[B18c1Turboed]

The worst thing you can do is get credit to finish a car!
By the time you pay the CC off or the loan you would have paid double for your parts!

My moto if you cant afford to pay for it in cash you dont need it!!

I have the same moto as Alex house and car, thats it!!

[Kevykev]

Great information from all aspects a posted in this thread, Alex Cv95 shazam etc.

Rather than generalizing this topic, let's look @ Halfwit's scenario.

Obtain a loan and manage it responsibly: keep a low balance and service the account for a lenghty period of time. Having an account for two months before paying it off is like saying "i went to college for two months now I want a job."

You must establish and prove credibility to a bank; you must show that you were able to establish and maintain credit in a favorable manner.

Credit can work in his favor, he seems to be responsible when it comes to obtaining an item that he desires.

HALFWIT- What you should also consider is a line of credit from the bank or a simple credit card(s).

Incur a balance then pay it off. Do this cyclically (damn when will I ever use that word again????)

Always make sure that your balance is relatively low compared to your limit. ie Credit limit = $1000 Balance = $200

That can help to incrementally increase your FICO score!

[Julio]

If you can save the money in 3 month, I dont think is worth taking the loan. I rather save the cheese 1st. Using credit for hobbies is not a good idea.

Now, Im not saying taking the loan out is a bad thing. If you are responsible then go for it and keep a low balance as much as you can. It will def help. I know hands on bro.
My Score was in the 400's a year a go due to the fact that I was an idiot and now is in the 600's , still not good. But fair and I will continue to improve this.
I learned late.. but hey.
Just be responsible playa... I think you are young, Build that credit NOW and keep it on track. is good not to rely on credit but is good to have a good history and Fico score when the time comes that you will need it.

[ShooterMcGavin]

^^^:werd:

[Halfwit]

THANKS EVERYONE. i never knew some of you could be so civil, and helpful.

1. i am one of the most responsible youngins around(18)

2: i have two jobs 7-11:30 - 12-9pm. i do not mind working for what i want, and have a large work ethic.

3: i brough t this up becasue I WILL BE ABLE TO PAY OFF IN 3 MONTHS ..so if it can help me earn credit at the same time then why not?

4: 90 days same as cash....no interest if paid back in 3 months? and earn credit? seems win/win.

i do not mind waiting for things as i have done it all my life, and always felt better knowing that the day i have something, it is from hard work and saving., but i also know that having good credit and maintaining it for many years before making a large investment( car, house) will help me greeatly.

please continue, and thank you.

[civic95]

Just remember.... Intrest = :devil:


The only purchase it makes sense on would be a house.

[Halfwit]

interest? i stated i would like to do a 90 days same as cashe where there is no interest = :goodjob: ?

[civic95]

interest? i stated i would like to do a 90 days same as cashe where there is no interest = :goodjob: ?

Yeah I know I'm talking about in the future.

[Halfwit]

Yeah I know I'm talking about in the future.
oh ok. i havnt ever done anything like this, never even had a bank account, jut thought this would be a great start for me to get into it and build some credit.

[TIGERJC]

I would wait and save up, you already have a house that helps your credit. But if you really want the car finished now, I would get a american express blue card. The blue card has no interest for the first 6 months. I would use the card to buy parts and then use my cash to pay for the labor. Then you have 6 months to pay it off and I would close the card after I paid up my dabt in that 6 months time

[u_like_me]

I think that sounds pretty fair. Although they say no interest for 90 days and it sounds easy, depending on how life is treating you at that time it could end up taking longer then 90 days to pay it back. You want to build up your credit and that is good. The better way to build credit if you get a loan like that is to pay it off in less then 90 days. That always makes you look better in the credit world. Then if you want another loan sometime they will be thrilled to give it to you and probaly more then they gave you the first time. Just do the same thing with that loan..... Good Luck...










i have always worked and saved up for everything and waited til i had enough money and bought it outright.

i am currently saiving for a project(car) and am about halfway there. i will have enough saved in 3 months to complete.

tell me if im wrong, or if it is good or not. thanks.

1: just save and buy it outright

2: get a 3k loan, and pay it off in 3 months.

3: wait a lil while and get a smaller loan (2k) and pay it off in 2 months.

does getting a loan and paying it off sooner help to earn credit?
should i get a loan or is the credit not worth it.

im not too much worried about interest becasue it will be for a shor t time i was thinking on when i get a bill for the month, paying like 3 times the amount..

help is appreciated,

[Julio]

THANKS EVERYONE. i never knew some of you could be so civil, and helpful.

1. i am one of the most responsible youngins around(18)

2: i have two jobs 7-11:30 - 12-9pm. i do not mind working for what i want, and have a large work ethic.

3: i brough t this up becasue I WILL BE ABLE TO PAY OFF IN 3 MONTHS ..so if it can help me earn credit at the same time then why not?

4: 90 days same as cash....no interest if paid back in 3 months? and earn credit? seems win/win.

i do not mind waiting for things as i have done it all my life, and always felt better knowing that the day i have something, it is from hard work and saving., but i also know that having good credit and maintaining it for many years before making a large investment( car, house) will help me greeatly.

please continue, and thank you.

when we serious, we are serious :D

[Halfwit]

I think that sounds pretty fair. Although they say no interest for 90 days and it sounds easy, depending on how life is treating you at that time it could end up taking longer then 90 days to pay it back. You want to build up your credit and that is good. The better way to build credit if you get a loan like that is to pay it off in less then 90 days. That always makes you look better in the credit world. Then if you want another loan sometime they will be thrilled to give it to you and probaly more then they gave you the first time. Just do the same thing with that loan..... Good Luck...
when i say i can pay it off, i mean i can pay it off, i have 2 jobs and even if i lose one, i will still be able to pay it off.

so 90 same as cash ftw?

[Halfwit]

The worst thing you can do is get credit to finish a car!
By the time you pay the CC off or the loan you would have paid double for your parts!

My moto if you cant afford to pay for it in cash you dont need it!!

I have the same moto as Alex house and car, thats it!!
ok u totally went against urself there..and how again will i end up paying 6k for a 3k loan?

[ahabion]

sup halfwit

i say yes to a loan for 3-4k (altho that sounds low for bank to loan out... maybe you can tell the back its for a multipurpose loan or something)... make payments of 6-700 per month til the loan is paid off... that should be about 7-9months??

One: you'll be paying significantly more than what your minimum payment will be (looks great on your credit report, when credit agencies look at it, they know you credit worthy... or financially able to make those payments)

Two: you'll have a track record of timely payments over a 7-9 month period (which credit agencies like to see showing you are financially responsible and are reliable when having to pay off credit)

[u_like_me]

That is why I am saying you could pay the loan off early. You will get a really good mark on your credit report. I am not saying you cannot pay it off, I just figured since you are thinking the smart way then this might just help you out a little more with building your credit up...












when i say i can pay it off, i mean i can pay it off, i have 2 jobs and even if i lose one, i will still be able to pay it off.

so 90 same as cash ftw?

[Halfwit]

thanks guys im gonna meet with a bank representative to see my options next saturday.

[ahabion]

thanks guys im gonna meet with a bank representative to see my options next saturday.

dont forget also to get several different numbers on loans also so you can compare rates and terms... they'll compete for your business.

Bank A gives you this much for this percentage.

But you say, "ok, thats great, but i've got a better offer from bank B who is willing to loan me this much for this percentage... can you beat that or match it because i'd really like to do business with you, the bank i know i can trust" **while handing them your written quote from bank B***

[Halfwit]

dont forget also to get several different numbers on loans also so you can compare rates and terms... they'll compete for your business.

Bank A gives you this much for this percentage.

But you say, "ok, thats great, but i've got a better offer from bank B who is willing to loan me this much for this percentage... can you beat that or match it because i'd really like to do business with you, the bank i know i can trust" **while handing them your written quote from bank B***
ill print up fake ones that are like -8% where they actually pay me to borrow money, and ill see what they sya..lirl

[jlaudio88]

id do it

[The Golden Child]

is there a certain time you have to pay off the loan ??

[ALVIN]

I work in the car industry. Paying off a car quickly is up to the person. I have a lady that is paying hers off in less than 90 days. It all depends if you have the money to finance or not.

It is easy to dig yourself into a hole with too many accounts open. I couldnt sell a car because some lady had 7 credit cards open and didnt have a one on her (meaning her bf uses them). HE also pays for them but we cannot prove that so that means her credit score sucks and her debt-income ratio sucks and she wont get approved through anyone.

I know wachovia does a $5k loan no questions asked, at least I believe they do. They used to. like Carassco said, credit is good for certain things but not all. If you are looking to get high credit to buy a car...you must get approved and take delivery on a well priced vehicle. Sometimes we dont approve because the only CAR loans someone has had are 8k therefore not showing that they are responsible to take on say a $44k loan.

Just depends on you and wether you want a bill or not imo.

[ALVIN]

dont forget also to get several different numbers on loans also so you can compare rates and terms... they'll compete for your business.

Bank A gives you this much for this percentage.

But you say, "ok, thats great, but i've got a better offer from bank B who is willing to loan me this much for this percentage... can you beat that or match it because i'd really like to do business with you, the bank i know i can trust" **while handing them your written quote from bank B***

I say this may be hard. I personally know from a car salesman point of view that we will not give you the deal to walk out with. THat is plain stupid. Why? you may ask. Well that is simple. Why would one institution give you a deal and say here go find another one from another place and they'll beat it and we'll lose business. It just doesnt work that way.

Im sure alex wont do that if someone was looking to get a loan..."here have the deal I put out for you and worked my ass off to get you to this payment, interest rate, amount...and go to another mortgage company and get a lower one."

Another thing is that it is easy to tell someone...oh I got this deal from this and this place but I want to do business with you. "well we cant get you the same deal because we offer different rates and such and such so you should have probably stuck with the other company"

[Vteckidd]

Personally,

I would never do a loan on car PERFORMANCE parts. If your only ride or transportation breaks an you dont have the money to fix it, and your DEPENDANT on getting to work with said vehicle that is one thing.

BUt a performance mod should always be paid CASH or with a Credit card at time of completion.

Reason i say this is , its PERFORMANC, NOT NEEDED. Its a hobbie, and a hobbie such as cars has UPS and DOWNS.

let me throw a scenario at you. I may be biased because i know what you want to get done, but follow me anyway. No motor is bullet proof, no motor is perfect. We strive to build the best an most powerfull stuff out there and do a great job doing it. But, the performance market is pushing a car to its limits, and at that limit, shit breaks. Lets say your driving your 350whp car down the road that you borrowed $3000 to get done. Your oil return line breaks on the back of the block, thus emptying your motor of oil. In that process, your motor loses oil pressure, spins a rod bearing an starves the turbo for oil . Shit happens. Now, you have to continue paying back your loan for something that:
1) doesnt run
2) needs more money to fix.

Where had you paid cash OUTRIGHT, you could use the credit NOW to fix the car.

something to think about.

[dwnsthGABOY]

^^^exactly!