loan advice?

[osnap]

Id like to possibly look into getting a loan, but im not entirely sure that its gonna be possible given my background and desired parameters.

i only want to get like $2k, to get some body work done, and some paint sprayed, basically. I don't need to stretch it over a particularly long time, maybe 6 months to a year TOPS. The thing is, i have very limited credit history - I have deferred student loans, and a credit card that I've only had a little over a month - i did pay off my first bill (~30% of my credit limit) immediately, before it was even due, and I have no current balance. As of Feb 08, before paying that bill, my score was 665.

Anybody know of a way I can get a small loan like this with my limited history? if i could pull it off, itd be a great way to get some much-needed work done quick, and simultaneously boost my credit score by paying it off quickly.

[Vteckidd]

never take out a loan to do modifications to a car or to do body work.

You will be paying interest on something that DEPRECIATES.

Not a wise move

[IndianStig]

never take out a loan to do modifications to a car or to do body work.

You will be paying interest on something that DEPRECIATES.

Not a wise move

do you pay all cash for cars always?

i agree with no loan for the mods part but not the second statement. I'm young and have a lot to learn but I know for a fact I will have car loans. It may be a depreciating asset but it's s smarter way to get into what you want quicker, build a good credit score and have more cash left over at the time to invest in something that will appreciate or make money. I know that situations can change and one day you might not be able to afford the loan and be screwed but I take risks...I'm confident that when I do take out a car loan, I will be in a position that allows me to make he payments with ease and I won't mess up and get the car repoed.


sorry for the thread jack

ps. they will prolly want the title to your car for that loan since your car will be the one getting the benefits! no pay loan, no car. either way, not a wise move man!

[osnap]

never take out a loan to do modifications to a car or to do body work.

You will be paying interest on something that DEPRECIATES.

Not a wise move

I've heard that angle before, but i found it interesting - for example, id say probably the most common loan out there is a car loan, and most cars certainly depreciate with age. My perspective is really more this: I want a credit booster, and a properly repaid loan is a good one way to nudge your score up. I need body work done, and Id love to have it done by summer, so why not use the money for that? Lets face it: If any of us were in the business of making the absolute most sound and sensical financial decisions, none of us would be on IA to begin with - modifying cars is a huge money pit in and of itself.

edit - and its also really not so much a MODIFICATION issue - the car is damaged and needs to be repaired.

regardless, im not one of those super-dense kids that wont hear any opinion other than my own, so please, if my logic is faulty here, or im missing a particularly vital point, please point it out to me.

[IndianStig]

see if you can get a good rate. and make sure you will be able to pay it off no matter what. no chance in risking losing the car over a 2k loan.

[Sammich]

IMO..if you can pay it off in 6months, why not save for six months, or if you wana build your credit..do a secured loan at a credit union with your car as collateral and pay it off in 6months time

[Vteckidd]

you cant seriously be comparing a CAR LOAN to a LOAN to paint a car?

Car Loan at least at the end of the day you OWN something.

Whats this guy going to own, a $2000 body work an paint job thats prob not going to make his car worth much more?

I wasnt referring to the CAR depreciating, i was referring to the sERVICES HES TRYING TO BUY.

Taking out a loan an paying interest for $2000 in body mods is a horrible investment. Just like any mods to a car

Taking out a loan for a swap, HORRIBLE IDEA
Taking out a loan to do body work, HORRIbLE IDEA

if you pay cash for it outright different story. you pay an you are done.

If you charge it to a credit card, eh, still a bad investment but it depends on how much it is.

What if he gets his $2000 loan for paint, and he totals the car 30 days from now. Have fun paying a $2000 loan for something you no longer have for the next 6months to a year

[Sammich]

i feel u...

[Motivation]

Try a personal loan. I got one when I was 17 just to start my credit. I needed no collateral. Even if you do need collateral, I'm sure you can find something. For 1500 it was 85 a month. Yes I had it for 18 months, but if you can pay it off in 6 months, go for it. I went to my bank and sat down with a loan officer, asked about personal loan, 20 minutes later I was done with the loan complete.

[Benefit]

^^ probably need a co-signer

[Motivation]

True, or he could put the title to his car for collateral and not need a co-signer. Depends on how bad he wants it though.

[Vteckidd]

The ****ing retards in this thread make my head hurt.

jesus

-the reverend rupertaker

[Sammich]

^lol i mean dang mike..they(other posters) are trying to help this dude build his credit also (even though he is asking about getting a loan for body work)..personal loan is a good way to do that..

u could take out the loan, throw it in a savings account and dont touch it, and pay off your loan with the 'savings' you have

but personally i agree with mike...save and pay up front

[JennB]

^^ But then you still have to pay interest.

[Sammich]

true...if he's worrying about building credit(which i dont think thats what this thread is about) he could do what i'm doing...get some furniture financed

[osnap]

im not "worrying" about building credit, per se, but thats the primary reason im considering this route rather than just paying straight up over the summer. I just see it as a potential opportunity to kill 2 birds with 1 stone, is all. I dont desperately need the loan or anything, and Im not rushing into it - just exploring it as a possibility to simultaneously get something I want and build credit.

[Paree4g63]

im not "worrying" about building credit, per se, but thats the primary reason im considering this route rather than just paying straight up over the summer. I just see it as a potential opportunity to kill 2 birds with 1 stone, is all. I dont desperately need the loan or anything, and Im not rushing into it - just exploring it as a possibility to simultaneously get something I want and build credit.

I read all the posts on here and in my opinion...
**Apply for a credit card that has 0% interest for 6-12months or higher so you can pay it off faster and save money from the interest eating you up the first 6-12months. I think Discover has those features if you qualify. A 600 credit score is decent but not good enough to get the bigger things in life you'd want individually.

OR

Your current credit cards credit limit also increases depending on your credibility and how you've handled your payments. If you can get your credit limit to above $2k, you can then get your paint and body work done. If you can qualify, apply for a no interest card and do a transfer balance from your old card to your new one. Close the old credit card if you do not want more than one credit card and now you only have one good credit card left with no interest for 6-12months. Sounds good eh?

Another Alternative when you can't qualify for a no interest card or loan is...
***Ask your parents or a relative with good credit to co-sign with you but with them as the main borrower. Have your name under their name if applicable also. If your name can't be authorized under your buddy/family members name, then ask him/her if you can use their name to get a loan. Friends aren't a great idea to ask unless your really close ever since back in the day. Family members are more convenient to ask in these kinds of situations and they'll forgive you if all else fails. If you choose to use their name to help you.. It'll save you time and money and plus, it'll help your buddies/families credit score and yours also if you were already in debt.

I hoped I helped somewhat..
Good Luck