Loan or no loan?
 

Okay so here's a question for some of you older guys out there. And Black Sunshine.

I have a few things that I need to get done before school starts and before I get into school and can't work like I can now. Here's my dilemma. I have two months before school, and don't have much time to come up with around two grand.

So my mom tells me that I should just take out a loan against my car since it's paid off and in my name. This sounded good because I could use this to establish credit for when I buy my bike next summer and will allow me to slowly pay for what I need now.

Should I do it? Or should I just work my ass off, and sell a bunch of crap to pay for it?

I don't mind working at all, but I'm not sure I'll have the money nor time to make the money for what needs to be done.

What's keeping you from working now? Making 2 grand in 2 months is a realistic goal.

If you need a loan for school just get a student loan with low interest rates. Did you fill out FAFSA?

Depends on one thing. What kind of an interest rate can you get?

You need to start shopping around for the loan before I can give you any advice. If you can get below 8% or so and be able to pay it off in 6 months or less I don't see why it would be an issue.

if it is mods for the stang, the absolutely no. thats how many people get in trouble.

if it is for necessities then its alright. i hate taking out loans. and i have only taken out one loan for my computer that was $2500. i had the money and paid it back in 7 months. just to build credit.

another way to build credit is to get a credit card and only use it for gas. i did that in high school and have a pretty good credit score. i have no idea what my score is since i havent checked in a few years.

and +1 to WNR

Making $2k in 2 months is easy, hell that's easily made with minimum wage ($6.55 hour). Do the best of both worlds, get a loan to build the credit, and pay it off in 2 months with the job.

no loan...sell shit or get a short term job.

That's my whole point. I have a credit card, but I don't use it enough nor do I want to to build credit.

I pay $330 in insurance every month, have to spend at least $100-$150 in gas a month just to get to work and my second job. Making only $9/hr and only getting MAYBE 30 hours a week because our manager who makes our schedule is an idiot makes it hard to pull out two grand, and have the extra to do what I need to.

It's not for parts for the stang, it's just so I can build credit and get what I need done, well done.

I can get a good hit on the loan because my car is paid off and I've been using my credit card for gas for about 3 months now. Probably around 6-7%, which doesn't really matter because it'll be paid off before Christmas if all is well.

having a high credit score dosn't mean much now a days.

A lot of banks look at your past borrowing. If they see that all you have ever borrowed is $100-$200 at a time and you have never borrowed a big amount of money $5,000+, they wont loan you a big loan the day you need it.

a good idea of things to do is lets say your going to buy a computer cash for $2,000. Take out a credit card and do big monthly installments on it, pay it off in 4 payments of $500. Borrowing large amounts of cash and paying it off quick will help you in the long run.

back in 07 when i was purchasing my ATV they didn't approve me, i had a credit score in the 700's, but i had never borrowed $5000+ so they said I was a risky borrower.

taking out a loan for $2,000 isn't going to help you out at all. Don't take the loan try and work 30 hours a week @ 9 and you have a little over 2,100 in 2 months. Taking out a loan for $2,000 would be a waste though, that won't effect your credit much at all. Just use your credit card for purchases as long as you can always pay it off. I hardly ever have cash on me and I charge everything, always pay the bill at the end of the month though.

+1....In assuming you are considering taking out a loan to mod your car...... In my personal opinion I think it's absolutely rediculous and dangerous to take out a loan to "mod" a car. In most cases, if you have to take out a loan to mod a car it means you can't afford it. Modding a car is something people do as a hobby, not as a necessity. Now if you can work a little harder, pay for everything having to do with school, and have some extra cash I say go for it.

Get through school, get a good job that pays well and then buy all the toys you want!

As far as credit I would get a credit card and put gas and little things on it that you know you can pay and go from there. My parents did this for me when I turned 16 and it helped build my credit so I was in a good position after college.

Spinz.....You've had all those fancy cars and as of 07 you never borrowed more than $5,000? You just paid cash for them? If so props to you.

Oh boy, and the rabbit hole continues to grow..

Anyway.. I still don't see any problem with taking a loan out for whatever you need it for. I don't quite understand why it would be ok to take a loan out for anything other than for mods. You're still buying "stuff."

All that matters IMHO is that you can pay it back, what you're buying doesn't make any difference to me.

i would get a bank loan

It is, but my car would be my essential collateral.

You guys can't read obviously, because I said it wasn't for mods. It's only to fix what needs to be fixed before school starts and I get f-cked.

[quote=jjtgiants;415317
Spinz.....You've had all those fancy cars and as of 07 you never borrowed more than $5,000? You just paid cash for them? If so props to you.[/quote]


Other then my F150, nope.


All my cars i financed under my fathers name, theres no way an insurance comapny will ever insure me for a viper.


I pay $113 a month for both my Lexus and Viper, full covg, $500 dect.

And a ATV they wouldn't finance me because its concidered a toy, if i stop payments its hard to repo an ATV, hense as to why its kindof hard to finance an ATV, specially with the economy. So i just went ahead and bought it cash.

Im kindof glad i bought it cash, i ended up flipping it and destroying it, i ended up spending more on it then most people bought their GT's for. I would of still been making payments on a bike I dont have anymore.

http://i8.photobucket.com/albums/a17...cio350z/23.jpg

You say you "have a credit card, but you don't use it enough and that you don't want to build credit", but a few sentences down, you say the loan would be so you can "build credit". :confused: Either way, you are building credit, which is something you need to start doing in your young age.

If you already have a credit card use it. No need to take out a loan and have to pay even more back. Just stop using it for gas and use it for what you need to use it for. If you take out the loan, you'll have to pay for that along with the credit card bill.

I say before you make your decision, that you sell some stuff and see how much money you need after that.

i agree w wnracing
take out a loan for anything as long as you can pay it back

dont no your situation in school but if u feel out the fafsa and your parents are not making hella money its sort of easy to get loans
are u in a private school?
i went to private school but now im in a public school and it is so easy to get loans
i got one today
walked in and said i need more money
she said you didnt take much over the spring and said i will have it in a week

now you know yourself more than anyone
if u take out a loan and can pay it back, when u get the money WILL you pay it back
like pay it OFF
your dilemma

you will figure it out though

I don't want to start using the credit card, because I don't want to be one of those people living paycheck to paycheck. I would do a loan gratefully, but credit cards aren't my deal. They only cause trouble.

I can get much better interest off of a loan. I'm not so willing to just throw my money at rich CEO's so the lowest interest possible is what I want.

I do trust myself. I pay my insurance every six months at a time, always have extra money in the bank for those bad days, and always show up 15-minutes early. I'm not the type to not pay for something, or get too high over my head. Like I said before, my car will be the chunk of my collateral and I would never do anything to risk losing it.

i got that brown paper bag money :)

I have a feeling you don't pay taxes, do you?

I say if you're comfortable taking out a loan and paying it back, then why not. $2,000 isn't much to pay back. Figure if you were able to pay $200 a month, then you'd have it paid off in a year. Just go for it.