Building credit

[Hondadudeehhhh]

I have a question for you guys who know fianances. Ive been really thinking about getting a new quad lately. I have 3 grand saved up in the bank, vehicle, and a steady job. I was thinking since i have no payments and no need to save that money. I know my parents both have good credit (dont know their credit scores exactly) and i was thinking they could co sign on quad for me. I want to build some credit before college because i want to lease a new truck after my sophomore year. I just dont know how i should go about fianancing a 7k quad. All opinions/experiences are welcome.
Thanks

[Bullitt]

one thing you should look into is getting a line of credit through a bank, rather than finacing through a dealership. Chance are you will have a lower interest rate and more flexiblity with payment options and such. For instantce interest on a line of credit right now here is about 3 percent whereas through yamaha it's 12.5 percent. Also you could then use that line of credit again and again once you have it paid off. Just another option.

[Hondadudeehhhh]

thanks, i was thinking a loan through the bank would be the best way to do it.

[cosborne]

I don't think you should have a problem getting a loan since you are putting 3 grand down. Your parents will probably have to cosign. I would check around to see what the % interest from the dealership, line of credit, and back loan. You also want to keep in mind how long you will be paying on it, 3 years, 5 years, etc. I am 19 years old and I have a line of credit (For business) and a truck loan from the bank. My parents are co-signers. Just a few things to keep in mind.

[SRH]

hey look into financing thru like suzuki for example, because if u wanan pay ahead it comes off the principle, u wont have room in between if u give extra, like with a bank, so for example say you took the 99 a month for 60 months @10% intrest, but you make a payment of 150 that 51 bucks a month would come off the principle, instead of having a portion of the payment going for intrest like with a bank loan... but if you ever do that make sure u can pay it off in the 60 months because after that the intrest rate jumps up to like 21% , and if u made the 99 for 5 years you could be in a ****load of debt towards the end

oh yeah also make sure your bank if u use one is in the credit bureau mines not but they told me they will give me a written letter of credit if i ever need it...

[Plante400]

i did a callateral loan to start building credit...

[bulkdriverlp]

the bank loan or line of credit would be the way. if you want to build credit, apply for a 500$ loan from the bank, get your parents to co-sign. put that money in the bank. make the payments, for example if its 12 payments make 9, then pay it off. just keep raising the amount. in a couple years you will have a credit history to go on, to buy your truck in a couple years. just a thought.

[DeerNuts]

^^^ Good idea, but depending on the area, I can't hardly think of many people that can qualify for 500K even if their parent has a decent credit score. You could still do a smaller amount, applying the same idea, with basically the same results however.

And I don't know how it goes for Canada, but interest rates initially on a line of credit are not 3%! Try more like 15-30. Usually around 15 or so to start, but it jumps every time you make a late payment. Of course, interest accrues to any portion of your unpaid balance, regardless of the fact you made a minimum payment on time.

Credit lines, if given, are small initially, which is good. And they are not easy to get without a co-signer or a previous loan. They don't hand out credit cards like popcorn until you have one. Then prepare for the deluge. And for ex, I got my Citi card because I'm a college student (needed no co-signer). They started me off at 1000 and it was recently extended to 1800.

Credit is great if you don't treat it like the average stupid schmuck does.