clueless about a loan?

[buck440]

well where to start. i make about $350 a week:ermm: and need a 5-$6000 loan for my soon new truck (cummins) where to begin? i'm 20, perfect credit, know absolutely nothing about getting one so i'm hoping you guys can give me a crash coarse on what to do if i can do, thanks

[matt581yfz450]

Go to the bank and sighn up for a loan. I was 18. now (19) but i got a loan out for a yz250f and it was 4800 bucks all i had to have is my mom to co sighn. u should be good. And i make a little over a 100.00 a week lol. payments are like 121.00 a month

[jesseweaver]

Originally posted by matt581yfz450
Go to the bank and sighn up for a loan. I was 18. now (19) but i got a loan out for a yz250f and it was 4800 bucks all i had to have is my mom to co sighn. u should be good. And i make a little over a 100.00 a week lol. payments are like 121.00 a month

nice thats not bad, thats about as much as i wanna take out this spring to get a bike. i think i might make my monthly payments around 3-400 though

[buck440]

sign up for a loan? how long from when you do that to when you get the $?

[Tommy Warren]

they usually get an answer over night as long as you meet the criteria

[Quad18star]

Go to the bank , speak with a banking officer .. tell them you want a loan. They'll do a credit check .. see if you're high or low risk , which will determine if you need a co-signer or not. If you're approved you'll have the $$ for whatever you buy. If it's a vehicle, the bank will most definately want you to have the vehicle insured.

[buck440]

which brings me to my next ? do i have to get full coverage? or can i just get liability? do they even need to know it's a vehicle i'm getting or is there a way around it for lower insurance sake?

[1fastR]

how do you know you have perfect credit?? if you have no credit history you do not have perfect credit.

if the truck or whatever else you buy has a loan on it, it should have full coverage insurance on it.

if you get a secured loan some times the intrerst rates are lower on them

[Regular_Joe]

If its a vehicle loan, then they place a lien against the title saying they have rights to it until it is full paid off. The loan is secured against the vehicle. If you don't pay they can repossess it.

However you can get a personal loan and buy it that way as well. This would be an unsecured loan since they wouldn't have a lien on the title and there is no collateral if you don't pay. Typically the interest rates on an unsecured personal loan are double or triple what a regular secured loan will be.

On a typical vehicle on a 5 yr loan, the payments are around $18 per $1000 borrowed. So if your truck is $6k, and the loan is 5 yrs, then your monthly payment is about $110 a month.

When the bank has a lien against the truck you will have to have full coverage. Then no matter what the insurance will fix the truck if something happens, and they are guaranteed to have a good truck if they have to repossess it ..... in theory .....

If you have never had a loan you don't have perfect credit.... You have none. lol. Big difference. It's pretty simple, go the bank, talk with a loan officer and apply. They will tell you within a couple ten minutes whether you're approved or not. If you're approved it's usually deposited right into your bank account if you're getting the loan from your bank.

If it's an auto loan you will have to have the title to the vehicle you're borrowing against with you.

[Pipeless416]

Originally posted by Regular_Joe
However you can get a personal loan and buy it that way as well. This would be an unsecured loan since they wouldn't have a lien on the title and there is no collateral if you don't pay. Typically the interest rates on an unsecured personal loan are double or triple what a regular secured loan will be.

its also nearly impossible for somebody his age to be approved for an unsecured loan

[buck440]

thanks for the info so far:)

[jcv400ex]

Why go $6,000 in debt at 19 years old for a Cummins truck that maintence will kill you on? 15 quarts of oil, fuel filters, etc, etc when you're only making $350 a week? Plus you will have to carry full coverage auto insurance. So you're looking at a 3 year loan for $6,000 that amounts to about $195 a month. Plus auto insurance at 19, you're looking at $100 a month. So right off the bat, you have $300 a month going to a vehicle. Not counting the up keep costs associated with owning a vehicle and putting fuel in it. Say it'll cost you $150 a month in fuel to drive around. So now you're up to $450 a month to drive the truck.

Aren't you going to college? If it was me I'd establish my credit with a $2,000 personal loan for $90 a month, buy a ford ranger, carry $50 a month liability insurance and save, save, save!

[IcutMetl]

Smart; jcv400ex, smart man.

[extremeblastr]

$100 a month for full coverage at 19? i want the name of your insurance agent he can have my business anytime, full coverage at the age of 19 is going to run you 250+ a month. its not worth it, buy a beater car/truck drive it til it dies and save every last penny and you can buy that cummins with cash a few years down the road.

[sunco]

When shopping always get the price on what ur buying 1st. never answer the ? how much do u want ur monthly payments to be. always make the deal on the final price. the monthly amount always works out in the end.

if u say I can 400 a month - next thing you know u just got a loan 400 x 60 = 24,000

if u say I'll buy that truck for 19,200 then ur monthly payment is still 400 only its x 48

U would have just paid an extra 4800 + interest if u said "i can do 400 a month.

always negotiate the final price - not the monthly payment

Good Luck :)

[mikecancu812]

Its actually better to have bad credit than it is to have no credit. Go get yourself a gas card or somethin that you would normally pay cash for and start usin it to build up some credit history.

[liex21]

No credit = bad credit and on a vehicle you take out a loan for you have to have collision insurance...I say do exactly what jcv400ex said my friend made the same mistake your about to and all he does is work just to have transportation he rarely has money to do anything and if for some reason you lose your job your screwed

[fastredrider44]

It will only be about 6 months before you decide payments blow and you would rather drive crap then something you pay twice what it is worth. If you're good at math, you will find out that loans are a scam. If you want to build credit, get a gas card or something, and always make the full payment.:macho The best truck you will ever own is the one you pay cash for.

[Scro]

Lots of good advice in this thread. My daily driver is 98 f-150 with close to 300,000 miles. It gets me 130 miles to/from work everyday. I bought it for $1000, and I've been driving it for over 1.5 years.

It pays to drive something cheap.

[matt581yfz450]

Originally posted by extremeblastr
$100 a month for full coverage at 19? i want the name of your insurance agent he can have my business anytime, full coverage at the age of 19 is going to run you 250+ a month. its not worth it, buy a beater car/truck drive it til it dies and save every last penny and you can buy that cummins with cash a few years down the road.


ya im 19 and my insurence is around 250 a month but i do have a loan on my truck tho. Even if i didnt still would be alot of $ lol

Originally posted by Pipeless416
its also nearly impossible for somebody his age to be approved for an unsecured loan

Maybe my bank loves me but I was approved for a personal loan by myself. Of course it was no 6 grand.... Then again maybe it's because my savings account easily had the money to pay back the loan if needed. Just trying to build up some credit.

[TCracin440ex]

i didnt read this whole thread but if your clueless how a loan works then maybe you dont need to be taking one out. bc people that are "stupid" to how the way a loan works are the ones that get suckerd

first you need to apply for a loan if you have no credit history then that can be bad. because no credit is just about as bad as having bad credit. if you are approved for the loan and you go buy the truck you want you are going to have to run full coverage insurance on the truck and the bank is going to have a lien meaning the title is partially in your name and the title is partially in their name. if you dont pay your payment it will get repoed'

nother thing to remember is if you borrow 5 grand your going to be paying back more then 5 grand. depending on what your APR(anuel percentage rate) the lower the APR is the better. but alot of banks will loan to people with bad credit or no credit with a higher APR.

also some banks will look at work history. if you have had 6 different jobs in 3 years then they will be like hmm this guy either gets fired alot or cant make up his mind. when i got my loan for my truck i had been working a steady job at the same place for 2years which went to my advantage.

best thing you can do if your dumb to the way a loan works then the thing is not to take one out. you can build credit other ways then a bank loan. i started building my credit when i got my own cell phone contract then later i got my trx 450 financed thru american honda, then i got a loan out for my truck from my local bank

but if you do take out a loan just remember to pay more then the min. payment because whatever you pay over the minimum goes towards your principal (the orignal loan amount). the quicker you pay your loan off the quicker you will build credit and the less amount of interest you will pay.

ive also noticed alot that some banks are not loaning money out for older vehicles because there really aint no money in the automotive market these days being the economy is so bad. vehicle values depreciate faster then anything else. and if you were to loose the vehicle thru a repo then most likely the bank wont get what you owe to them

those are just my $.02 i could keep going on all day on loans but if you know nothing about them then you most likely wont get what im talkin bout

[buck440]

[QUOTE]Originally posted by jcv400ex
[B]Why go $6,000 in debt at 19 years old for a Cummins truck that maintence will kill you on? 15 quarts of oil, fuel filters, etc, etc when you're only making $350 a week? Plus you will have to carry full coverage auto insurance. So you're looking at a 3 year loan for $6,000 that amounts to about $195 a month. Plus auto insurance at 19, you're looking at $100 a month. So right...

in a few months i'm going to start my new job at the gibson county power house as a track inspector/greaser starting @ $18.25 an hour and i no longer go to collage...not to be bragging but money then will be no biggie and i gave up collage aanndd come on man, it's a cummins. i believe if you want somthing bad enough you go and you get it which i'm going to do, i guess i'm a little passionate about things just like i would think some of you are about ridding.

[Ichoptop]

If you want something bad enough you save the money to buy it. Buying anything on credit is stupid and a waste of money. A $20,000 dollar truck will cost you $35,000 by the time you pay it off. I drove several $2,000 dollar trucks for years until I could buy my big Ford...in cash. The only thing you finance is a house. And only becasue not many people have $250,000 laying around.

a major issue with the economy right now is becasue both rich and poor decided to loan and take loans they couldn't afford. If you don't have it in cash you can't afford it and probably dont need it.


My goal in life is to have a credit score of ZERO and be happy with it.

[fastredrider44]

Originally posted by buck440

in a few months i'm going to start my new job at the gibson county power house as a track inspector/greaser starting @ $18.25 an hour and i no longer go to collage... [/B]

First off, it's spelled college. Second, don't count your chickens before they hatch. Anything could happen between now and then.

[buck440]

Originally posted by fastredrider44
First off, it's spelled college. Second, don't count your chickens before they hatch. Anything could happen between now and then. sorry my spelling is alittel off feal free too corect any time. thanks everybody else.

[fastredrider44]

You ask advice. You get some. You ignore it. You do what you were going to do. Hmmmn.

[buck440]

i read everybodys post. just because i don't reply or ACT like i ignored it doesn't mean i did. i know it may not be the best idea getting a loan right now for me but if you knew what i drive, where i live, what i haul, what my interest are you might understand a little more why i'm wanting to do this. i appreciate all of your concerns but were getting a little off topic in the way how to get a loan, requirements, ect. but you all did help me understand better of what to do now just so you don't think were getting nowhere and i thank you:)

[jcv400ex]

Blah, blah blah... I could say a million things, but all I'll i'm going to say is, you've got alot of growing up to do, good luck!

[fastredrider44]

As far as loan requirements, with no credit, a cosigner is a must. Also, not all banks will give a loan on an auto over 10 years old. Full coverage is also a must on vehicles with a lien against them. Try to figure out what your APR will be. Then check out a loan calculator (do a google search, there are tons) and see what the interest will add up to. It will be in your best interest to pay as much extra priciple per month. Two reasons: Saves money on interest, and looks better on your credit to have an early payoff. In KY, you don't have to have the title, but you will have to have the vin numbers. They probably wont loan the money if there is a lien on the truck already. At my bank, they will ask what you make per week, to determine how long of a loan it should be, then give a ball park. For a 6000 dollar loan, payments will be around 200 a month for 3 years. I took out a loan at 18 for a truck, and that's how I know that they aren't fun. There for a while, I had two truck loans. Dumbest thing I have ever done. I buy with cash now. A downpayment would be good too if you could swing it. Good luck.

[destey]

Loans and credit are everything that is bad about this country.

Buy everything in cash, except for your house and put down as much as possible on that.

If you disagree think of all the items you could have bought with the interest added on. The only reason is to have now now now and that's childish. Wait until you have the money and you won't be behind in life, you'll be ahead of the game.

The only time I've borrowed in my life was on a stock market gamble (2x margin) and it was the worst thing I've ever done.

You'll be paying out the nose, 1.5-2x what the thing is worth and the only plus is you get it now. Instant gratification (is the devil)

sorry to sound so negative, but its how i feel on the subject

[sunco]

Buy now pay later - Can't understand whats so wrong :D

[Regular_Joe]

But we are the instant gratification generation ....

[Scro]

Originally posted by destey
Loans and credit are everything that is bad about this country.

Buy everything in cash, except for your house and put down as much as possible on that.

If you disagree think of all the items you could have bought with the interest added on. The only reason is to have now now now and that's childish. Wait until you have the money and you won't be behind in life, you'll be ahead of the game.

The only time I've borrowed in my life was on a stock market gamble (2x margin) and it was the worst thing I've ever done.

You'll be paying out the nose, 1.5-2x what the thing is worth and the only plus is you get it now. Instant gratification (is the devil)

sorry to sound so negative, but its how i feel on the subject

Dave Ramsey much???:D I agree with you, but sometimes it's inevitable.

[PhilMoore]

People who know can scream until they are blue in the face and kids won't listen.

Still, here I am again...

DO NOT BORROW MONEY FOR ANY REASON.

You have your whole life ahead of you, do not ruin your future by borrowing against your life.

When you are young, borrowing money makes it seem like your life has value. Money lenders are in business solely to take advantage of naive people, such as yourself.

NOBODY THAT MATTERS will be impressed with your fancy new truck. Your future family WILL be impressed by your fortitude and responsible choices. People who you care about, will care about you for who you are, not what you have.

Make no mistake, I AM the pot calling the kettle black. However, that is the beauty of evolution; future generations can learn from past mistakes.

[buck440]

alright in a few weeks me and my dad are going to get one for the truck and he will cosign and with my gas card I had for a few years and my cellphone they said my credit was good and I have a few thousand saved incase I loose my job or get low on money I can use on it. I think it should work out fine.