loan question

[ryansblaster]

I am 18 and currently trying to get a bike loan I have had a job for three years so I know I can pay the payments but I cant get a co signer. So I was thinking about asking if I could let the bank keep my title to my car which is paid for until I pay the the bike off. Does this sound like something they'd consider?

[tri5ron]

Originally posted by ryansblaster
I am 18 and currently trying to get a bike loan I have had a job for three years so I know I can pay the payments but I cant get a co signer. So I was thinking about asking if I could let the bank keep my title to my car which is paid for until I pay the the bike off. Does this sound like something they'd consider? It would completely depend on the WHOLESALE value of the car, and the discretion of the loan officer.

Even at that, I would highly doubt it, due to, The bank has no way to control the car, after the loan is granted.

In their eyes, you can get the loan, buy the bike, and crash the car the next day.

on the same note, you can crash the bike too, and kill yourself. Sad for your family,.... but bad business for the bank.

You are 18 y.o., and have yet to realize your own Mortality.

Would this by chance be a Streetbike ? or a Dirtbike ?

And if a Streetbike,...
are you talking a crotch rocket, or a scooter, or a tour bike ?

I'm betting it's either going to be a blistering fast crotch rocket,....
or a blistering fast dirtbike.

I highly doubt you are talking about a Honda Ruckus, ...am I right ?

Are you starting to see the Banks point of view ?
(and for that matter, anyone who could Co-sign).

[YFZ-FoFiddy-TC]

I've never had a problem getting a loan through my bank and I've never had a co-signer. You could potentially use the car as your collateral but it just depends on the bank really. And as for "crotch rockets", don't be a squid like 80% of them. If you buy one, buy FULL gear. Helmet, jacket, pants and boots. All these idiots riding around in a t shirt and jeans give sport bikes a bad name.

[HondaPohl]

The big question is do you have any credit? Personal loans are sometimes hard to get if you don't have any coladeral. If the car is worth anything they might. The banks are starting to lightin up a little bit. You might be able to get a secured loan for the bike it self if its also worth anything.

[slightlybent47]

I have paid cash for toys and I have gotten loans for them as well.
My best plan is to save up and pay cash, if you cram as much cash in a checking account or a jar in the closet as you can, you would be surprised at how fast it will build up.
Stop all the covenant store stops and getting drinks snacks and what not and you’ll discover how much you’ll save. Stop buying crap you don’t need and only get things that you have to have.
Make the girlfriend pay her way for awhile and stop draining your wallet.
If she’s a good one she will understand and help out, if not then she is not worth having.

If you do finance one then do the same thing with the payments, pay as much on it as you can and pay it off as fast as you can.

I would not risk my only ride (your car) as collateral, if times get bad for some reason you could lose the car and the bike.

[Scro]

Originally posted by slightlybent47
I have paid cash for toys and I have gotten loans for them as well.
My best plan is to save up and pay cash, if you cram as much cash in a checking account or a jar in the closet as you can, you would be surprised at how fast it will build up.
Stop all the covenant store stops and getting drinks snacks and what not and you’ll discover how much you’ll save. Stop buying crap you don’t need and only get things that you have to have.
Make the girlfriend pay her way for awhile and stop draining your wallet.
If she’s a good one she will understand and help out, if not then she is not worth having.

If you do finance one then do the same thing with the payments, pay as much on it as you can and pay it off as fast as you can.

I would not risk my only ride (your car) as collateral, if times get bad for some reason you could lose the car and the bike.

Well said.

[ryansblaster]

i know what your saying about spending and i am extremly good with money i might buy a monster a month if that haha i am a cheapass. I also know it will take all summer to save enough so I wouldnt have it till next year

[CJM]

Almost no bank is gonna give you a loan for the following reasons:
1. You lack credit, nt to say you may not have a card-but you dont have a long established history, you have not owned a home or perhaps a car, etc.

2. Your young, that alone they bias against you

3. You dont have collateral. Its not like you have a home, or something else they might take away besides the car-which isnt of much value to them.

4. No cosigner with little credit means they wont touch you with a 10ft pole

You want it, your gonna have to save up.

[slightlybent47]

The best bikes I have ever had and the ones I have had the most fun on were bought with cash. And with cash you can generally get a little better deal. I’m not talking using your credit card to pay it in full, because then you paid to much for the bike then you are getting hit with finance charges on top of that. at usually 25% .

Don’t play the game, save your money work hard and do odd jobs to fill in the time that your waiting to buy the bike,.

Trust me there is no better feeling then at 19 years old, walking into a motorcycle shop with all the cash you need to get the bike and all your riding gear all in one spot and get a great discount. Hand the man your stack of C notes and watch his eyes light up.

You will one out with a new bike and gear, or you move on to a another dealer that will take care of you.

Cash is king

[kfx400rider03]

i was in this same situation last year. had good job no credit there for bank would not give me a loan. it was the middle of summer when i wanted one so by the time i saved up enough money was november. then i just waited for winter to buy one for cheap and paid all cash.felt good to bring home a 04 gsxr600 that i worked hard for and paid every last penny for. only thing is when you get a loan for a bike you will have to get collision insurance and you being 18 collision will be pretty high on.
just save it worth the wait.

[derekhonda]

Yep, I will echo everyone elses comments and tell you to save and save and save until you pay cash.

Let me give you a couple examples:

Looking at a $5000 streetbike.

Cash = $5000
Bank loan = $5557.88 ($557.88 interest 7% over 3 years)

Insurance

Cash option, only need liability $250
Bank Loan, full coverage $800+

Buying a bike right now before summer, Paying a $500 premium, Same bike could be bought in Novermber for $4500.

Lastly, when buying a bike cash does indeed talk. I have sold numerous streetbikes at aroud the $5000 range, and I will tell you, when someone showed up with cash in hand, they walked away with it with a few hundred dollars savings. When they told me they would have to go to the bank and get a loan and meet back up with me, I don't think I ever budged from the price.


So basically, buying a $5000 Bike today costs you $5500, 800 insurance, $6300 to ride it this summer.

Buying a $5000 bike in october costs you $4200 (4500 bike, minus 300 discount for cash lets say) , and only $250 for insurance. $4450 to buy it for next summer.

So if you can wait it out, you save yourself about 2 grand.

[firefighterjosh]

Im guessing you don't have a co-signer because your mom or dad don't want you to have it?

Just save the money and wait....your too young to have payments.

[TheLane]

Originally posted by CJM
Almost no bank is gonna give you a loan for the following reasons:
1. You lack credit, nt to say you may not have a card-but you dont have a long established history, you have not owned a home or perhaps a car, etc.

2. Your young, that alone they bias against you

3. You dont have collateral. Its not like you have a home, or something else they might take away besides the car-which isnt of much value to them.

4. No cosigner with little credit means they wont touch you with a 10ft pole

You want it, your gonna have to save up.


Thats not 100% true :) Being a loan officer myself and doing this for a living i can tell you that yes! it is a possibility to get a loan.

We have started doing thin file loans( aka if you have little to no credit we will give you a small loan with a slightly higher rate ((9.19 usually)) )

We also usually hold you to an LTV of 80%. Aka if you car books out at 10000, we would loan 8000 on the vehicle.

Your vehicle WOULD be the only collateral, because all they would do is give you the cash for the banks lien to be recorded on the title, so what you did from there with the cash nobody cares. (aka you dont even have to tell them you are going to buy a bike)

Also, if you can qualify for a small car purchase loan, you can qualify for a small secured personal loan with cash out.
Reason being it is the same risk to the bank.

The reason you are held to an 80% LTV is because if you do total the vehicle, first thing that happens is your insurance company pays off your current lien holder, and if you have any negative equity (unless you have GAP insurance that is) it will not be paid and that is where the most losses come from.

Also per federal regulation ( the FCRA ) a bank CANNOT legally discriminate against you for age.

[Honda5]

I don't know about that age discrimination thing. My son worked and saved from the time he was 14 and when he turned 19 he wanted to buy a house rather then rent. After pre approval from 3 banks each one told him he wasn't old enough. Luckly a local bank gave him the money.
Long story short, just buy a cheap bike your going to crash it anyway. Save your money for school or a home.

[kfx400rider03]

Originally posted by Honda5
I don't know about that age discrimination thing. My son worked and saved from the time he was 14 and when he turned 19 he wanted to buy a house rather then rent. After pre approval from 3 banks each one told him he wasn't old enough. Luckly a local bank gave him the money.
Long story short, just buy a cheap bike your going to crash it anyway. Save your money for school or a home.

what you said is really harsh but true in most cases

[tri5ron]

Originally posted by TheLane
Thats not 100% true :) Being a loan officer myself and doing this for a living i can tell you that yes! it is a possibility to get a loan.
(aka you dont even have to tell them you are going to buy a bike)
Also per federal regulation ( the FCRA ) a bank CANNOT legally discriminate against you for age. Hahaha,... you better hope his parents don't get their fingers wrapped around your neck !



Originally posted by Honda5
I don't know about that age discrimination thing. My son worked and saved from the time he was 14 and when he turned 19 he wanted to buy a house rather then rent. After pre approval from 3 banks each one told him he wasn't old enough. Luckly a local bank gave him the money.
Long story short, just buy a cheap bike your going to crash it anyway. Save your money for school or a home. sounds to me like you have a responsible, intelligent, well raised boy there.
Good Job Dad !

So let me ask something,

If he wanted to buy a mind blurring fast streetbike at 18 years of age, instead of the house...
and he came up to you and said, "Dad,.... I wan't you to Co-sign a Bike Loan for me",....

What would you have said ???

[Honda5]

I probably would have told him he was on his own to get a sport bike. I help out with his quad but he had to sell his old race quad and quit racing for 2 years so he could work and save.

[TheLane]

[QUOTE]Originally posted by tri5ron
[B]Hahaha,... you better hope his parents don't get their fingers wrapped around your neck !


Hey! im not saying i think its a good idea! im just stating the facts :)

And yes the descrimination thing is fact Look it up, the regulation is called FCRA, the Fair Credit Reporting Act.

As long as your over 18, they cannot discriminate against you in the underwriting process, as long as your credit is substantial enough, your golden.

Ps. think about the fact that youll be making a X-year commitment on something! Better be sure your in it for the long haul.

[slightlybent47]

Playing the credit game.

So you want something and you can’t afford it”rite” but then you think, Oh they can finance it or I can just put it on my credit card and pay it later, It’s the American way “rite”

Credit can be a good thing for large purchases like a house or car or putting a new roof on your house. These things tend to be more then most people can pay in cash so credit is needed. This is the only few times you should consider using credit except medical or to get out of jail.

Everything else in life are not emergencies, in fact most are toys or things that can be saved up for. But in this day in age the banking industry wants you to believe that it’s so easy and there’s nothing wrong with using credit.

Well these are the financial “crack dealers” of the day.

The concept of credit and building a good credit score was in the beginning much more restrictive then it is now. They talk about having a good credit score and how important it is to keep it high in order to get better rates. This sounds like a good thing and it is if you plan or need good credit for that house or car.

But what the credit companies haven’t told you is now they have been able to use information that has nothing to do with your ability to pay your credit loan. And this information is being used to “in most cases lower your score in order to raise the percentage rate. This helps them bring in more profit. The lower the score the higher the interest rate will be, thus making them more money.

Consider this,
Every time you apply for a loan “any loan” your credit score receives a hit regardless if it is approved or not.
Every time you fill out an application for a job, your credit score receives another hit.
If you go to the hospital or doctor for something your credit score takes another hit.
Call around shopping for insurance for that boat, car or motorcycle, another hit for each one.
These are just a few examples of what is really going on, that affect your credit score.
Many of the things they use to base your credit score have absolutely nothing to do with your ability to pay your loan.

Now if you add the fact that banks have been caught manipulating the way they enter your checks and payments they receive from you. They have found a way to make you over draw your account and hit you with late fees and overdraft fees, and it’s all legal.


Like I stated earler CASH IS KING!

[Scro]

Originally posted by slightlybent47


Like I stated earler CASH IS KING!

And the paid off home mortgage has taken the place of the BMW as the status symbol of choice??? :D

[dustin_j]

Originally posted by Scro
And the paid off home mortgage has taken the place of the BMW as the status symbol of choice??? :D

Intelligence is rarely popular, haha.

[TheLane]

Originally posted by slightlybent47
Playing the credit game.



But what the credit companies haven’t told you is now they have been able to use information that has nothing to do with your ability to pay your credit loan. And this information is being used to “in most cases lower your score in order to raise the percentage rate. This helps them bring in more profit. The lower the score the higher the interest rate will be, thus making them more money.
and where are you getting this idea from? Sources? because there are tons of laws and regulations prohibiting this type of behavior. Sure there may be one bad bank here and there, but thats no reason to say all banks do this.



Consider this,
Every time you fill out an application for a job, your credit score receives another hit.
Call around shopping for insurance for that boat, car or motorcycle, another hit for each one.

Those are both soft hits and have little impact on your score.


If you go to the hospital or doctor for something your credit score takes another hit.

Where did you get that idea? only if you apply for some sort of financing to pay for the work you get done.


Many of the things they use to base your credit score have absolutely nothing to do with your ability to pay your loan.


Yet again, totally not true. Read up on the FCRA.

Cmon guys lets not scare the kid especially if your not sure on the facts. Credit is a great thing to have as long as you can control it.

[slightlybent47]

Originally posted by TheLane
and where are you getting this idea from? Sources? because there are tons of laws and regulations prohibiting this type of behavior. Sure there may be one bad bank here and there, but thats no reason to say all banks do this.


Those are both soft hits and have little impact on your score.
[/B]
Where did you get that idea? only if you apply for some sort of financing to pay for the work you get done.


Yet again, totally not true. Read up on the FCRA.

Cmon guys lets not scare the kid especially if your not sure on the facts. Credit is a great thing to have as long as you can control it. [/B]


How do I know this? I keep track of my credit score, and every time I have applied for insurance, I got a hit on my score and it went down. I went to the hospital and I got another hit and it went down again.
You said those were soft hits and have very little to do with the score. By saying that, you just confirmed my point. Soft hit hard hit, it all affects the score.

I wanted insurance for my street bike and wanted to pay cash for the whole year all at one time. 7 out of ten insurance companies wanted to do a credit check. Why? I’m paying cash in full, where is the credit needed here?

Believe what you want but it’s all a game designed in there favor.

[slightlybent47]

Also applying for a job, they do a check there too. Why? If I cant pay my bills then obesity I need a job!

[Pappy]

Employers would like to know if you have bad credit...if you cant manage your own affairs, chances are you cant manage your duties at work.


***Not really sure how that thought process will hold water since so many have issues or are having issues due to the bad economy.***

[TheLane]

Originally posted by slightlybent47
How do I know this? I keep track of my credit score, and every time I have applied for insurance, I got a hit on my score and it went down. I went to the hospital and I got another hit and it went down again.
You said those were soft hits and have very little to do with the score. By saying that, you just confirmed my point. Soft hit hard hit, it all affects the score.

I wanted insurance for my street bike and wanted to pay cash for the whole year all at one time. 7 out of ten insurance companies wanted to do a credit check. Why? I’m paying cash in full, where is the credit needed here?

Believe what you want but it’s all a game designed in there favor.

lol, its not a game. First off only certain insurance companies pull credit. Whenever you apply for insurance you are a risk to them, if your in collections with 10 other insurance companies they are gonna want to know that. That will effect your premium.

If you go to the hospital, yes they will pull your credit to see if all the extra work your asking for you will pay back, if you have 50000 in medical collections, yet again, they will want to know. ( a normal doctors office doesnt do this)

You, like typical americans, just expect everyone to take huge financial risks on them without anyone doing due dilligence to see if its a good, or bad idea.

[slightlybent47]

I don’t object to a credit report, but what I do object to is just because someone looked into it, that in itself affects the score. If it has no effect then I have no objection. That’s my point, it should only be based on my payment history and not how many times someone looked into it.

[slightlybent47]

If there not in it for the money and not lowering your score in order to make more money. Then try buying things on credit and then pay them off the first month. Your credit score will drop like a rock. Why? It’s not because you couldn’t or didn’t pay, but that they didn’t make any money off you so the penalize you for it.

[slightlybent47]

Here’s one for ya.
My credit card statement comes in on the 15th every month and it seas dew by 30th
If I pay it on the 16th you would think I was doing what they want, (they received it before the 30th)
But NO! They credit the account but because it was sent in to early they don’t count it as the next payment and if I don’t send in another payment on or just before the dew date.
They call and want another payment, hit me with late fees and report it to my credit report.

I tell ya it’s all a scam, legalized loan sharks!

[Pappy]

If everyone would do their best to avoid credit we would be much better off:p

[dustin_j]

Originally posted by Pappy
If everyone would do their best to avoid credit we would be much better off:p

Quote of the day :D

[CJM]

Bent, what card company is that-I think we should all avoid them.

I have a chase MC and never had a single issue, did have a few citibank cards but they are horrible. My card number was stolen no less than 5x somehow and they NEVER alerted me to anything-I had to see it myself online and call it in and it took months to resolve each one.

[slightlybent47]

Originally posted by CJM
Bent, what card company is that-I think we should all avoid them.

I have a chase MC and never had a single issue, did have a few citibank cards but they are horrible. My card number was stolen no less than 5x somehow and they NEVER alerted me to anything-I had to see it myself online and call it in and it took months to resolve each one.


Wells Fargo and Bank of America. I no longer use Wells Fargo and I’m working on getting rid of the one Bank of America card I have.
After that I will only carry one card for emergencies and everything else will be in cash as much as possible. I have had great results with USAA.
I wish I had all the money I wasted on loans and interest fees, no telling how much that would be. The worst your credit is the more you pay, of course but even at the best rate it still would be a lot.

[TheLane]

Originally posted by slightlybent47
Wells Fargo and Bank of America. I no longer use Wells Fargo and I’m working on getting rid of the one Bank of America card I have.
After that I will only carry one card for emergencies and everything else will be in cash as much as possible. I have had great results with USAA.
I wish I had all the money I wasted on loans and interest fees, no telling how much that would be. The worst your credit is the more you pay, of course but even at the best rate it still would be a lot.

sheesh! its no wonder you hate banks, You had BofA and Wells Fargo. its all starting to make sense.

[slightlybent47]

Yeah! I’m not smart enough to make this stuff up.lol

[CJM]

I have nothing bad to say about chase, no issues ever. Never had bank of crap or wells fargo tho.