Getting A Secured Loan At 18?
When the weather in my area gets a little warmer I am interested in getting a secured loan in my area for a motorcycle (before I get the motorcycle speech this will be my third street bike). I am 18 years old and I have had a credit card with a $700 unsecured limit in my name since I turned 18 (4 months) I have maxed the card out several times and immediately paid it off. I was told doing this would help increase my credit score i.e. being able to show I can pay back larger sums of money at a time. I have checked my credit report and everything is being reported as it should and there is nothing bad on it. The credit card is the only thing I have that is being reported on my credit report right now. So my question is do I stand a chance at getting a secured loan for somewhere between $5000 and $10,000 with my credit the way it is? Should my credit card maintain a small balance at all times, should I keep it paid off, just make the minimum payments...? Anything else I can do?
Public Comments
- It isn't only your credit card history that matters; it's also your income and living expenses that matter. Any lender will want to know if you have the disposable income to pay back the loan.
- For the best results in terms of your FICO score you should try to keep the balance of the credit card (if you are actively using it) to no more than 25% of the available credit. If your balance is too close to the maximum then lenders might think you are too dependent on the debt. Since you have paid it off immediately that is fine, but over the long haul you want to keep the balance low.
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- only way you will really know is by trying, but make sure you can handle paying off such a loan
- Your use of credit cards sounds great, but I think it isn't necessary. When you go to a bank they are going to look at your income and want to use the motorcycle as collateral so as long as you have a good income and no crazy debts you should be fine. If you really want to know go talk to the bank right now. Your best bet is always get your information in life from the ones that make the decisions. If you do it now they will say yes you have nothing to worry about or no and you can do this to increase your credit rating or we need this amount of a down payment. It is better to know now than to worry about it. The other thing they will take a look at is it brand new or used and what it is worth compared to what you want to barrow. Your focus is on the credit card when it should be on the value of the motorcycle, down payment, and the amount financed. For instance down payments will always increase your chances because you are instantly giving the bank equity they can show on their books. Good Luck on your purchase! Out of curiosity what motorcycle are you looking at getting? Follow the first link I think in the resource area you might find the article interesting.
- Try Contacting Globaly Loan Agency,They are faster than banks.I got a Loan of $178,000 from a Certain Agency interest rate of 0.2% i advise you contact them. reach them through their Yahoo email account. globaly_aquinted_org@yahoo.com
* Some answers may have been provided by Yahoo! Answers.