Okay, I am 18 and wanted to go ahead and start a bank account, get a credit card and kind of pay it off so the bank will know I can be trusted. Then I wanted to get a $5,000 or $6,000 loan to buy a car. So my questions are
*How long will this take me and
*How many years will I be paying off the loan?
*Approximately how much will I be paying monthly?
2006-10-08 08:07:28 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
And what about cosigning? And I was thinking more like gasoline credit cards? Visa's too tempting :)
2006-10-08 08:13:29 · update #1
First, your credit is basicly not valid for 2 years. So your are building up your Credit in two years. Get some credit cards, no matter if the interest are high. Don't buy expensive stuff so u can pay the credit, open an account on the bank. After two years you can go ahead and apply for a loan on the banks. In ur case u want a car, go to the dealer, apply for the car. Remeber pay your debts before buying the car. They'll look everything
2006-10-08 08:10:56 · answer #1 · answered by djmarce 2 · 1⤊ 0⤋
If you can find $500 from somewhere, the bank will issue you a "secured" credit card, which will have a limit of $500, so the bank can't lose out (ie you are not a risk). If you use this card for everything for six months, making certain to pay the bill as soon as it comes each time, in full, you will have such good credit you'll be horrified by how much institutions want to lend you!
However. "Big picture" you might be smarter to find a way to do this (to build your credit) and simultaneously earn some cash to save up and pay cash for a car. If you can do that, then every dollar you earn is for you. If you buy a car on credit (and yes, I know that's how 99% of people do it) then half of every dollar you earn is for you, the other 50c you earned for the credit company. How much sense does that make?
Only buying things after you have the money is the way people get very, very rich. You can invest the money you are not giving away in interest, and become a millionaire by investing it. At 18, you can even invest it in wildly speculative things and still win in the long run!
Good luck!
2006-10-08 15:16:25 · answer #2 · answered by Anonymous · 0⤊ 0⤋
you must have collateral before you would even be considered. example in full time employment and earn enough to pay back the loan also have money in the bank or own property. if you don't have at least one of the above you stand zero chance of getting the loan or the credit card. you really need to have some history with a bank. or building society.
2006-10-08 15:16:40 · answer #3 · answered by mescalin57 4 · 0⤊ 0⤋
Based on your question, it seems like you might need some education. Check out - http://www.bankrate.com for lots of info related to your finances.
What you're referring to in the 1st sentence of you question is - building credit. If you have a job and can make the monthly payments (probably $150 - $200/month), I suggest getting nothing more than a 3 yr loan.
2006-10-08 15:11:43 · answer #4 · answered by scraps 2 · 0⤊ 0⤋
dam go to bank and u will get all the answer ...
how long it will take depends how much u choose to pay monthly and how much u give for starting a loan , everything depends how much u take and how much time u want to take.. u choose...
2006-10-08 15:11:01 · answer #5 · answered by Anonymous · 1⤊ 0⤋
you never mention if you will be putting down money ...interest rates etc.....most banks have a web page and an on-line calculator to help you figure it all out.....beware of credit cards...they can be very dangerous....peace
2006-10-08 15:11:06 · answer #6 · answered by sltydgx 5 · 0⤊ 0⤋