Im 17 I have $3500 and want a car that costs $5000. I have a job and my mother is willing to co-sign but not take on the whole loan byherself. (she wants me to be responsible for the loan) I think getting a loan will be the best way to get the car and establish my credit. Am I allowed to get a loan by law?
2007-03-07 10:31:25 · 5 answers · asked by Sabrina R 2 in Business & Finance ➔ Credit
Yes, you are allowed to get a loan. But, because you are under the age of 18, you are not legally bound by any contracts you sign. So a bank or finance company would be taking a big risk if they lent you the money. Chances are they will insist on an adult co-signing for the loan.
Have you considered looking for a car that sells for $3,500.00? You have a lifetime to establish your credit. The best lesson to learn about credit, at your young age, is to avoid borrowing money at all costs. You get nothing for the interest you pay to a bank. The value of the car will continue to decrease, so you end up losing double.
2007-03-07 10:40:02 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋
It depends on the laws in your area. In most cases the only loan a minor can be held responsible for is an educational one (either private or non-federal). I would think that most car dealers or banks would require a co-signer that is of the age of majority (over 18) because if a minor is not legally bound to pay a loan they default on; what is the car dealership or banks way of getting their money if you decide your tired of making the payments in a few months?
In short, you will most likely have to have a person over the age of 18 co-sign for your loan.
Be aware that if you don't keep up the payments & pay them on time you WILL screw up the co-signers credit. & whoever gave you the loan will come after them (the co-signer) for the payments.
However, a $1500 loan should not be that difficult for you to pay off.
2007-03-07 10:44:18 · answer #2 · answered by low_on_ram 6 · 0⤊ 0⤋
Loan
2015-05-03 05:17:59 · answer #3 · answered by rosamond 1 · 0⤊ 0⤋
Tell them if you are asked that you are eighteen. I think you need to be eighteen to enter into a contract Like it or not if your mother co-signs she is really buying the car. Good luck
2007-03-07 10:45:02 · answer #4 · answered by rallman@sbcglobal.net 5 · 0⤊ 0⤋
http://www.newhorizon.org/Info/credit-improvement-articles.htm
all you need to know!
2007-03-07 11:13:19 · answer #5 · answered by Trish L 1 · 0⤊ 1⤋