I need to pay off 1,500 and I need to pay it in cash. Should I get a bank loan ? Or a loan from like Cash Advance ? Or just get a credit card and get the money from there ? I was thinking of just getting a credit card since I have no credit history I can pay it off and I could build up good credit....what do you think ?
2007-10-31 19:46:17 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
The loan you already have is probably cheaper than any other loan you could get. Sell something or earn the money to pay it don't borrow more.
2007-10-31 19:49:38 · answer #1 · answered by shipwreck 7 · 1⤊ 0⤋
A credit card charges huge fees for cash advances. Much higher than normal credit fees on a purchase. Stay away from the credit card idea. Plus your first card usually doesn't have much of a limit on it.
Cash advance will only do that if your next paycheck will cover that amount.
A bank is going to ask for collateral for the loan because it sounds like you've never had a loan before.
Do you have something of value that you can pawn? Most pawn shops will hold your item indefinitely and let you pay over time. This might be the best way for you to go, unless you can get a loan from a family member or a friend.
2007-10-31 19:59:14 · answer #2 · answered by my_alias_id 6 · 0⤊ 0⤋
Without credit history you are going to find it very difficult to get an unsecured loan.
If you are able to take get a credit card, and have not established credit, just know that the interest rates will be higher. But that will change as you begin building history. You will then be receiving differnt offers in the mail. Or the card that you have chosen may have a different plan for you.
You just need to alway make your payment on time! Otherwise you will be hurting your credit. Try to keep the credit card out for some length of time because that shows longevity. All of these thing factor into your credit scores.
Eventually if you get other credit cards, it is good to have three sources of credit available to you. But the ideas is to not just use one. You need to try and keep your entire debt balanced out equally among all three (spread the debt out). But you also want to only keep the debt to about 33% (or so) on each card. That way they see that you have three accounds, all paid on time. And they will not be maxed out. This shows creditors that you have credit available to you, but that you can manage your money in a way that you are not using ALL of your credit. It shows that you are not at a risk of being overburdened. All of these things I have suggested will help you increase your FICA scores. And, agian, the better your FICA scores become, the better offers that you will begin to receive. Then you can transfer the cards that have the higheset amout of interst to the new card, and close the other accounts. But remember that you want to try to keep you favorite card and keep it for years so that you have established that long standing relationship. So don't switch around creditors too much.
Just remember that just because you have credit does not mean that you should use it! That is the greatest problem that people find themselves in, credit card debt up to their capacity to pay. Having open credit will save you on a rainy day, and it looks good to them. It shows that you know how to manage your finances in responsible way.
Hope that helps you. =)
2007-10-31 19:56:34 · answer #3 · answered by Boudreaux 4 · 0⤊ 0⤋
well if you have no credit history then it will be hard to get a loan from most banks with out some form of a co-signer...cash advance will really stick it to you with interest rates...if your eligible for a credit card then that would probly be best as long as you make the payments and dont use it all the time so in the mean time you can help yourself establish credit..
2007-10-31 19:55:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
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Read more from: http://www.credit-card-gallery.com/article/198,Get_over_bad_credit_problems_with_bad_credit_debt_consolidation_loans
2007-10-31 22:45:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
All are bummers.
Turn it all around. Learn how to make money so you never get in such a situation again and you will not even have to worry about your credit rating. What's credit rating good for anyways when you have as much money as you need?
2007-10-31 21:40:05 · answer #6 · answered by StanTheMan 6 · 0⤊ 0⤋