Loan?
- Thread starter Tokermon
- Start date
but i want a bit extra for something else so i want to be in control of what i spend it on and not have a loan for whole car, i just want a cheap run around anyway and pay it at once. do people buy cars etc with credit cards?
Is it done? Sure! I bought my street bike on a credit card because the interest rate was 2 points lower than the loan that the dealership had quoted me. I think, though, that you may find yourself in a situation where a very inexpensive used vehicle will be sold by an entity that does not accept credit cards, and cash advances on a credit card are almost ALWAYS at an interest rate far higher than the card's nominal rate, in which case, a bank loan is preferable.
Then there is the option that you have not explored yet, which is a car loan through a dealership. Those are all over the fucking place, lol... depending on your credit, the interest rate could be anything from barely over prime to worse than a credit card.
If you decide to buy the car on a credit card, see if you can find a privately owned garage that has a couple cheap used cars kicking around. Start putting the bug in peoples' ears right away, because it might take you a little while to find something to your liking. A private seller may have a cheap car, but not the ability to process credit payments. The garage can.
Then there is the option that you have not explored yet, which is a car loan through a dealership. Those are all over the fucking place, lol... depending on your credit, the interest rate could be anything from barely over prime to worse than a credit card.
If you decide to buy the car on a credit card, see if you can find a privately owned garage that has a couple cheap used cars kicking around. Start putting the bug in peoples' ears right away, because it might take you a little while to find something to your liking. A private seller may have a cheap car, but not the ability to process credit payments. The garage can.
DrKatz420
Active member
Ever thought of going the old-fashioned route, and actually saving up to buy something? Since it sounds like you're already getting to and from work, you don't NEED a car right away. Try saving $150 first, and buy a nice bicycle. Then try to figure out how to cut $200 per month out of what you're spending on unneccessary things, i.e. cable tv, going to the movies, eating at restaurants. . . Once you can do that, you're 10 months away from having your 2 grand, and you don't owe anybody shit. If you get into debt now, even just a little bit, it's likely that you'll never get out, and you'll be paying interest your entire life. Learn to save now, and you may find yourself able to actually retire nicely at 55 instead of working into your seventies like so many Americans are having to do nowadays.
Tokermon
Member
Thanks stinkyattic some great advice, i'll look into it!
DrKatz420, I appreciate your post but my mind is set and I want to move onto better things so I don't mind being slightly indebted for a while. Most people get into debt. what about house 'owners'? there's nothing that wrong with being in debt as long as it's manageable, never being in debt is extremely rare unless you are privileged.
DrKatz420, I appreciate your post but my mind is set and I want to move onto better things so I don't mind being slightly indebted for a while. Most people get into debt. what about house 'owners'? there's nothing that wrong with being in debt as long as it's manageable, never being in debt is extremely rare unless you are privileged.
SweetNightmare
Active member
Loans and credit cards are almost a sure way to debt... Stick with paper...
zeeba amoeba
Member
Tokermon said:
Mortgage debt is waaay different, because #1 the interest rate is super-low, #2 you *have* to live somewhere, and #3 you get a big, fat, juicy tax break from all the interest you pay on a mortgage.
Nine times out of ten, credit card debt is a bad idea, and the only way I'd consider it is if you would otherwise lose more money. (e.g., roof repair, car repair). Or if you have a good opportunity to make money (e.g. buying a lawn mower and then cutting lawns for extra cash).
I personally detest credit card companies, and mail back all offers I get, including ones that are addressed to the wrong person. First I rip up the offer, then I add any other junk mail I've received that day, and then I stick it the self-addressed stamped envelope that they so kindly provided for me. I do about 1-2 of these every week.
Tokermon said:
I bolded that because thats exactly the kind of talk that gets you in trouble to begin with. Buying stuff you cant afford. Seems like you want to work a debt before you have worked a budget. Budgets let you know what you can afford so you can stretch that towards credit.
Bank credit is one time deals. Credit cards are revolving sources of credit. They offer better deals and maintain your accounts. Banks wont raise your loan and lend you more cash when you make good payments, you usually need to make another loan. Credit cards will.
daddy fingaz
Active member
If that loan is 19% apr and your in the uk thats about standard really for 2k, its not as bad as it sounds when you look at the payments and total repayable depending on what term the loan is over.
To be honest banks arent really bothered about loans of this amount cos they make no real money on them and tend 2 concentrate on 5k plus which again is why the rate is higher for these smaller amounts!
Your often better looking at an interest free O/D or credit card for smaller amounts as has been mentioned but obviously u have to be a bit more careful as ur not on a fixed term to repay the amount so it can easily spiral!
Also look on the internet for lower rate loans, but as everyone has said, save if u can, there is to much of a credit culture here and in the US advertising etc making want people think they need stuff they dont and everyone wanting it now!! this is all only just starting to have its knock on effects on the economy, ul also find credit is generally harder to get! anyway im rambling but just remember once your in debt ul always be in debt !!!
To be honest banks arent really bothered about loans of this amount cos they make no real money on them and tend 2 concentrate on 5k plus which again is why the rate is higher for these smaller amounts!
Your often better looking at an interest free O/D or credit card for smaller amounts as has been mentioned but obviously u have to be a bit more careful as ur not on a fixed term to repay the amount so it can easily spiral!
Also look on the internet for lower rate loans, but as everyone has said, save if u can, there is to much of a credit culture here and in the US advertising etc making want people think they need stuff they dont and everyone wanting it now!! this is all only just starting to have its knock on effects on the economy, ul also find credit is generally harder to get! anyway im rambling but just remember once your in debt ul always be in debt !!!
i think the only thing credit should be used for is buying real estate property....because its way too fuc...ing expensive for most people to pay with cash
otherwise its a good idea to have only one credit card....which you can use to order shit online with....and pay it off in full every month
the reality is if you have to use credit for something....you just can't afford it
and as I said above...imo...real estate is the only thing that should be in this category
living in debt sucks....and cash rules.....currently I don't live in the USA...but I lived there for 13 years...and my parents and family are still living there...and they are all up to their ass in credit....and suffering from it
otherwise its a good idea to have only one credit card....which you can use to order shit online with....and pay it off in full every month
the reality is if you have to use credit for something....you just can't afford it
and as I said above...imo...real estate is the only thing that should be in this category
living in debt sucks....and cash rules.....currently I don't live in the USA...but I lived there for 13 years...and my parents and family are still living there...and they are all up to their ass in credit....and suffering from it
Not sure what anyone else is thinking but 'credit' is a large part of your adult life. Having it or building it to a good status from now until you retire should be part of your goals since it will usually dictate your comfort level for when you do finally retire.
Good credit will help you faster than no credit history or worse bad credit history. Bad credit history can follow you for a long time.
Good credit will help you faster than no credit history or worse bad credit history. Bad credit history can follow you for a long time.
FrankRizzo
Listen to me jerky
I read earlier today on msn money that you should never take out a loan on anything that is going to loose value. Personally I slightly disagree, but everyones position is different. I don't have any credit cards. I only take loans out for big tickets things like a car. And some day hopefully a house. Other than that I save and pay in cash. I do have some debit from a snowmobile loan, but I consider that a big ticket purchase. I have recently been researching getting a new car and I'm finding out that even though I have paid off every loan I have ever taken out early I still don't have the best rating since I don't have any credit cards. The system is set up for you to fail, that's how the companies make all the $$$$.
With all that being said look for a local credit union. They are usually easy to join and at least where I am they can offer much better interest rates. For me it was half of the bank I use. Just an idea.
With all that being said look for a local credit union. They are usually easy to join and at least where I am they can offer much better interest rates. For me it was half of the bank I use. Just an idea.
JosephKisse
New member
Posted in 2008. The loan market has been on a bender since then it's 2019, the thread has been bumped inexplicably, and I still have my house.
Go conservative with your borrowing, y'all.
