Questions on bank loans

mustang17 · 02-15-2001, 12:07 AM

I want to get a $4000 loan from my bank to start building a motor. I know that interest rates are low, so now may be a good time. I'm a collage student and work part time. I make roughly $300 a week, give or take. I'm trying to hide the amount of the loan from the parents (they think the cars a money pit). That means no co-sign and hardly any calateral. I have a meeting with the bank Friday. I will be dressed to the nines and act like a perfect gentleman. I will beg if it comes to that. Now to my questions. First, do you think I have any shot at getting this loan? If I do get the loan, how long and with what rate should I seek? Do I have to tell the bank what I'm doing with the money?
Any help would be great. Thanks

------------------
1995 GT Black sleeper
Edelbrock 6037 heads,Edelbrock proformer intake,Edelbrock cam, 70mm TB,75mm pro-m mass air,Taylor wires, Underdrive pulleys,Equal length headers,K&N filter
Flowmaster cat-back, Eibach pro rate springs
lower control arms
3.73 gear Centerforce clutch

Mach 1 · 02-15-2001, 03:28 AM

well, if is a "personal loan" I dont think they will want to know what you want to do with the money. I think this is a bad move financially for you, and would reconsider. You want to go into debt to build a motor? Your parents are right, believe it or not.

The only positive to this, is you can build your credit history, if you pay it back on time.

And remember, u wont have to beg, the bank is making money off of you, and if you are desparate enough to accept any interest they offer you, thats your business. But the smart thing to do would be to shop around for the best rate you can get.

------------------
1993 GT/AOD
'93 Mustang GT

86GT · 02-15-2001, 09:52 AM

Why don't you do it through your student loan? That's how I did mine. I budgeted myself for school to make sure I've got that covered, then the rest is for the car. I have to pay it back if I use it or not so I figured use it and enjoy it, that way right now all I've got to pay is interest payments, then 1 year after I graduate then I'm paying the principal back like a normal loan. That might be a better option.

95mustanggt · 02-15-2001, 11:46 AM

Just remember that debt sucks! It is the only reasonmy car is not totally modded. Even a $4,000 loan can be a ***** to pay off.

I would not go into debt to hotrod a car. What if it gets stolen or in an accident, you will still have payments to make and no car to enjoy!

If you do go, shop around. Some banks are better than others. Mach 1 is right, they are making money off you, just remember that.

Whatever you do, best of luck.

------------------
White 1995 Mustang GT
Dynomax Cat-Back, Offroad H-pipe, K&N Filters w/o Air Silencer
My 1995 Mustang GT

btr · 02-15-2001, 12:29 PM

Bad move, wait until your done with school and have a good job. Besides, you should be studying instead of working on your engine!

GONZO99TA · 02-15-2001, 02:36 PM

a car is not an investment. so going into debt to buy one is bad enough, but going into debt to mod one would seem worse!
if you do try to go through with it, i hope your credit is good. most banks will not give personal loans of that amount unless you you have established good credit and a good debt to income ratio. even then rates for these loans are not the best, typically around 10-14% (much higher with bad or no credit).
a better way would be to apply for a quality credit card that is willing to offer you a low rate. all my credit cards are less than 10%. the credit card will also come in handy for mail order parts. they also fight for you if a company tries to stick it to you on parts.

mustang17 · 02-15-2001, 03:30 PM

All good points. I may have to rethink my plans.

Mach 1- Why not go in debt to build a motor? I go into debt from spending so much a month on bars, dinner out and cigaretts(150 a month!) So, I figure cut those things out in bring in a healthy hobby.

86GT- Did you need someone to co-sign for that loan?

95mustanggt- Debt does suck, but live and learn. I just don't want to get in over my head.

btr- Getting real world experience is just as important as studying.

Do you think the bank will view this as a high risk loan and give me an outragous rate?

Do you think a $2000 dollar loan would be more feasible?

Also, do you think if I put everything on my credit card and paid $600 a month at 14%(I think) would this work out better than a bank loan?

So many things to consider....

Thanks, Eric

WHITECOBRAGIRL94 · 02-15-2001, 04:14 PM

I work for a bank. Getting
loans today is not easy.
personally I would wait if I
were you. Once you get
alittle money loaned then it
starts to build up against
you and if you miss pymts or
anything that can effect your
credit even worse. More than
likely you would have to have
a co-signer if you have never
had credit or have had credit
less then 2 yrs old. I have
had credit for 7 years and it
is still hard for to get
anything, and most of all to
get out of debt. You should
listen to your parents. Have
the car all fixed up is nice
but could cost you more in
the long run.

------------------
94 Mustang Cobra: off-road h-pipe, 3:73 gears, motersports underdrive pulleys, MAC cold air induction, MAC 1 1/2 inch lowering springs, K&N Air filter, Maximum Motersports caster/camber plates. Soon my steeda tri-ax shifter.
94 Thunderbird SC: only mod is a K&N air filter. But she runs very well and hard.

86GT · 02-16-2001, 12:50 AM

Yup, my dad co-signed for it, since he makes enough and I don't have the credit history to do it. Just remember that everyone here is right, debt does suck no matter what, and I know it too, if the car is stolen, it better be insured.

02-15-2001, 12:07 AM	#1
mustang17 Registered Member Join Date: Sep 2000 Location: Concord, MA, USA Posts: 264	Questions on bank loans I want to get a $4000 loan from my bank to start building a motor. I know that interest rates are low, so now may be a good time. I'm a collage student and work part time. I make roughly $300 a week, give or take. I'm trying to hide the amount of the loan from the parents (they think the cars a money pit). That means no co-sign and hardly any calateral. I have a meeting with the bank Friday. I will be dressed to the nines and act like a perfect gentleman. I will beg if it comes to that. Now to my questions. First, do you think I have any shot at getting this loan? If I do get the loan, how long and with what rate should I seek? Do I have to tell the bank what I'm doing with the money? Any help would be great. Thanks ------------------ 1995 GT Black sleeper Edelbrock 6037 heads,Edelbrock proformer intake,Edelbrock cam, 70mm TB,75mm pro-m mass air,Taylor wires, Underdrive pulleys,Equal length headers,K&N filter Flowmaster cat-back, Eibach pro rate springs lower control arms 3.73 gear Centerforce clutch

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02-15-2001, 03:28 AM	#2
Mach 1 Registered Member Join Date: May 1999 Location: Georgia Posts: 3,866	well, if is a "personal loan" I dont think they will want to know what you want to do with the money. I think this is a bad move financially for you, and would reconsider. You want to go into debt to build a motor? Your parents are right, believe it or not. The only positive to this, is you can build your credit history, if you pay it back on time. And remember, u wont have to beg, the bank is making money off of you, and if you are desparate enough to accept any interest they offer you, thats your business. But the smart thing to do would be to shop around for the best rate you can get. ------------------ 1993 GT/AOD '93 Mustang GT

02-15-2001, 09:52 AM	#3
86GT Sniffed too much n20 Join Date: Oct 1998 Location: Ont, Canada Posts: 1,018	Why don't you do it through your student loan? That's how I did mine. I budgeted myself for school to make sure I've got that covered, then the rest is for the car. I have to pay it back if I use it or not so I figured use it and enjoy it, that way right now all I've got to pay is interest payments, then 1 year after I graduate then I'm paying the principal back like a normal loan. That might be a better option.

02-15-2001, 11:46 AM	#4
95mustanggt Registered Member Join Date: May 2000 Location: Kamloops, BC Posts: 2,875	Just remember that debt sucks! It is the only reasonmy car is not totally modded. Even a $4,000 loan can be a ***** to pay off. I would not go into debt to hotrod a car. What if it gets stolen or in an accident, you will still have payments to make and no car to enjoy! If you do go, shop around. Some banks are better than others. Mach 1 is right, they are making money off you, just remember that. Whatever you do, best of luck. ------------------ White 1995 Mustang GT Dynomax Cat-Back, Offroad H-pipe, K&N Filters w/o Air Silencer My 1995 Mustang GT

02-15-2001, 12:29 PM	#5
btr Registered Member Join Date: May 1999 Location: Mandan, ND USA Posts: 184	Bad move, wait until your done with school and have a good job. Besides, you should be studying instead of working on your engine!

02-15-2001, 02:36 PM	#6
GONZO99TA Registered Member Join Date: Dec 1999 Location: Great Falls, MT Posts: 144	a car is not an investment. so going into debt to buy one is bad enough, but going into debt to mod one would seem worse! if you do try to go through with it, i hope your credit is good. most banks will not give personal loans of that amount unless you you have established good credit and a good debt to income ratio. even then rates for these loans are not the best, typically around 10-14% (much higher with bad or no credit). a better way would be to apply for a quality credit card that is willing to offer you a low rate. all my credit cards are less than 10%. the credit card will also come in handy for mail order parts. they also fight for you if a company tries to stick it to you on parts.

02-15-2001, 03:30 PM	#7
mustang17 Registered Member Join Date: Sep 2000 Location: Concord, MA, USA Posts: 264	All good points. I may have to rethink my plans. Mach 1- Why not go in debt to build a motor? I go into debt from spending so much a month on bars, dinner out and cigaretts(150 a month!) So, I figure cut those things out in bring in a healthy hobby. 86GT- Did you need someone to co-sign for that loan? 95mustanggt- Debt does suck, but live and learn. I just don't want to get in over my head. btr- Getting real world experience is just as important as studying. Do you think the bank will view this as a high risk loan and give me an outragous rate? Do you think a $2000 dollar loan would be more feasible? Also, do you think if I put everything on my credit card and paid $600 a month at 14%(I think) would this work out better than a bank loan? So many things to consider.... Thanks, Eric

02-15-2001, 04:14 PM	#8
WHITECOBRAGIRL94 Registered Member Join Date: Feb 2001 Location: Mooresville, NC Posts: 105	I work for a bank. Getting loans today is not easy. personally I would wait if I were you. Once you get alittle money loaned then it starts to build up against you and if you miss pymts or anything that can effect your credit even worse. More than likely you would have to have a co-signer if you have never had credit or have had credit less then 2 yrs old. I have had credit for 7 years and it is still hard for to get anything, and most of all to get out of debt. You should listen to your parents. Have the car all fixed up is nice but could cost you more in the long run. ------------------ 94 Mustang Cobra: off-road h-pipe, 3:73 gears, motersports underdrive pulleys, MAC cold air induction, MAC 1 1/2 inch lowering springs, K&N Air filter, Maximum Motersports caster/camber plates. Soon my steeda tri-ax shifter. 94 Thunderbird SC: only mod is a K&N air filter. But she runs very well and hard.

02-16-2001, 12:50 AM	#9
86GT Sniffed too much n20 Join Date: Oct 1998 Location: Ont, Canada Posts: 1,018	Yup, my dad co-signed for it, since he makes enough and I don't have the credit history to do it. Just remember that everyone here is right, debt does suck no matter what, and I know it too, if the car is stolen, it better be insured.