Topic: I've got some Bank Loan Questions.

[BigMike]

Hey guys

First let me say that I have a fat ZERO for my credit score. I have never had credit and I do not have a credit card. I guess if one were to check my credit report, it would say that I do not exist.

So its obvious then that I have no idea about loans or loan packages that lenders offer.

What I was thinking about doing was having a loan through a parent (or someone who trusts me and has established credit) for about $3000. Then I will match their monthly dues and probably even pay them a bit extra for their help.

So here's the question, is there such a thing as a personal cash loan?

The reason I ask is because I want to upgrade to a better motorcycle, and will need about $3k to do it. But if I use an auto loan, then "I" won't own the bike and I will have to have full insurance coverage on the bike, something I definitely do not want to do. I know that if a Bike costs under $10k then full coverage is not required, but all I want to do is just the minimum liability insurance like what I have now, $21/month, and if the Bank owns the bike while I make the payments, then I am sure I can not get that rate anymore... But if I have $3k of cash, then I can just buy the bike out-right and it will belong to "me" even though I will still be making payments to the bank monthly. I will be buying the bike used from a private party, so cash is cash. I don't even want to tell the bank what I've done with the cash, basically..

I mean, for instance, if I got a home improvement loan for like $30k, how does the bank know that its for my home? Am I supposed to show them all of the receipts from Lowes or Orchard Supply that I am infact improving my home? What if a couple grand of that went for personal use? Does that even matter?

Thanks
BigMike

[gabriul]

Well, do you have a cell phone or anything else that can be proven that you have been making payments??
Without any credit, a bank will not give you a person cash loan. Even if you have good credit, a bank will charge you a very high interest rate for cash loans.

You can get a wellsfargo account, and get a visa for $1500 if your a student.
That helps to build credit. But for an immediate way to get your $3k. Talk to the parents or the rich friend.

[Lady Di]

Well, do you have a cell phone or anything else that can be proven that you have been making payments??
Without any credit, a bank will not give you a person cash loan. Even if you have good credit, a bank will charge you a very high interest rate for cash loans.

You can get a wellsfargo account, and get a visa for $1500 if your a student.
That helps to build credit. But for an immediate way to get your $3k. Talk to the parents or the rich friend.

wot he said. As far as home loans, they are using your home as collateral and I don't think they really care what you use the money for.
Just as if you had a vehicle that was paid for and worth anything you might be able to get a loan against the vehicle, you would be putting that up as collateral.
It's a good thing to get yourself situated with a good credit score. Just don't eff it up!

[BLACKDOG]

Well, do you have a cell phone or anything else that can be proven that you have been making payments??
Without any credit, a bank will not give you a person cash loan. Even if you have good credit, a bank will charge you a very high interest rate for cash loans.

You can get a wellsfargo account, and get a visa for $1500 if your a student.
That helps to build credit. But for an immediate way to get your $3k. Talk to the parents or the rich friend.

IF you've ever paid rent, or bills on a regular basis, this actually is recognized as credit.  Its not as good as having a credit card, but it helps.  You may as well go into your bank and ask them, the worst they can do is say no.  If they say no, then you can go to the person that trusts you, and have them get the loan

You can also go to BofA for a student credit card, and pretty much any other bank branch.

[Lady Di]

IF you've ever paid rent, or bills on a regular basis, this actually is recognized as credit.  Its not as good as having a credit card, but it helps.  You may as well go into your bank and ask them, the worst they can do is say no.  If they say no, then you can go to the person that trusts you, and have them get the loan

You can also go to BofA for a student credit card, and pretty much any other bank branch.

You may also be able to get a loan in your name but with a co-signer. That at least would go to your credit rating.

[Willy Mammoth]

What she said. That would be the way to go, It would give you the chance to build your credit by paying a bank and not a person that won't report to the credit bureaus.

You should be able to get 3K from a signature loan with a co signer.

Take the extra money you would have paid to the extra insurance and put it toward some life insurance.

You can use that for collateral in the future.

[kneedownnate]

Signature loan is how I got my first bike, got $3,000 too.  I had purchased and made payments on a cheap car for a friend, then got a sears card, so that's how I had established my credit.  You could also try going to your bank and getting a credit line.  Sorry if that's been said before, I'm too tired to read.

[kneedownnate]

Oh yea, and you've been riding since you were 16 :wink: , insurance will be cheaper!  Mine woulda been $80 for the year for plpd, but I upgraded my payouts 10x so it was $116. 

[kneedownnate]

Oh yea, I love having my bike back!  36+ mpg this tank!  I can make it a little better, but a girl's gotta have some fun

[BigMike [OP]]

Thanks for the comments guys, I was out of town on Fri and Sat.

Well, I have made payments on a cell phone before, and I am currently making payments to Macys, Express, and insurance.

Basically I am just planning on using a parent or a friend to do this, and I will only need about $2k - $3k.

I need to go into my bank sometime this week to get something notarized, so I think I will talk to them about loans. I'll try to get one for myself and just see what happens. I go to EECU, which is a credit union, and they usually have much better rates than the major chain banks.

I've learned alot already, but I will not really be getting into this until August or so, but I wanted to get the ball rolling if I needed to do some 1-2 month process, which I guess isn't necessary, but anyways...

Credit checks can take up to a week I've heard

[Bender]

There's a real easy way to check your credit...Federal Law gives you the right to receive a free copy of your credit report every year from each of the three major consumer reporting companies.  You don't get the actual score unless you pay (as far as I know).  BUT it will show you what everyone else sees.  It only takes about 10 minutes and you can print and go.  It's also a darn good idea to keep track of this type of stuff in this day and age of identity theft!

https://www.annualcreditreport.com/cra/index.jsp

I've never heard of a credit check taking that long for a loan that small.  Takes a while if you're buying a house or something, but something small like a few grand or a car takes very little time.  Be careful, when people check your credit, it impacts your credit score. 

[motorider228]

I didn't read the entire thread but my parents own a mortgage company and they are pretty good at getting people with zero credit a loan. If you want a phone number where they can be reached or anything just shoot me a pm.