I am 20 with a checkings and a savings account, no credit card. I'd like to get a loan for about 4 thousand. I bank at wachovia and their min loan would be 8 thousand. where can i get approved for a loan? I make good money at circuit city, but i have no credit.

Not an answer to your question but a suggestion... get a credit card before you leave college. It can be difficult to get one after that.

---Eric

Not an answer to your question but a suggestion... get a credit card before you leave college. It can be difficult to get one after that.

---Eric

yeah the idea of owning a credit card has been in my head before, but i dont trust myself at all with one. :help

eastern motors

eastern motors

seriously? :dunno

will i be tackled by a football player?

credit unions! Is anyone in your family in the military or work for a military contractor? Your church (or worshipping center of choice) might also have one.

http://www.creditunion.coop/how_to_join.html

I'm a member of two around here because I work for the Army. They offer pretty good interest rates. I second the motion to get a credit card. Just get one and put it in a drawer if you don't trust yourself with it.

Also, if when you get a loan, do your best to make sure it doesn't have pre-payment penalties or minimum interest charges. If it doesn't have either of those, you could just take the $8k from Wachovia, spend $4k, then send in $4K+first month's payment in your first check.

yeah the idea of owning a credit card has been in my head before, but i dont trust myself at all with one. :help
Like David said... If you don't trust yourself just put it in a drawer. If you do charge anything on it then pay it off the same month. Just make sure you get one without any annual fees. I've heard several people complain about how difficult it is to get a credit card after college.

---Eric

Like David said... If you don't trust yourself just put it in a drawer. If you do charge anything on it then pay it off the same month. Just make sure you get one without any annual fees. I've heard several people complain about how difficult it is to get a credit card after college.

---Eric
Another thing you can do to build credit is have your parents designate you as an authorized user. Whether they actually hand you a card is up to them, but it lets you piggyback on their credit rating - assuming it's good. :)

my parents bank with the SSA Baltimore Federal Credit Union and have awesome credit. I'm going to go there today to see what kind of loan i can get as well as a credit card. thanks eric and david! :)

Why not just get a credit card with a $4k limit?

Why not just get a credit card with a $4k limit?
yeah the idea of owning a credit card has been in my head before, but i dont trust myself at all with one. :help

Actually the interest on 4K would probably be better from a loan (vs. a cc).

---Eric

Actually the interest on 4K would probably be better from a loan (vs. a cc).

---Eric


Depending on the type of loan -- if it's a home equity line or something then it will have a low interest rate -- without collateral though i think they'll be similar.

Depending on the type of loan -- if it's a home equity line or something then it will have a low interest rate -- without collateral though i think they'll be similar.
This would be his first credit card. I'm doubting he is going to start with a great interest rate.

---Eric

Oh yeah I agree -- but without a credit history or collateral I don't think he'll get a very good rate at a bank either. :dunno

Oh yeah I agree -- but without a credit history or collateral I don't think he'll get a very good rate at a bank either. :dunno

yeah thats the problem. hopefully since my parents use SSA federal credit union maybe i'll be able to get a somewhat decent rate. who knows they may even cosign, though i wouldnt want them to since i want to build credit.

Oh yeah I agree -- but without a credit history or collateral I don't think he'll get a very good rate at a bank either. :dunno
Without a credit history or collateral he will have a difficult time getting a loan from the bank in the first place.
Typically a bank will approve you for a loan based on you credit history and collateral. They will set your interest rate based on the loan type and amount (usually they have preset interest rates published for the different loans).... I don't see the bank adjusting his interest rate based on his current credit. :dunno

---Eric

yeah thats the problem. hopefully since my parents use SSA federal credit union maybe i'll be able to get a somewhat decent rate. who knows they may even cosign, though i wouldnt want them to since i want to build credit.
I'm not a banker or credit expert, but I believe you will build credit even if they co-sign. CU's will typically offer a slightly better rate than a bank since banks for for-profit and CU's aren't. As a college student, they may even insist that your parents co-sign since you are still financially dependent on them.

Without a credit history or collateral he will have a difficult time getting a loan from the bank in the first place.

That's why i suggested the credit card in the first place. :stickoutt




You will still build credit if you have a co-signer. The co-signer is there only to put up some kind of collateral in case you default. If the loan is in your name, it will be assumed that you are making the payments.

You will probably need a co-signer unless you're working full time at a salaried position. (Or a sales position with a good earnings history).. That will depend on your current debt though. Do you owe anything on your car? Do you pay rent? If not, these things will weigh in your favor.


I would look around at credit cards -- there's big competition among them, you may find one with an ok rate.

Probably the best way to do this is simply have your parents co-sign for the loan (if they are willing). You might also want to apply for your own credit card (with no annual fee). If you don't trust yourself with it, just lock it in a drawer somewhere. Ignore the interest rate at first since you won't be carrying a balance from month to month. Just use the card to establish credit. Once you see yourself needing a credit card then start searching for one that suits your needs. I personally like the ones that give you cash back. Other people like getting airline miles. Choose your regular credit card based on your spending habits/needs (not now but for future reference).

---Eric

I don't think your credit will build if you don't spend on the credit card -- i think it only builds once you prove that you can handle making monthly payments responsibly.

I don't think your credit will build if you don't spend on the credit card -- i think it only builds once you prove that you can handle making monthly payments responsibly.
That's not strictly true. Building a good credit history is based on being able to handle credit and debt. Carrying a balance occasionally won't hurt your credit, as long as you make minimum payments on time. It will hurt your wallet though! Some credit cards can have APRs of 20%!!

Eric - I thought you liked credit cards that offer miles - frequent towing miles!! :stickoutt

I keed I keed.

Edit - I misread what jterp said. I think he's right - you only get a little bit of credit if you are not spending much on it. Maybe just link your cell phone bill. Only things you have to pay for and will stay fairly regular month to month. That way you won't get any surprises on your monthly statement.

www.fool.com is a great site to learn about personal finance, btw.

eastern motors

LOL!!!!!

co-signing is the way to go if you need to do this relatively soon. It would take forever to build credit to the point of them giving you a loan by getting a credit card.

Get one of those Citibank College Cards... the limit is something like $400 so you wont get into trouble ;)

I don't think your credit will build if you don't spend on the credit card -- i think it only builds once you prove that you can handle making monthly payments responsibly.
It doesn't help as much as regular on-time payments but at least you can show you have *some* credit. It can be VERY difficult to get any credit card once you are out of college. I have had companies send me regular credit increases for cards I never use.

---Eric

That's not strictly true. Building a good credit history is based on being able to handle credit and debt. Carrying a balance occasionally won't hurt your credit, as long as you make minimum payments on time. It will hurt your wallet though! Some credit cards can have APRs of 20%!!

Eric - I thought you liked credit cards that offer miles - frequent towing miles!! :stickoutt

I keed I keed.


AAA does have a Visa card (they give you discounts for gas purchases at the pump). :embarrasm

---Eric

It doesn't help as much as regular on-time payments but at least you can show you have *some* credit. It can be VERY difficult to get any credit card once you are out of college. I have had companies send me regular credit increases for cards I never use.

---Eric

They love you in college. They start w/ $400 limit.. and by the time you graduate.... its nuts. I think my credit line was up to like $20k on one card when I graduated.

They love you in college. They start w/ $400 limit.. and by the time you graduate.... its nuts. I think my credit line was up to like $20k on one card when I graduated.
Yes, those companies can be a little shady but at least you can get a credit history established. I remember a group of us applied for cards in college. I had good credit history but got declined. :confused I later found out everyone except for two people were declined. The guy who had no credit history (or bad credit) and they guy with the gambling problem. :eek:

---Eric

Yes, those companies can be a little shady but at least you can get a credit history established. I remember a group of us applied for cards in college. I had good credit history but got declined. :confused I later found out everyone except for two people were declined. The guy who had no credit history (or bad credit) and they guy with the gambling problem. :eek:

---Eric

lol. I used to sign up for cards to get free t-shirts and candy :buttrock :lol

It can be VERY difficult to get any credit card once you are out of college. I didn't realize it can be that hard to get a credit card. I've been getting credit card offers left and right since I graduated college. Granted I've had a credit card since I was 18 so that probably helps.

this is what they offered me - 3 year loan for $5,000 at 8% APR
as for the credit card - Visa platinum card with 0% APR til Sept 2005.