Anyone work at a bank or know alot about loans?

[KJW Detailing]

Hey,

So i am looking around and trying to come up with the best plan.

I am looking to get a streetbike. A buddy of mine is selling his for 2500 but i only have 1000 and i dont think that it will be around long enough for me to save up the money and he cant do payments with me either.

I am thinking about going into my local bank, commerce and asking for a consumer loan. i need 1500$. i have no idea what my credit score is b/c the only this that contributes to it is my car payment each month (but only started 10 months ago)...

I currently make about 1400 per month (more when college in out), im 23 yrs old, and i have been at my job for 2 yrs.

I'm not sure what else contributes to a yes or no awnser to the loan from a bank, but i figured i would come hear first and see if i could get any insight!

Also, if i go and they give me a no, does that hurt my credit score in any way?

thanks!

[ScottB]

As a commercial and residential lender let me give you some facts:

1. A loan amount at 1500.00 is likely not profitable to bank, will discuss credit card (cash advance) or overdraft protection line. Dont use all of it, never more than 75% of what is offered.

2. A credit score can change by as much as 12 points for an inquiry. Most are between 6-12 depending on score/ history.

3. Your credit history with only one trade line is usually not sufficent enough for large lending, but may be enough of a basis at smaller credit union to get bike. Hopefully all payments are on time, as even one blemish on a new credit report will tank the score.

4. Most financial institutions find a bike to be a luxury item. As such pricing is usually not very beneficial. Also note because values are hard to determine, they likely will lend to newer bikes and larger dollar units (Ninja, Harley, Hayabusa)

I would however look to a family, friend, or possibly a private loan. You make nice money and should be able to payback in 12 months without hardship.

[KJW Detailing]

1.why wouldn't you want to use the full 100% of a loan?

2. What is a private loan?

3.Yes, all of my payments are on time, i make absolutly sure of that.

4.Do you mean that a bank would prefer to loan someone the money to a brand new bike rather then a used bike that doesn't cost nearly as much?

[Pauly6401]

I bought my motorcycle fresh out of college with a full time job, and only a car payment to make each month. The bank that gave me a loan (financing) made me have my dad co-sign for it, because like Killr said, it's considered a luxury item. It was at a high interest rate too, especially compared to my car loan.

It would most likely be easier to get a private loan from someone, or just keep saving up and keep an eye open for the next affordable bike once you have the money in hand.

[bambo2888]

What kind of bike?

I purchased my bike by getting a new credit card and paying the guy with the courtesy checks that were included (6 months interest free). So i immediately paid the cash I had devoted to the bike initially and paid the rest, interest free, over the next 6 months. It worked out great and i got my bike while building my credit.

Keep in mind I'm 19 and in college, as well.

[ScottB]

1.why wouldn't you want to use the full 100% of a loan?

2. What is a private loan?

3.Yes, all of my payments are on time, i make absolutly sure of that.

4.Do you mean that a bank would prefer to loan someone the money to a brand new bike rather then a used bike that doesn't cost nearly as much?


1. Loans are very different then lines. Lines are revolving and have a maximum amount you can use, as in a credit card. You never want to use over 75% of a line. Loans are written for complete value, and paying them down is only way to reduce amount owed. Sorry for any confusion, as I still feel a credit card is best choice since amount is limited, but should be placed against card with 2000 or higher limit as possible.

2. Private loan is one from family or friends. Can also be from a guy named Guido in the back parking lot, but make sure you NEVER miss his payments.

3. Good work ... certain debts are not reported on credit like electric bill, cable, and cell. If you gotta miss or be late on payment consider these first as wont harm credit unless you are habitual and debt gets tossed to collections.

4. Basically yes. In most cases used items like cars and bikes and boats are depreciating items at a much faster rate than loan gets paid down. As such in a position to lose. Also on newer items, usually loans are higher meaning profit to bank and they are not in it for your best interest (pun).

[Tonya]

Scott I hope you don't mind, but I have a few things to add. As a commercial and residential lender let me give you some facts:

1. A loan amount at 1500.00 is likely not profitable to bank, will discuss credit card (cash advance) or overdraft protection line. Some banks will not even do a term loan (set payment, set rate) for that amount. Dont use all of it, never more than 75% of what is offered. He is talking about any open ended line of credit here... credit card type products. Try your best to say under 30% of your available balance on any open ended line of credit, credit card, overdraft protection. Plus the rates are usually high on these types of products.

2. A credit score can change by as much as 12 points for an inquiry. Most are between 6-12 depending on score/ history.

3. Your credit history with only one trade line is usually not sufficent enough for large lending, but may be enough of a basis at smaller credit union to get bike. Hopefully all payments are on time, as even one blemish on a new credit report will tank the score. A credit union is your best bet!

4. Most financial institutions find a bike to be a luxury item. As such pricing is usually not very beneficial. Also note because values are hard to determine, they likely will lend to newer bikes and larger dollar units (Ninja, Harley, Hayabusa) Yes... the bank will look at the LTV (loan to value) bikes don't hold there value well. So make sure you are not borrowing more than what it is worth. Sounds like you would be fine in this case.

I would however look to a family, friend, or possibly a private loan. You make nice money and should be able to payback in 12 months without hardship.
Any bank will look at your DTI (debit to income ratio) money comming in vs. bills going out. They will look at your current expenses (rent car payment) add it what the new bike payment would be and make sure you are within their guidelines. Every bank is different, but they don't want to see anyone over 50% DTI. That is.... 50% of the money comming in going to bills. They like to see someone with a DTI of less than 45%.
Again as Killr has stated your issue is not really with the bike, it is the fact that you don't have enough credit history. So that is why he is recommend a credit union, smaller bank family or friends.

[KJW Detailing]

01' GSX R 600 is the bike a buddy i work with is selling

ok i'm beginning to better understand what everyone is saying...and maybe what i should really do is just continue to save my money...i mean it is halfway through oct. and the temps in jersey will quickly fall so i wont be able to ride anyway. i just figured this was a great deal so if i could do it i would regardless of the fact that i cant really ride it for 6 months or so. The other reason was that this bike is in fairly good shape for an 01' and has 16k miles...to me its the perfect price for my first bike.

another guy at work is selling his 03' gsxr600 but he's looking for 5500 and for that amount i might as well buy a new bike!

[scottgt]

im 19 and got a credit card with a limit of 7,000 at bank of america

[ehuth1]

when I was 18 I had a $10,000 Yamaha Card with a waverunner and dirtbike on it and 2 $3,000 CC max'd !!.... Man what I was I thinking!!! Your best bet is to do a private loan from someone you know or just sell off some stuff you don't need to make up the difference. CRAIGSLIST!

[bambo2888]

yea, i highly suggest going the way i did with craigslist and courtesy checks.

how much are you paying for the '01? Also, that's a tad high for an '03. I have a 99 CBR, all custom, runs like brand new with 23k miles.

[dengood1]

when I was 18 I had a $10,000 Yamaha Card with a waverunner and dirtbike on it and 2 $3,000 CC max'd !!.... Man what I was I thinking!!! Your best bet is to do a private loan from someone you know or just sell off some stuff you don't need to make up the difference. CRAIGSLIST!


eeek! Don't do that roadrunner!!!! lol

[KJW Detailing]

no dengood1 i will not be doing that haha...

the guy selling the 01' wants 3k but said for me its 2500k b/c were good friends and whatnot.

[bambo2888]

no dengood1 i will not be doing that haha...

the guy selling the 01' wants 3k but said for me its 2500k b/c were good friends and whatnot.


yea, that a pretty decent deal, condition and mileage pending...

[KJW Detailing]

well the mileage is 16k...two owners

the original owner laid down the bike once but the bike wan't moving so its only some scuffed up stuff.

it just got brand new tires and has an aftmarket exhuast...other then that the bike has been kept up on regular maintance and is cleaned somewhat regularly too.