View Full Version : loans
02-27-2004, 08:38 AM
do u think its possible for an 18 year old with no credit and no co signer to get a loan for a vehicle or equipment?
02-27-2004, 08:47 AM
Depends on a couple of things, one what bank/credit union you have, make sure you go in and talk to your bank/cu people first and see what they tell you. Second, do you have any bad credit descisions yet, like late pays or anything else? You may have to build credit some first, what do I mean, I mean get a store credit card or a regular credit card and do not keep a balance on them, just us them for fuel once and then pay it off, or buy a computer mouse and pay it off, this will show you as having great credit. Also look at the dealer for credit, they have a lot of 12 months, 6 months Same as cash deals right now. Hope that helps some.
02-27-2004, 08:51 AM
As a 33 years old,(never thought I'd say that) please let my experience persuade you not to.
At your age,with no credit,no bank is going to sign a loan for you without a co-signer.So,your next option is a fast loan company.One might give you the loan,but your interest rate is going to be a staggering amount.Please stay away from loans as much as you can,except for the purchase of a home.At your age,if you were to make $8 an hour and you took 15% of that amount and placed it in a high risk IRA or mutual fund account,you'll have about 6-10 million dollars when you get ready to retire.
You'll be a millionare before you reach age 40.Right now,40 seems like a long time,but you'll get there before you know it.
You have the chance of a lifetime since you're so young.The decisions you make now, can and will, greatly influence your future.I can't stress enough for you to stay away from loans as much as you can.Buy everything cash.No credit cards either.
We live in a society that wants quick gratification.We want something and we want it now.Look around you.Everyone is working a job they don't like and they're living paycheck to paycheck.
So,if you want to get into the lawn and landscape business,that's great!It's fun and challenging.Do yourself a favor though,RUN AWAY FROM LOANS AND BUY CASH!!!:)
02-27-2004, 09:46 AM
there is no way i can pay cash for a truck i desperatly need or the new lazer z i have paid cash for everything so far and i owe nothing
Someone will loan you the money.
Is it a wise decision to borrow money. NO
But to each his own.
Hope all goes well for you.
Only experience form our mistakes will teach us.
02-27-2004, 09:56 AM
The only possible way a bank would give you a loan on a vehicle is if you made a large down payment. I was in the same situation you were in, but I was approved for the loan because of the large down payment. Just be extremely careful. One bad year and you could go under.
02-27-2004, 10:06 AM
If you've decided to seriously pursue this business full-time I don't see anything wrong with you getting a loan.If you don't have any bad credit and can show a loan officer some consistent cash flow you might be able to borrow a small amount of money.If you pay it back on time,or better yet before it's due,then your borrowing power will be stronger,and on and on...If you can't get a loan would your parents co-sign for you?
Regardless,I encourage you to proceed slowly.Since you're so young you may decide to pursue a different career so don't get in too deep until you're sure this is what you truly want to do...long-term.I don't see anything wrong,however,with you trying to grow your business and establishing credit in the process.Good luck.
02-27-2004, 10:16 AM
"If you don't have any bad credit "
Around here, I've always heard no credit is worse than bad credit. Don't know. Never needed any.
02-27-2004, 10:17 AM
If you can't pay cash for the truck,then do without or get a USED truck.
Let me make sure I have this correct.You want to buy a new truck and Lazer,of which both depreciate in value at a rate more than any other thing you can buy(excluding boats and sea doos),and you want to borrow money to do it?
Where are you working now?How many clients do you have now?Did you think about what the insurance is going to cost you for that new truck?Then your liability insurance for your business?How about taxes,SSI,replacement costs,maintenance for your truck and equipment,tags?That's just name a few things.
I honestly have your best interest at heart.If you can't pay cash for a used truck then how are you going to pay for all the other expenses that come along with it?What about the Lazer Z?Can't you buy a used one?
This is my last post concerning this.I can't make you do anything.I can only try to keep you from making a big mistake.One that will haunt you for years if you can't keep up the payments for these things.
02-27-2004, 10:48 AM
I don't think he should go out a buy a new truck,either but don't see anything wrong with him trying to borrow a few grand to buy some decent,reliable landscaping equipment especially if he has a reasonable number of customers.
02-27-2004, 10:55 AM
I'm 19 and in the same boat. Need a ZTR and trailer but have no dough and no credit. I just got a secured visa card, but have only made one payment so far. It just doesnt happen as quickly as I need it to. I applied for, and can get if I wanted, A John Deer card, (I have a co-signer), but the risk just seems to high for me to justify it! Thats almost $13k in equipment! Miss or make one late pay because of a bad month, and that would not help my program. I can understand your need for the mower, so I just recommend you tread lightly if you decide to go that route. :)
I think it would be best for you to get in the habit to save first and buy later. Many people get in the bad habit at a young age obtaining credit for things and before they know it, they have more debt than they can handle. The only thing I use a credit card for it to buy gasoline simply because its faster and I can keep track of that expense easier. I'm from the old school and don't like the feeling of owing $ to people. On the other hand, I do reccommend building credit, but at a much slower pace and spending less amounts of $ and making sure it's paid off on time.
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