Personal Loan..can you even get one nowadays?

[Satyr]

yea credit score doesnt mean as much as most really think... i mean you could have a 800+ credit score and have very little credit history or have a 700+ score with good credit history and the 700+ person will more than likely have a easier time getting approved then the higher score guy with lack of history....i only have about a 780 but i have over 12 years of good credit history

Considering that the extent of your credit and the amounts that you owe make up roughly 50% of your credit score, that's not always the case.

For instance, a score of 800+ isn't going to happen if you've only had credit for a few years, no matter how diligently payments were made. Scores that high result from long-term loans that were paid off responsibly and within financial reason.

 

[Satyr]

Just wondering how hard would it be for a 19 yr old to get a auto loan or any loan for that matter? My bro is looking to get a car, his bank is Chase, but hasn't been with them very long.

Going to be pretty tough. One presumes that he has little established credit considering his age, and the bank is going to be weary of lending some someone so young. Additionally, since he hasn't been with them long and because Chase is in heaps of financial trouble, it is going to add to the difficulty.

What kind of job does he have? In school? Family? Details?

 

[2k1cobra]

Going to be pretty tough. One presumes that he has little established credit considering his age, and the bank is going to be weary of lending some someone so young. Additionally, since he hasn't been with them long and because Chase is in heaps of financial trouble, it is going to add to the difficulty.

What kind of job does he have? In school? Family? Details?

Currently doesn't go to school. He works at wal mart as a sales associate, hes worked there for about 1 yr and a couple of months. Also our parents don't have very good credit, pretty bad id say. I knew it would be hard for him just didnt know it was that hard to get a loan these days.

 

[RDJ]

Currently doesn't go to school. He works at wal mart as a sales associate, hes worked there for about 1 yr and a couple of months. Also our parents don't have very good credit, pretty bad id say. I knew it would be hard for him just didnt know it was that hard to get a loan these days.

his best bet is to save up a couple grand for a down payment and get a "gently used" car for 5-8k. that lets him show he can save money (banks like that) and puts him in a car with payments he should easily be able to afford (banks like that too). it will be easier for him and then once he pays that off on time it will be easier for him to get a bigger loan

 

[2k1cobra]

his best bet is to save up a couple grand for a down payment and get a "gently used" car for 5-8k. that lets him show he can save money (banks like that) and puts him in a car with payments he should easily be able to afford (banks like that too). it will be easier for him and then once he pays that off on time it will be easier for him to get a bigger loan

Ive told him the same thing since he already has $1,200 saved up and tax return season is right around the corner.

 

[Satyr]

his best bet is to save up a couple grand for a down payment and get a "gently used" car for 5-8k. that lets him show he can save money (banks like that) and puts him in a car with payments he should easily be able to afford (banks like that too). it will be easier for him and then once he pays that off on time it will be easier for him to get a bigger loan

I agree with this.

Ive told him the same thing since he already has $1,200 saved up and tax return season is right around the corner.

As RDJ said, explain to your brother that a bank needs to feel confident in "investing" in an applicant; essentially, that's what they do by loaning money. Even with 1+ years of job security, that's not going to be enough to counter unestablished credit and little collateral (I imagine he lives at home?). A nice down payment coupled with more time at this management position should be a good formula for a loan come spring time, which would be a good time to pick up a nice deal, anyways.

By the way, I thought Wal Mart has some type of discounting system for loans within their corporation? I think that I have heard of them loaning amounts to employees at lower interest rates, considering that they can garnish wages if you don't pay them back (which is noted contractually). Have him look into that, though it may only be for upper-level positions--still worth a shot.

 

[2k1cobra]

I agree with this.



As RDJ said, explain to your brother that a bank needs to feel confident in "investing" in an applicant; essentially, that's what they do by loaning money. Even with 1+ years of job security, that's not going to be enough to counter unestablished credit and little collateral (I imagine he lives at home?). A nice down payment coupled with more time at this management position should be a good formula for a loan come spring time, which would be a good time to pick up a nice deal, anyways.

By the way, I thought Wal Mart has some type of discounting system for loans within their corporation? I think that I have heard of them loaning amounts to employees at lower interest rates, considering that they can garnish wages if you don't pay them back (which is noted contractually). Have him look into that, though it may only be for upper-level positions--still worth a shot.

Yea he still lives at home.So you think trying would be a waste of time? I will definetly ask him to look into the discount system. Thanks for the advice.

 

[RDJ]

you know the more I think about it, considering it size I would be surprised if WalMart employees didn't have access to a credit union. have him ask about it for sure