Credit Question? - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
Reply
 
LinkBack Thread Tools
post #1 of 17 (permalink) Old 05-08-2005, 11:06 PM Thread Starter
F1 Driver
 
danger mouse's Avatar
 
Join Date: Jun 2004
Location: Bloomington, IN
Posts: 13,894
Send a message via AIM to danger mouse
Credit Question?

Hey I got a question about getting credit, I dont really know how it works, but anyway, I think my computer is pretty much screwed and since its gonna cost more than $150 to fix a outdated computer, i figure id just get a new one. Now the computer I want costs around 1000, but if you get approved for credit you can pay $21 a month. And it has 6 months same as cash, which is perfect since I can easily pay it off in those 6 months.

Now my question is, im 18 years old, do you think I can get credit? What do they usually look at when applying for credit? I've had the same job for 3 years, so Im hoping that will help. Thanks 8)


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
danger mouse is offline  
Sponsored Links
Advertisement
 
post #2 of 17 (permalink) Old 05-08-2005, 11:25 PM
Le Mans: GT Class
 
Join Date: Jan 2005
Location: Columbus, Ohio
Posts: 516
Send a message via MSN to 4casey4 Send a message via Yahoo to 4casey4
Credit Question?

edit


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
4casey4 is offline  
post #3 of 17 (permalink) Old 05-08-2005, 11:45 PM
Le Mans: GT Class
 
Join Date: Apr 2005
Posts: 720
Credit Question?

Yeah. Really fully depends on the credit company and on how much you're asking for.
Kincaid is offline  
post #4 of 17 (permalink) Old 05-09-2005, 05:19 AM
Le Mans: Prototype Class
 
Join Date: May 2004
Location: Ottawa, Canada
Posts: 1,582
Credit Question?

Quote:
Originally Posted by "4casey4"
If you are a college student they will hand you credit (and a free 2 liter of mountain dew to get you to sign an application for a visa card on campus)
haha.........SO true!!

Titanium Grey Mazda3 GT w/ GFX, leather and Sparco pedals
Smokin is offline  
post #5 of 17 (permalink) Old 05-09-2005, 09:38 AM
F1 Driver
 
Join Date: Jan 2005
Location: DC
Posts: 3,147
Credit Question?

Quote:
I dont really know how it works
you want to buy something but have no money. You convince me that you're good for it so I loan you the money. You pay me back over time (or all at once, if you've got the money), and I charge you interest on the money until it's paid back. If you don't pay me back, I break your legs. Although, in the real world a bank or credit card company isn't going to break your legs, they're just going to destroy your credit rating which is probably worse than getting your balls cut off.

credit is really just a non-specific unsecured loan.

How do they know if you're good for it? How does a lender (bank, credit card, circuit city, etc) decide if they should give you credit? They look at your credit history. At 18, you probably have no credit history at all. That is not good, but it's better than bad credit. As was mentioned, you'll probably need someone to cosign for you (like a parent or something). The cosigner is the person the lender will go after if you don't pay. How much cash can you put into the purchase? The more cash you can put down on the purchase, the more likely you are to get credit from these guys. Which looks better to them: an 18 year old who wants a $1000 computer or an 18 year old with $500 in his pocket that wants a $1000 computer?

Quote:
Now my question is, im 18 years old, do you think I can get credit? What do they usually look at when applying for credit? I've had the same job for 3 years, so Im hoping that will help. Thanks
Job is important, as is the things I mentioned above. There's 2 things they really look at: you're ability to pay (i.e. can you pay them back for a loan on a Ferrari when you work at Burger King) and your credit history (when other people have lent you money, have you paid it back on time). At 18, the biggest thing is credit history, so here's my advice: get a credit card. Get something with a really low limit, like $500 or less. Use it, but use it very rarely. Like when you need gas, or once a week for lunch or something. Then pay it off, in full, every single month.

That will help you build your credit history, and will show lenders that you're a responsible person that takes care of their debts.
murph182 is offline  
post #6 of 17 (permalink) Old 05-09-2005, 10:37 AM
F1 Driver
 
Join Date: Jun 2004
Location: Iowa
Posts: 12,421
Credit Question?

I can build you a kick ass computer for like $450 if you are interested let me know.

2.3GhzAMD Sempron
1gb DDR RAM
120GB HDD
DVD-RW
DVD
128MB Video Card
ATX Case with LED Lighting
500 W PowerSupply.
add like $10 if you want a floppy installed. looks like this..

mz3szoomzoom is offline  
post #7 of 17 (permalink) Old 05-09-2005, 11:12 AM
Le Mans: Prototype Class
 
Join Date: May 2004
Location: Ottawa, Canada
Posts: 1,582
Credit Question?

Quote:
Originally Posted by "murph182"
Use it, but use it very rarely. Like when you need gas, or once a week for lunch or something. Then pay it off, in full, every single month.

That will help you build your credit history, and will show lenders that you're a responsible person that takes care of their debts.
Actually........'deadbeats' (people who pay off their CC bills in full without paying interest) always get lower scores and lower limit increases then someone who has an ongoing balance and pays the minimum amount that appears on the bill. This was true for me and my cousin. Both of us had no jobs and were full time students and we started with a $500 limit. I was a 'deadbeat' and he was a lavish spender and made random payments on his CCs (more than the minimum but never full). In a year his CC limit was increased to $2500 automatically whereas I had to ask and mine was bumped up to only $1200 after two years. Then we both got our credit histories pulled and even though I'd had my CC for a longer period of time his score was better than mine on all three credit bureau reports.


So......as long as you aren't in the red and you have more money coming in than debts and you pay off all your bills on time and make minimum payments on your CC you will be loved more than anybody else.

Titanium Grey Mazda3 GT w/ GFX, leather and Sparco pedals
Smokin is offline  
post #8 of 17 (permalink) Old 05-09-2005, 11:23 AM
Le Mans: Prototype Class
 
Join Date: Dec 2004
Location: Platte City, MO
Posts: 1,866
Credit Question?

They like to see that you use the credit you have wisely, not pay it off in full every month. It's been said that a small amount of debt is a good thing. I have an available balance of 23,500+ on three cards, but have a total of 2700.00 on two of them. Debt to credit ratio is important two. They like to see that you can carry some debt from month-to-month (revolving) and make your payments on time.
That you have the same job for three years is great, but your ability to pay is key now. Money down is fantastic, but expect a high interest rate. No credit history is only marginally better than bad credit.

2004 3s Sedan, 5spd, Velocity Red, Kuhmo ASX
Vince8739 is offline  
post #9 of 17 (permalink) Old 05-09-2005, 04:19 PM
F1 Driver
 
Join Date: Feb 2005
Location: Cape Cod Ma
Posts: 2,764
Credit Question?

those guys are right...keep a small balance on your card at all times without paying it off entirely and your credit rating will be much better off


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
Apocalypse is offline  
post #10 of 17 (permalink) Old 05-09-2005, 04:23 PM
F1 Driver
 
Join Date: Feb 2005
Location: Cape Cod Ma
Posts: 2,764
Credit Question?

when applying for a card or store credit it also helps if you have a checking account and savings account


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
Apocalypse is offline  
Sponsored Links
Advertisement
 
Reply

  FMVperformance.com : The site for all your Ford Mazda and Volvo needs > Misc > Lounge

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the FMVperformance.com : The site for all your Ford Mazda and Volvo needs forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome