Contour Enthusiasts Group Archives Forums General Common Interests Question about Credit lines?

Hey guys, I am trying to get a small boat. I have a good job now and I can afford to get one. I have really good credit with no marks on it. We went today to our local bank for a boat loan and we got turned down. My friend is 18 doesnt have very much credit but I dont think that it is bad. What places online approve just about any decent person? The loan amount is only gonna be for $4,000. This bank said that in big banks like them, they are really strict on what they take and what they dont take. Also, is my credit getting jacked up because of me applying for these loans? Thank guys.
Joe

I am bummed...I just moved to Florida and I need a boat...

Do you have any available credit that shows on your report, having no blemishes doesn't make your credit good. A bank or loan company wants to see some kind of past history that shows you have had loans, credit cards, or charge accounts and have paid them dilligently. Also beware of online loan sites, they can get you into trouble if you arent'careful. I prefer to be able to read my loan contract on paper in my hand before i agree to anything.

At 18, a personal loan for $4,000 is not at all easy to get. It's not impossible at all, but not easy. No credit is at least as bad as bad credit from the point of view of a bank.

Personal loans are the hardest to get, because at least with an auto loan the bank owns the car and has something in case you default on the money. WIth a personal loan, they've got nothing except your word and past history to rely on.

An online bank (which I would hesitate to recommend anyways) would be even less likely to give him a loan because not only are they giving money to someone with no credit history, but they can't even see who they're giving it too -- for all they know they're giving it to some homeless bum on the PC at a local library.

He'd have much better luck getting a credit card with a $4,000 limit than a personal loan. And he'd be building some credit history at the same time. Do well and he'll have a credit card limit that he can literally buy a home with (if you were that stupid) in a few years.

I started at 17 with a $1,000 limit and by the time I was 21 I had a limit of $75,000 on my cards.

Well I am 20 so I should have decent credit. I have a card with 4k on it but the bill gets sent to my mom back at home. She cant know about the boat..lol. Anyway, we applied to one more place with a local branch. We are trying to take a boat loan out so they should have the collateral. We both could take out personal loans in the split amount since its going to be both of our boat....

Damn dude, is that a $75k limit on one credit card, or do you mean all of your cards combined? How did you do that, did you keep requesting credit line increases? Seems like whenever I apply for a credit card initially they low ball me, then I immediatly apply for an increase and they give me a much larger limit! Do you carry over balances from month to month or just pay them off? I generally pay them off, maybe thats the cause for the lower limit!

That limit is over 3 cards -- Visa, Mastercard, and Discover. Discover I hardly use, but they were the only ones that would offer me credit when I needed it at 17, so I stick with them out of loyalty.

I put major purchases on them, like tuition, travel, etc, and pay it off over a 3 to 4 months even if I have the money to pay it off. The cards usually prefer if you actually don't pay it off immediately. If you pay it off at the end of the month, not only do they not make any money on the deal, but you really didn't use "credit" you probably just used your card in place of money you already had. Paying it off over 2 or 3 months shows that you can actually borrow money and pay it back over a period of time without missing a payment.

It's worked for me. I have an exceptional credit rating. When I got my apartment some time ago and they ran the credit check, the leasing agent said he'd never seen anyone have as high as score as me, let alone someone that was only 21.

Where in Florida did you move? I would suggest going to the local Credit Union. There is usually a small membership fee, but the rates are great and they very rarely turn any one down.

I am right outside of Orlando...

Each time a bank or finance company pulls your credit, your credit score decreases...how much? I'm not real sure, but if you've only gone to two places its not really gonna make a difference(you can shop around). I'm assuming the place you want to by this from doesn't have financing? Usually dealers know the easiest way to get financed...obviously they want the sale. Most places(dealers offering financing) go by credit "score" rather than by the actual report nowadays...its quicker & they don't have to anylize your credit history. Its also a way of determining how good of an interest rate you can achieve...higher your score, lower the rate

Also if your credit has been pulled multiple times (more than say 3-4) w/in days...its gonna look suspicious, as though you are desperate & know one will offer you credit