Line of credit

[silbergrau330]

Hey all,

Well Im looking to buy a bike at the end of the season (prob find a better deal, have more to put down). Im looking to buy a used GSXR 600 or something similar, and right now I have about $2000 that I can dispense. Since that is clearly short of the 5-7500 I will need (minus insurance, and gear), Im interested in taking out a line of credit. Im 20, no credit cards, no previous borrowing, what will be involved in acquiring a line of credit? What is the typical term of a LOC? Any info would be much appreciated so I have a little heads up when I go into the bank to get some more info!

[Thaco]

are you a student? that always makes things easier... most banks require a minimum HOUSEHOLD(yes you can include your parents if you live with them) income of $30000/yr as for term, there is non, most are minimum x amount of $ or 2% of balance owing per month, it's revolving liek a credit card where you can pay back and take money off of it as you wish... but it (generally) has a much lower rate than a credit card.

[lint]

A LOC remains open for as long as you want and has more flexible repayment options than a tradtional loan. But you're 20, have no credit cards, no previous borrowing= no credit. You may have difficulty getting an unsecured LOC and will most likely need a co-signer.

Of course, this begs the question, did you pay for an '04 330 with cash?

[silbergrau330]

Originally posted by lint

Of course, this begs the question, did you pay for an '04 330 with cash?

I sold my testicles and my soul in order to purchase my car.

Yes I am a student. So basically, only option is to have someone co-sign, as my credit is non existent? Is it a flat rate for interest, or is it compounded over the payment period ie. I take longer to pay back, more interest (sorry but Im new to borrowing/lending/debt)?

[silbergrau330]

Originally posted by lint

Of course, this begs the question, did you pay for an '04 330 with cash?

Now buy my 17" AC Schnitzer Type II's

[lint]

Originally posted by silbergrau330


I sold my testicles and my soul in order to purchase my car.

Yes I am a student. So basically, only option is to have someone co-sign, as my credit is non existent? Is it a flat rate for interest, or is it compounded over the payment period ie. I take longer to pay back, more interest (sorry but Im new to borrowing/lending/debt)?

As you have no credit history it's going to be difficult to find someone to lend to you without a cosigner or some other way to secure the loan.

A LOC will have a revolving interest rate, tied to prime. The longer it takes you to pay off the balance, the more interest you pay. There is no compounding because it's not a fixed amount you're borrowing. You just owe X% of interest on the principle you have outstanding each month. You make payments whenever you want. Oh your credit situation also means that you're not likely to get a good interest rate either. Probably the prime + 4-5% range.