Need Financing Help !!!!

I am trying to finance an ATV, but I am having alot of trouble.

Basically, noone will except me for financing ! /ubbthreads/images/graemlins/rant.gif
Honda had a great financing plan, at 7.9% for 48 or 60 months, but turned me down! /ubbthreads/images/graemlins/mad.gif

So,,,,, I have about $2000 to use as a Down payment on an ATV (Honda Rubicon) that will cost around $7000.

What do you recommend I do?
What would be the best way to go about this?
Are their other places that will let me finance it?
Should I just get a credit card?
Should I take out a loan?

I dont want the interest to KILL me.
and I will need something around a 48 month plan.

Pleeeeease help,
thanks
~John

Without making a judgement, I suggest that you look at why you were turned down. The old saying goes, "using credit is buying something you don't need with money you don't have"

You should get a credit report from the three credit bureaus to see what's up. As a last resort, you could get an equity loan (if you own your house). Good luck.

The only responce I can get from them is lack of credit history.

I dont have a credit card, I only have a couple loans for school. Which I always pay on time.
but nooooo I guess thats not enough.

Im 25, dont own a house, just have a checking account.

"using credit is buying something you don't need with money you don't have"

LOL :laughing: yea,,,,, your point? /ubbthreads/images/graemlins/tongue.gif
Seriously, I can easily pay the payments, they just dont think I can.
Also, I have heard that some places will turn you down, based on WHAT you want the loan for, IE: they say its something you dont need.
Who the HELL are THEY to tell ME what I need and dont need.
They dont NEED 12% APR on my damn school loans,,, but you bet your a$$ they are charging me for it anyway.

Like Malpaso said, find out why they turned you down.

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some places will turn you down, based on WHAT you want the loan for

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If you buy a car, they can reposess it and resell it if you flake out. A used Rubicon may be harder to sell. Hell, it may be harder to find!

But getting back to the 'why' they turned you down. I learned (when I was about 25) that the criteria the bank used was pretty accurate. I went to Houshold Finance to get a loan that I could not get elsewhere. They gave me the loan and I almost went bankrupt.

If you need to pay off a 5000 loan over 4 years, there's an outside chance that you can't really afford it.

It helps to remember that they are not telling you what you can buy. They are telling you that they don't want to risk lending you money.

If you just have to get a loan, you may be able to get one from a credit union.

I was once turned down for a $1500 loan to buy a motorcycle. I was so mad I went down the next day and bought a new $10,000 car. I laughed at the time.

Daniel

It probably the lack of credit history, they won't just take you word for it that you will pay, they want hard written proof, I had to have my parent CO-sign my first loan and CC but since then (I was 18), I have had no problems getting loans or anything else dealing with credit. It is really important to have history, none is almost as bad as bad credit. I am also 25. I have had 4 car loans and have a handful of CC's, I have also fully paid off all loans and pay off CCs monthly. Credit peopel look for consistency and proof and they then add it up and look at risk...none=risk.

what is a better chanve of a low APR? a bank or a CC ?

my lack of credit history must be the reason, sence 2 of them said I had positive credit,,,, just not much of it lol

A loan is going to have a lower APR im most cases, a credit card may give you a lower intro rate but read the fine print, unless you plan on paying it off in 90 days or 6 months, you will be paying out the nose. You also need to be careful not to try to do too much at once, everytime a creditor accesses your credit, it lowers your score and you will have less of a chance. My advice would be if you are positivily sure it is in your budget to have a family member cosign, but remember, any mistakes made are reflected on yours as well as their credit. Its a touchy subject but if you pay that off, then creditors will see you are reliable. Also get a credit card, keep it, use it and pay it off every month, carry a balance every now and then. Some tips to get credit, its up to you whether it becomes good or bad credit.

Get a credit card for a mass retail chain. Something like Best Buy or Sears. Buy something and pay for it by making the payments. That will establish a credit history.

Wells Fargo has an educational loan program. Not sure if they have a dorect loan program.

I would not use a credit card to pay for this item. The interest is too high.

If you own a car maybe you can get a secured loan from your bank.

You might even try buying one used. There are great deals in used goods sometimes.

Fin

The lender must give you the specifics of the turndown in writing within 30 days. You can use that letter for a free credit report from the appropriate credit bureau.

Go to creditboards.com. They have several forums (general credit issues, mortgages and automobiles) and lots and lots of people who can direct you to a good source for a loan that you need.

First you need to know if you have bad credit or not enough credit (or no credit) by looking at your reports.

Save up and buy it with cash. Don't pay interest on depreciating assets...

Also, note that being able to afford the monthly payments does NOT mean you can afford the purchase. /ubbthreads/images/graemlins/wink.gif

Mark

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Minjin said:
Save up and buy it with cash. Don't pay interest on depreciating assets...

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I agree. You might as well start using $5 bills instead of toilet paper. Find a good used ATV...

thanks guys,,,

I will be talking to my bank, and the credit union in the next couple days.
I know that its a LACk of credit history, not bad credit,
the only credit i have is my school loans which are always payed.
been doing that for 2 years now, which is what REALLY pisses me off. why is that not enough?

My father could co-sign, but his credit isnt all that great, and he already has a couple loans,
I dont think he would mind signing, but they may not except him as a co-signer.
I will be asking about that also.

I have heard that using a CC is good, just to get a good credit history,,, but you are always loosing $$$ doing it.
buying things on it, that you dont really need to, just to get credit,, then having to pay interest.

and WTF is this crap, that if you ask ppl to look into your credit,,, to detirmine if they will accept you or not,, and it COSTING YOU POINTS??????? WTF !!!!!!!!!!! why dont I just bend over now....

save up and buy it..... find a used one....

well,, while those are good ideas,,, not for me..

one, if i save up for it,, it would be WELL over 6 months to save for it,,

two, I HATE used stuff. Buying my truck used made my guts hurt.
An ATV is even worse,,, ppl buy those either to use for hard work, or to beat the hell out of.
yes, there are exceptions, but good luck with all that..

This is just something that I feel will last me a long time, and that I really want new, knowing exactly what it has been through etc.
Plus, I want the 2005 model,,, not easy to find used /ubbthreads/images/graemlins/wink.gif

You can get 1 free credit report per year from all 3 agencies here. Does not include your credit score though. Though from the looks of it the Southern states can't get that until June and the Western states until Sept.

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and WTF is this crap, that if you ask ppl to look into your credit,,, to detirmine if they will accept you or not,, and it COSTING YOU POINTS??????? WTF !!!!!!!!!!! why dont I just bend over now....


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It's a sign that you are possibly in over your head, and applying as much credit as you can so you can default on all of them at once. Think 20 credit cards with a 5K limit on each. That's $100K of credit that you might not be able to pay back.

Don't forget, if you don't want to play by their rules, you don't have to play. If you do want to play, it will be by their rules.

School loans are frequently discounted as a credit reference because the gov will not usually report it delinquent until it's reallll bad.

The suggestion to save up and pay cash is the best advice you've ever heard. I mean it. If you get in that habit you will almost always be in good shape financially. You'll have what you can aford and you'll be getting the equivilent of a 10% discount. Think about it. 7.9% compounded for 10 years is about 10% of the total price. Would you rather pay an extra $700 for that ATV and get nothing in return?

Lets make sure I was clear. The suggestion to save up and pay cash is the best advice you've ever heard. It's better than that advice your dad gave you about staying away from teen-aged girls. It's better than the advice about flossing. It's better than the advice to "walk into the light".

If you just have to "build credit" a steady job and verifyable history of payments is a good thing. If you get a credit card, buy as little as possible and pay it off every month. Some folks suggest billing your cable to or internet to the credit card and then shredding it. That gives you a charge every month and it's a known amount so it's easy to stay in control of it.

Daniel

Daniel, and others.

I want to thank you all for the help, and advise.
Dont think that I am not listening and taking it all into consideration,,, I am !

I dont mean to rant so much, its just been a few frustrating days.
Didnt expect THIS much trouble with financing.... heh, you guys talk aobut NEEDing it? its a good thing I dont want this money for somthing I NEED. /ubbthreads/images/graemlins/jpshakehead.gif

"""Would you rather pay an extra $700 for that ATV and get nothing in return?"""
Well, you do get something in return...
You are basically renting $$$.
For the extra $700. (its probably more, but we will go with that) ... I get to "own", use, and PLAY with this wonderful machine, much much sooner than I could if I were to save up all the $.

And I DO understand what you mean about just paying for it, I hate owing money, and agree with you, thats why i dont own a Credit card !
But, theres times its called for,,,
The way I see it, its around $110 a month, I can afford that, and even afford to pay over that most every payment.
When I look at it that way, $110 a month doesnt seem all that bad for the product im getting out of it.
Now, yes, I could total the thing in a week, and owe $5000 for something I dont have, yes, that would SUUUUUUUUUUUCK.
But, it would only suck alittle more than saving for years,,, buying it with cash,, and then crashing it. /ubbthreads/images/graemlins/wink.gif actually, that would piis me off worse lol

hm, neat idea about putting something like a TV bill on the credit card.,.. but
wouldnt you still be paying interest on that? you would be buying your credit history /ubbthreads/images/graemlins/frown.gif

I look at credit every day since I am in the finance profession. There is a lot of solid advice here jt. For the most part, credit scores are a very detailed statistical calculations of the risk/chance that you will end up 90-days late on a debt. They are VERY accurate and checking credit will lower a poor score a lot more than it will a good score. It is showing potential creditors that you are looking for more debt, which sometimes shows desparate patterns and signals trouble. Then again it is designed for you to be able to compare creditors, but it works best if you do it all at the same time. Also remember that credit score doesn't mean anything when you don't need it, but means everything when you do, so my advice is to get educated on the details of how it works. It will save you thousands upon thousands of dollars through your life.

Since you really want what you want, it looks like you are exploring the right directions if you 'really' want to get it on credit. Your local credit union has small loans like that but be prepared for a higher rates because of the type of item you are financing. I looked up one of the three CUs that I have and their best new auto loan is 3.75% for 72 months upto 110% of the Value. BUT an ATV is probably catagorized with boats and tractors etc which is 10.5% Keep in mind that these are their BEST rates for high scoring credit and this is a VERY low rate CU. Your results may vary and you may have to build up your credit limit first.

Some of their credit card offers are 0% for 12 months and then 9.9% after that, so the blended rate would be a lot lower. Especially if you paid it down a lot in the first year and stayed the course to pay it off in three or four years. It would also build your credit score, big time.

Like Gadget said, HFC type financing AKA Finance Companies or Hard Money Loans are diguised in things like furniture and stereo type loans with ZERO payments etc. These score adverse on your credit and are really hard to pay down. It's all numbers and statistics!

When and if you get to the enviable point where you can use that rule of 'Use cash for depreciating items and credit for appreciating assets' you will be on the money train fast track. Way too much to discuss and debate there, but still a sound strategy for many situations. The co-signer idea is also very good as a last resort for good credit but the person helping you is taking a lot of risk. I have seen a lot of good hearted people get their finances messed up by signing for a friend or relative and then getting surprised with derogatory items on their report when they need to get more credit for themselves. A short term plan to refinance the debt or sell the item might help it make more sense. Even so, it's risky for the relationship and the pocket book.

Using the CC can be very good if you can get a good one, to self monitor by setting up a payment schedule and sticking to it. The problem is that it's very hard to be that disciplined and many people have those good intentions but not the will power. CCs are not my line of expertise. If you do find a good rate on whatever financing that you end up with, it will most likely still reflect your risk level and will improve over time. You can probably refinance it in six months with a different card and improve on your situation but I doubt they will give you as large a credit line as you want. I'm not an expert though. Beware, once you show them you can pay they will throw money at you. Therein is the challenge especially for the un-initiated.

By the looks of it, [your now infamous picture /ubbthreads/images/graemlins/smile.gif] you have aquired a lot of lights so you can probably build up some funds fairly fast. If you're impatient to save and motivated to get your ATV, IMHO, by far the best thing for aquiring personal items while you build up your credit, is to find a different line of work or promotion, that has more responsibilty and earns you more money so that you can get what you want faster. Sometimes a strong motivation is the impetus for bigger and better growth. 'A mind once stretched' is a quote I like. It's hard to go back once you realize you have moved forward. But I've went on too long, so I'll just move on... Anyone have an Arc AAA Premium CPF Limited Edition they care to part with?? /ubbthreads/images/graemlins/grin.gif

Not my lights !!!!!!!! NOOOOOOOOOOOOOOOOOOO /ubbthreads/images/graemlins/ooo.gif lol

EXCELLENT infomation CromagNet !!!!!!!! /ubbthreads/images/graemlins/bowdown.gif
thanks alot !!!!

I will have to look into the credit card stuff more, you have a point, if I have to finance it anyway,,, why not on a CC, which will boost my credit record well.

I just didnt think I could find one that had a fairly low APR after the introductory time.
If i can find one that doesnt jump WAY up after that intro time period, I might go with that.

Anyone know of a good card, or plan thats going on now?

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hm, neat idea about putting something like a TV bill on the credit card.,.. but
wouldnt you still be paying interest on that? you would be buying your credit history


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This is where doing your homework pays.

Many (but not all) credit cards charge no interest if the previous month's balance is paid in full before the due date. So you charge $25 for your cable bill. You get the bill on the 1st and pay it immediately. The intrest is $0. If you are running short of money and only pay $21 you will pay intrest on the whole $25 for the whole month.

Watch out for variable rate loans on something that you'll be paying off for many years. We are at record low rates, so the variable rates will go nowhere but up.

A fun trick is to get a credit card with a low limit, say $500. Instead of paying cash for a large purchase ($450 for your car's tires, for instance), charge it AND send in a payment for that amount the same day. Don't wait, or you might spend part of that $450 on something else. Do the same thing the next time you need a large purchase. Within a few months expect a letter saying they've upped your limit. A lot.

Daniel