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I am 20 yrs. Old and I am currently living with my boyfriend in our friends apartment. We both have jobs and have been working, but we are living on our own and both of our families are out of the picture as of right now. We are thinking about taking out a loan, but are unsure of how to go about it. Neither of us have credit yet we are responsible. We need to figure out a way to get a place of our own because, we can't live in our friends house forever.
Try talking to a mortgage company or bank. They will fill you in as well as determine what (actually HOW MUCH) you actually qualify to finance... if anything.
A loan for an apartment won't be too substantial, less than $15,000, correct? But, since you don't have credit you'll need someone who has a credit history to co-sign that loan. Otherwise, there's no way you're getting a loan through a bank. The banking industry is no longer lending to high-risk borrowers.Quote:
Originally Posted by zinalouise
If it's not possible to get a co-signer, you could try pawning some valuables you have for a loan.
Why do you need a loan for an apartment? Do you need to come up with the security deposit? Do you need to buy furniture? Or are you looking to buy a condo or co-op?
I don't understand!
Thank you slapshot_oi.
We want to take out a loan because we are currently living on a roof deck of a friends house in a tent. So for the first answer that I got, we're not ignorant OR stupid. Before you assume maybe you should question the situation. I am asking for help because I am not used to living on my own. I come from a good family and I am not used to dealing with every single financial issue that has been coming up in my life, because I never have before. My family is struggling more then any of you might know and assuming that I am ignorant is rude and IGNORANT of you to do.
We would like to take out a loan because we haven't had enough time to save up. It's coming close to fall and I have other financial things that I have to take care of. I spoke with my bank and you can't take out a small loan like we would like too... it is too small. I had no idea that the bank industry is no longer giving money to high-risk borrowers... so thank you slapshot_oi for that information. I am sorry if I sounded rude up above... but no one should judge someone who is asking for help especially if you don't know their current situation. Thank you.
I believe you're getting upset over a line that is in smoothy's signature. It's not directed at you and is in every post they make.Quote:
Originally Posted by zinalouise
Thank you FoxCash. Good to know :)
Yes, I think you owe smoothy an apology. Some of us have specific sayings in our signatures that are not directed at any one in particular. No one assumed you were ignorant or was judging you.
Again, are you trying to buy a condo or co-op or just looking to furnish an apartment and get the security deposit? Have you tried applying for a credit card?
So you DID go to the bank... they turned you down. You should have stated that in your original question. The banks don't turn down small loans, they give small loans all day every day. My wife works in a bank, currently as a loan officer, so I know that to be a fact. They do in fact turn people down all the time for poor credit all the time, even people that make a LOT of money.Quote:
Originally Posted by zinalouise
To be brutally honest, anyone that cosigns for a loan for anyone is a fool, because they will get stuck paying the loan off if you won't. Anyone that's financially savy at all will back that up.
Handouts you aren't going to get... if you can't get a loan to buy a small place you have no other choice but renting a small place, if you can't afford to do that alone you get roommates to share the rent. And nobody is going to loan you money to pay the rent. They all expect to be paid back.
Nobody is or was being mean in this thread... we are just being straight on the advice. You only have one mother and father... and everyone else expects to be paid for use of living quarters. They after all have to pay taxes and upkeep and that has to come from someplace.
Another sad fact is while you know you are a nice and honorable person... there are so many people that aren't that you ALWAYS have to assume the worst... and believe only what can be proven. Most people have been burned at least once before taking that viewpoint. Again, that's the reality of life. You are entitled to what you earn. And the right to have an opportunity to earn more based on your skills and ability. But not handouts.
I went to the bank AFTER I wrote the message. And yes I agree with you, I guess on the internet or anywhere in the world you have to be safe by assuming the worst... but that usually gets you nowhere and doesn't help the situation. You and I have different opinion, I can see that. I earn enough to get by, and I do work hard as well as full time. Please don't feed me the bs about being entitled to what you earn there are PLENTY of people in this horrible economy struggling to get by and they work harder than what they should be earning. I don't want to argue but I do understand what you are saying, it just doesn't apply to me. I guess I just need time to really save, it's hard to be so open minded when you're living the way I am living.
I do have a credit card, and I know how to get get my credit going. But does it take a certain amount of time to build credit before being able to take out a loan? And yet again, I am sorry smoothy. I guess I misunderstood, I am still sensitive about a lot of things going on for me. Thank you for your help.
If you don't think I've been where you are now... you'd be very much mistaken. I've actually spent most of a year unemployed, no money, no job, in a place I could not collect unemployment, and arrainged a deal for room and board in exchange for a few hours labor a day. You are entitled to the lifestyle you are able to support... not what you think you deserve to have. Some people work harder than others, and its usually those who don't are the ones that complain the most. Yeah its tough... but you do what you have to do even if it's a step down from what you are used to. When things improve then you can move back up to something nicer when you can afford it. If that means roommates, so be it... I did that for years, almost 9 years in fact before I could rent my own place much less buy it..Quote:
Originally Posted by zinalouise
You don't assume this on the internet.. or in the real world, any lending institution lives or dies by those rules. From the local pawn shop or loan shark to the Bank. Everyone assumes you might try to stiff them and charge according to that risk.
That's what a credit score is for... this is why credit histories exist. You can't misstate or falsify those. And they are a very good measure of reliability.
You CAN earn good credit AND be poor. Its all about making obligations a priority, living within your means, and doing what it takes if it's a second or third part time job. And knowing the difference between what you want and what you need.
I've known too many people over the years that didn't. You know if that applies to you, I don't.
I can only read what you say... and you can usually see what someone doesn't say as well as what they do in HOW they say it.
There is no right to own your own place... until you have the income and credit rating to get a loan you have to rent. Get some credit... use it properly to earn a good credit history, THEN when you prove you are reliable in a manner that actions over time can prove... THEN you may make enough to qualify to buy something, and when that happens you can find someone that believes you are worth the risk of loaning the money to.
That's how the real world works... and I've been making my own way for 30 years now since I moved out of my parents house to make my own way in life. And while I have made mistakes along the way, I learned from them, and some were very much like what I see you write in this thread... you are reaching for something you really haven't earned yet. And upset you can't have it. It's that exact thing that has caused the current housing problem, and in turn the financial crisis. People expecting too much feeling entitled to more than they are rightfully earned.
In a nutshell, most problems are caused when you don't live within your means. Whatever they are. Hard lesson to learn when you first move out of your mom and dads house. Even if they tried to teach it to you before you left.
Thank you smoothy, and yes it is hard. I am sorry for being rude, it's just a whole lot to get used to as well as work up from. Thank you for your advice and honest opinions. Honesty is the hardest yet most valuable way of being able to understand/learn. Thanks again.
You use it for a small purchace of stuff you actually need maybe once or twice a month, like food (set that cash aside for the bill when it comes), pay it off in full when the bill arrives, don't let it start buiilding interest due. Don't buy what you want... only what you need. And can pay in full at once. Again, small ammounts, not big purchaces. If you can't pay for it now... you don't really need it.Quote:
Originally Posted by zinalouise
There is no substitute for time here. It WILL take some time so you have to get started. You will NEVER want to use ALL the credit you have access to, EVER, A good credit score is as much about showing you are responsible with the credit you are extended (as in show restraint but still use some), as well as paying it on time... every time.
Even as a renter you build credit by never paying late. Assuming its in your name.
I started with a Sears card... before long I was able to get a Visa card... and this was 30 years ago, before they tossed them out like candy at a parade.
Hey no problem.
Yep! It was these same banks that lent money to whoever asked which got us into this sh*t we're in now, so they're making up for it.Quote:
Originally Posted by zinalouise
The loan size is too small? How much were you asking for if you don't mind?
I believe if you make all your minimum payments on time and never carry a huge balance on your credit card (just below your credit line), your credit score should improve after six months.Quote:
Originally Posted by zinalouise
Here's a link to the credit score break-down: My FICO
I realize what you're about to read below contradicts my last post, but I had time to think and came up with another solution.
When you get right down to it, all banks care about is your income and debt-to-credit ratio, credit scores only hold portion of your financial history. Credit scores are used in favor of the D/C ratio because credit scores can be accessed anywhere at any time and only an SSN is needed. Calculating a D/C ratio tells a more complete story, but isn't as popular because is more invasive for the borrower and is more paperwork for the lender.
So with that, if you can prove to a lender that you have a healthy D/C ratio, then they might be willing to lend money to you although you don't have a credit history. It's worth asking.
No problem... many times its best to be direct. Sometimes if you see someone that may be confusing what they wish with what is reasonible... being direct may upset them, but it does get their attention. Trust me... earning that good credit involves developing good financial habits, and being able to set aside short term gratitude in trade for long term gain. And its never to early to do that, or start setting aside money for emergencies... even if its only a dollar or two a week.Quote:
Originally Posted by zinalouise
They eventually become habit and you never notice doing the right thing... except maybe when you see others doing what you used to do yourself. And I know of people that make over 200K a year being turned down for $10,000 loans because of their poor credit history ( late for payments, in collection, etc).
As far as how long it takes? Well, thanks to the recent stupidity of giving loans ot people that never should have gotten them by the banks. The pendulum has swung the other direction. What was an answer even a year ago, can no longer be assumed to be true today. Wish I could answer how long you need... but I can't even guess right now.
I guess the issue is you need to move. So you find the cheapest place you can to rent, you work out a budget, what can you afford, what is your incomes.
I remember starting, using old boxes covered with a old sheet as end tables, a couple old chairs I found being thrown out and so on.
If you are living with someone else, you should have less cost and be able to save money quickly if you are not spending money for other things
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