Since I am only 18 and have no credit, I was thinking about trying to get a small loan from the bank to get some mods going and build up some credit at the same time. Maybe try to get a loan for a thousand so I can get an A-Spec kit? Good or bad idea?

 

I doubt they'll give you a loan without credit. Look into getting a credit card...perhaps a store card. My first card was a department store card with a limit of $200. Four years later, I have 4 cards with a limit of $50k total. Bank loan won't help you that much. Also, be very careful because if you don't pay or are late, fees add up.

I assume you can afford to just pay cash for these mods but want to build up credit?

 

Personally I wouldn't do that.

As much as you may want the A-Spec kit and to build up credit, there are other ways to do both. Get a credit card and use it ONLY for gas. As soon as you fill up, go pay it off.

Just my

 

I was going to apply for a student card at chase, to pay small bills with (phone, gas, etc.) But still I wouldn't mind getting stuff for my car and yet build up a little credit. I can afford to get each piece of the kit one by one, but not all at once. I like to keep some money in my bank account just for emergencies.

I get the same exact advice from my parents, but I appreciate your . haha

 

I use my credit card only for gas and like a drink every now and then at the gas station. Pay it off as soon as I get home, so far so good.

 

WOW, 50K in total... do you know your credit score goes down if you don't use at least 30% of that credit!! I'm studing to be a financial advisor, and unless you make 10K/ month, then it looks bad. This means if you want your credit score to stay good, you have to spend at least 15K on your credit cards each month. I would not like to have 50k worth of credit, but I don't know your financial situation, you could be a millionaire (if that's the case, can I borrow 5k for some mods)

 

X2, For me personally ive never had a credit card nor do i want one. Except i have a few dept store cards where i saved a lot of money just to open an account but i NEVER use them.

 

Ditto.
I don't think that is correct-- everything I've read states that excessive credit utilization, i.e. using a higher percentage of one's available credit, is what will decrease one's credit score.
The lower the amounts one charges and/or carries on each CC, the better one's score, everything else being equal.

 

It was just an idea. I just wanted to see what some people would think about it.

 

 

this is the what I read that got me most wide-eyed... not even the OP. please reread wherever you found that and let it be a lesson if you're going into the financial planner/advisor profession. I've had to explain the difference between effective and marginal tax brackets to an 'advisor'. I think you're referring to what Will Y. is pointing to. For example, having 50k in credit available let's say over 3 cards 30k, 10k, 10k. Having 20k on the card with the 30k limit alone is a lot worse than having 10k, 5k, 5k, on each respective card. always about ratio of credit used/avail. on each card

OP: like everyone else says...department store card, esp ones like sears or macy's that give you a 10-20% discount when you sign up for it. pay it off in full, then use it for gas. don't be mad when the creditcard solicitations start rolling in, and don't abuse it either. Another thing, due to the 2009 CREDIT card Act, you may have to have your parents co-sign on it since you're under 21, or you have to prove income. you def don't want your parents having to pickup the tab if you default, so stay on top of it

 

I don't think that's right Bayam0n...but I'm not studying anything about econ...I've just read things online and have put those things into practice. I try to keep it simple...use the card within limits (gas, dinners) and pay it off in full before it is due. Even with just 4 years of history, my credit score was considerably high. It has dropped a few points since I bought my TL, but I have noticed that it is increasing back to its previous high quickly as I am paying the car off on time.

That $50k is between three cards (four if you consider my department store card), and I barely carry a balance. I also have other loans, such as my TL, undergraduate loans, current Masters loans, and future Dental school loans...even though those are considered good debt.

 

Don't buy mods on a payment plan. They lose value the second the guy ships it out the door. Get a credit card and use it wisely. If you want mods take the money out of savings and buy them. Also, do yourself a favor and take a personal finance class. It's a real shame that it's not a required course in high school. I think its because they want the citizens to be poor.

 

Thanks for the advice. It was just an idea, I wasn't really gonna go try an a get a loan. I'm thinking about getting the kit piece by piece cause I don't wanna spend all my money all at once (just incase of sudden emergencies) thanks everyone

 

What it be a good idea if I tried to get a Student Credit Card from Chase?

 

As long as you can prove you are a full-time student then go for it. I had one from Citi when I was a student. The interest rate will be high and the credit limit will probably be low. Just use it for reasonable expenses and pay it off every month. Don't run a balance. Don't get anything that is going to charge you an annual fee.
Make sure you read and understand this before you apply https://www.firstusa.com/cgi-bin/web..._type=appterms

 

It might be better to join a credit union and get one of their student cards. Better interest and better treatment than the banks, Chase in particular.