Loan at 17?

[Flipx99 5,000+ posts]

//content.invisioncic.com/y282845/emoticons/word.gif.64b12e39f936af3b4fff38a1c0bd0244.gif
No (decent) bank will allow a 17yr old to sign on a loan.

Though I would highly recommend both your friend and his parents rethink this. $15k is a big loan and relatively big payment for someone with (likely) virtually zero financial responsibility, experience or obligations. Parents are always okay with cosigning for their kids until the kid flakes out and the parents are stuck with another bill they can't pay. Then they get really pissed off when their wages start getting garnished @ 25% for their kid's debt which was originally for a vehicle that nobody in the family owns anymore (since it got repo'd).

Yeah, seen this one play out a time or two.

Could this not be a mechansim for him to establish credit?

I started out with credit cards at 18...perhaps this is a better way?

 

[btdickey99 5,000+ posts]

Could this not be a mechansim for him to establish credit?
I started out with credit cards at 18...perhaps this is a better way?

I did too.... not with a car tho....car came at 20, and I had a lot of previous work experience and built enough credit

 

[dman4486 5,000+ posts]

Could this not be a mechansim for him to establish credit?
I started out with credit cards at 18...perhaps this is a better way?

I am 22 and still do not have a credit card....waste of my time and moneys paying interest

 

[Lingerfelt 10+ year member]

Who takes on the risk of being a cosigner without the ability to fulfill the obligation? //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 

[Lingerfelt 10+ year member]

I am 22 and still do not have a credit card....waste of my time and moneys paying interest

You don't pay interest if you pay on time.

 

[Flipx99 5,000+ posts]

I am 22 and still do not have a credit card....waste of my time and moneys paying interest

I do not pay interest.

If you do not carry a balance, you do not pay interest. It's the best way I know to establish credit. I'd be willing to listen to other ways in which credit can be established at low cost.

 

[Flipx99 5,000+ posts]

Who takes on the risk of being a cosigner without the ability to fulfill the obligation? //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

Ask the millions of folks in foreclosure....

 

[dman4486 5,000+ posts]

You don't pay interest if you pay on time.

yes, but how many people get a credit card to pay on time? most people I have talked to are sitting on a balance and pay monthly:greedy:

 

[duece212 5,000+ posts]

Could this not be a mechansim for him to establish credit?
I started out with credit cards at 18...perhaps this is a better way?

Credit cards weigh in more usually in your credit score than an installment loan like a car so not a bad plan to start out with a few cards. There is such a thing as the "auto enhanced" fico score though that puts more weight on past auto loans.

 

[Flipx99 5,000+ posts]

yes, but how many people get a credit card to pay on time? most people I have talked to are sitting on a balance and pay monthly:greedy:

Me. There...now you know one.

 

[Americanstrat21 10+ year member]

At 17? is he even out of highschool?? What is he doing with 15k? LmAO!!@

 

[dman4486 5,000+ posts]

Me. There...now you know one.

saweet.....I think ill get my first card tomorrow

what do you typically buy (price range) to work on your "credit"?

 

[squeak9798 5,000+ posts]

Could this not be a mechansim for him to establish credit?
I started out with credit cards at 18...perhaps this is a better way?

I'm all for establishing credit via installment loans versus revolving debt. "Kids" will be less tempted to get themselves into trouble that way.

I just think starting off @ $15k is a bit much for someone with zero credit experience.

 

[lilmaniac2 5,000+ posts]

I started out with a number of loans~ 2g

 

[Lingerfelt 10+ year member]

yes, but how many people get a credit card to pay on time? most people I have talked to are sitting on a balance and pay monthly:greedy:

I do as well. Now you know two.

I started with a BP Chase Visa and enjoy 5% rebates on my gas purchases.

$3.50 / gal x .05 = 17.5 cents per gallon

Nice little check at the end of the month.

And for the record, everyone I know sitting on a balance and paying monthly... Is an idiot.