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post #1 of 14 (permalink) Old 06-09-2006, 09:10 AM Thread Starter
 
Join Date: Feb 2005
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loan request

I applied for a personal loan using lendingtree.com and got a result back today from MBNA..I requested a $6000 loan but instead they offered me a $10000 with a 19% apr and for 90 months..$210 monthly..what would you do?
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post #2 of 14 (permalink) Old 06-09-2006, 09:17 AM
 
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Loan % seems high. How old are you? Are you still in school? Do you belong to a private bank? How is your credit? There are many ways to get a better loan. If your in school or in your early 20's or younger, go for a student loan or a car loan. If your in a private bank, get a loan through them, the percentage will usually be alot lower. And as always, if you have bad credit, then your loan % will jump up. If your planning on using the money for a bike, especially a first bike, don't do it. I would reccomend saving up cash for it rather than taking out a loan. You will end up damaging your bike, and if you wreck it, you are stuck with a loan payment and no collateral to put towards it and nothing to show for it.

Sepias
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post #3 of 14 (permalink) Old 06-09-2006, 11:08 AM
 
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That is not a good loan. Very high percentage rate. MBNA sucks too.

That percentage is based on 10K not 6K also. 6K should bring a smaller percentage but probably not much smaller with them. The percentage in a case like that is based on the monthly payment, your income and probably your credit score if you have one. That also sounds more like a credit card ie, non-secured loan(without collateral). Those will bring higher percentage rates. Probalby do better with the dealership if this is for a new bike.
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post #4 of 14 (permalink) Old 06-09-2006, 02:40 PM
 
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19% When I got my loan (through a local FCU) I got a 6.something percent, for 6 years.
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post #5 of 14 (permalink) Old 06-09-2006, 02:45 PM
 
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My last loan was 0% for the first 6 months, then 7.something for the next five years... I paid it off within 6 months
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post #6 of 14 (permalink) Old 06-10-2006, 07:11 AM
 
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What I do with my credit cards man, pay the full balance everymonth.
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post #7 of 14 (permalink) Old 06-10-2006, 08:08 AM
 
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Quote:
Originally posted by slick1537
What I do with my credit cards man, pay the full balance everymonth.
Ideally, yes.

Anyway, 19% is pretty f'n high.

First thing I would do is go to a local credit union or bank, about taking out a motorcycle loan, not a personal loan. Rate may be lower than a personal loan. If that doesn't work, then ask about rates on a personal loan.

If you have to get stuck with the 19%, I wouldn't take it unless I was able to make double payments, so the interest in the end isn't as bad. But if you pay just the minimum amount, that loan is going to end up costing a LOT more than 10K, especially at 90 months.
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post #8 of 14 (permalink) Old 06-12-2006, 06:16 AM
 
Join Date: Apr 2005
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I went to the credit union associated with the school district I work for and locked in a 4% interest for a motorcycle. Everywhere else was offereing 8%. I wouldn't settle for 19 though. Very high.
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post #9 of 14 (permalink) Old 06-12-2006, 07:04 PM
 
Join Date: May 2005
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+1 Slaps

The personal loan rates are always going to be higher than an unsecured personal loan. A traditional vehicle loan has the item as collateral in case you default, whereas the personal loan is given on your word to repay. Hence the much higher APR.
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post #10 of 14 (permalink) Old 06-12-2006, 08:54 PM
 
Join Date: Jun 2005
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damn, 19% you might as well rack up a lot of credit cards and pay with them instead. Atleast they are lower %. I know a guy who paid for a new 1000rr with 5 credit cards. Hehe, he'll be in debt for the next 20 yrs though, and he doesn't have a house yet. If I do recall, he crashed it in the 2nd month of ownership.
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