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Discussion Starter #1
Hi,
I want to finance a 2003 Yamaha R6. My question is how do I do this if I don't have any credit? And how do I get credit? I am 19 years old and live with my parents so how am I supposed to get any type of credit?

By the way my parents wont let me use their credit to finance anything.
 

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thats gonna be tough... start small and get a credit card(it will probably be like20% intrest and $500 limit, but yoou gotta start somewhere) and slowly build up your credit. go to sears and sign up for a sears card or other store credit cards, just be sure to pay the bills off every month, because bad credit is worse then good credit. My firend financed a 2000r1 when he was 19, the whole deal, tax and all no money down, so it can be done
 

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My :2cents:


If you can't pay cash for it don't buy it. Learn from my mistakes...credit is not something to mess with.

As for establishing credit... there are several ways to go about doing so (and I'm sure that some of the more senior members will have more suggestions). I would suggest that you start with something like a low-limit credit card or even a cell phone (if you're not a big phone-talker). The goal is to show a consistent history of paying bills on time and in full. You have to limit your expenditures so that you don't end up with a bill you can't pay immediately upon receipt. Pay your bill in full, on time and your credit rating will improve. Remember, it's a lot easier to screw up your credit rating than it is to build it up so don't be foolish...if you can't pay cash for it, don't buy it.

Good luck. :thumbs2:
 

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Discussion Starter #4
I was told that I would need credit to even get a credit card. That doesnt make any sense. My bank told me this.
 

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mofolife said:
I was told that I would need credit to even get a credit card. That doesnt make any sense. My bank told me this.

Banks are not a good place to start. You're better off going with one of the larger creditors like Bank One.

Are you in college? If so, you should contact your school about credit card offers 'cause most colleges now have their own credit cards, which are specifically for their students and alumni. I've received several credit card offers from my school...I need another card like I need a hole in the head.
 

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dan is 1,000,000% correct. IMHO, if you can't pay cash for something other than a house, you shouldn't be buying it. When you borrow, you pay more for the item than its really worth, and in the case of cars and cycles, they simply depreciate making the whole situation worse.

Buy used, in cash, to start. Good starter bikes go for $1k or less. And I'll hazard a guess that if you're borrowing for the bike, you have no gear whatsoever, making your situation even worse. Don't skimp in this endeavour, you'll be sorry. :2cents:

Credit cards are how I started out, with only one, and now I have a stellar rating. I have never missed a payment or been late; in fact, I've never not paid the balance. If you start using it frivlously, it will take you a long time (think years, not months) to get your credit score back in line with average, and this will hurt all kinds of things:
1) Some insurers' quotes
2) Future credit-based purchases, like a house
3) Job opportunities (some, not all)

Credit is being used in settings you'd never imagine, so fooling with it can be a real strike against you.
 

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Good suggestions, all.

And remember, NEVER allow yourself to get into a position where you have to default on a loan or are unable to pay a bill. That information will go on to your Credit Report at the 3 major credit reporting bureaus and stay there for 7 YEARS. That's right, 7 YEARS. Even if you eventually make good on the bill/loan, the default information will stay on your credit report.

And ANY bad information on your credit report will affect your ability to get loans, sign up for utilities, rent an apartment, get a job (depending on the job). Protect your credit history like it is your good name, which it is. A good name is worth it's weight in gold (or credit!).
 

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Discussion Starter #9
Ok, you want me to pay cash I will pay cash.

Does anyone want to trade thier R6 for my Ninja 250? LOL

I will give you my 250 which has only 5,000 miles on it + $3000 cash for a R6.

Would I be able to get a 2000 R6 in good condition for $4000?
 

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mofolife said:
Ok, you want me to pay cash I will pay cash.
Well, those were just our personal suggestions. I still think you ought to get a credit card to get some credit ratings going. The hardest part is saying, "No, I can't afford that after how much I've already charged this month."

We're just saying, be careful, very careful, or you'll be miserable. Easy to read, and easy to agree, but very hard to do. Monetary discipline is hard for most Americans, simply because they weren't taught it by their parents.

As for the R6 cost, try Cycle Trader online, and a few newsgroups' Classifieds to see what they're going for. Will depend on year, of course, but last year I seem to remember the neighborhood of $5k-$6k being the typical.

Hope the banter has helped some.
 

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Credit

Credit just doesnt build up over night.. I started out by replying to one of those mail credit card thingys that you get.. I just go with the 0% interest ones and defentally pay for what you are putting on your card.. Then close them out.. Ive got pretty good credit being 20.. loans are no problem... Just be wise... Take your time the credit will come
 

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to me this seemed smart.....take out a student loan for 5 grand and get the fixed interest rate at a bank for a 2 or 3 grand loan then calculate how much over the amount of time of the bank loan then pull that much buy the bike used the bank loan to pay back the bank loan and the student loan to pay interest and get a job to pay your student loan interest....like this your credit should be good enough to make a loan from the bank to get a new liter bike when youre graduated college and found a job

my 2 cents
 

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I agree with Dan, if you can`t pay cash, don`t buy it (unless its a house or something, but if you`re a coke dealer I guess you can even do that).

But if you must have somehting brand new, I`m guessing its already been said, but I`m not reading all of this... Find a co-signer (ie: Mom/Dad/Friend with good credit [just make sure you have the money to do this, cause if you don`t make a payment it makes their credit suck too])

Aside from that, good luck, credit is probly one of the dumbest things ever... You can`t buy something exspensive without it, but you can`t get it unless you buy something exspensive to begin with.:rolleyes:
 

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Here is my :2cents: on this question.

I made my last loan payment on my '96 Camry in November, and I cannot describe how wonderful it feels to be able to retain that $270 every month! :D :twofinger :cheers: The payments felt unbearable for the last year (of 5 total) because the car does not look/feel quite as nice as it did when I signed for the loan. Also, when I had a little encounter with a deer, my $500 insurance deductible did not entice me to proceed with the repairs, since I thought that money would be better spent elsewhere. That deductible would be just money spent on the car that month in addition to the loan payment. That was a difficult proposition in the world of mortgage payment, another car payment, and feeding my wife and 4 kids: all the things I acquired after I bought the car.

I am not trying to completely talk you out of financing a new bike because everyones circumstances are different, but you should be aware that life happens after you sign those loan papers. Your degree of satifsaction with your purchase will likely diminish over time, but your payment will not. You have the initial freedom to purchase the object of your desire, but your freedom to spend money on mods, gear, and travel will be inhibited for what will seem an incredibly long period of time.

Oh, and don't forget, you really don't own the bike or car until you completely paid it off. If you fall on some hard times and miss a few payments, the bank can repossess your car, and I'm sure the same would apply to the bike. Just think how that would feel.:crying:

Good luck with your bike shopping decision!
 

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Cash bargaining

I almost forgot a thought! If you pay cash, has it been anyone's perception that you can make better deals with the sales folks? This has definitely been the case in our car purchasing, but I wasn't so sure that would be true for bikes.
 

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kan, i worked at a car dealership for 2 years, we actually gave the better deals to people who financed because of the kickbacks banks give to dealers for loans, im not sure how bike dealers are, but if you finance a bike yamaha or zuki or kawi or whatever is getting all thier money up front anyway, its the bank that you are repaying. your done with the dealer after you sign the papers, they are already paid...:D
 

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Many yrs ago my bank was continually trying to talk me into obtaining a Visa card & once I ran into a situation of where I was some miles away, my flight back home was snowed in for a day or two & all I had left was $6.55 (ideal at the time for a supper) ----- I was in trouble. Another chap (I was at a Certified Wrestlingt Coach training exercise) gave me $10.00 out of his wallet, booked me in a hotel room for one day & knowing the owners if it was over he would pay the rest.

So once home I did take out the Visa (which I only use about once everother month) & just the other yr the bank said if I would change my Visa card to another type I would have a bit of savings & sure enought I had $150.00 marked down for the only cost of that month & of all things it was only $147.75 so they were correct.

So I am not one that needs to worry about a credit card or a loan to buy a m/c or even a truck as I have cash in the bank & in other means ALTHOUGH it has taken a lot of penny pinching & savings to get to this position.
 

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Alright... so advice from someone around your age. =) 18 years old. Perfect credit. First...checking accounts...yes they do build credit as long as you have a decent amount of money in them for your age. Next I would suggest getting some sort of BILL in your name, not neccessarily a credit card, but as some of the others have suggested, something like a cell phone bill. Always ALWAYS pay everything in FULL and ON TIME. This especially goes for a credit card because those late fees will kick you in the a-- everytime. Go for something with a low rate and a low limit. A lot of bigger corporation banks have student credit cards or credit cards specifically aimed for our age with low limits to help start off for credit. THESE ARE YOUR FRIENDS if you are to get a credit card. And once you do, only make a minimum amount of purchases because it's the little things that add up. As for the open a credit card, charge stuff to it, pay it off and close it. Be very careful with this method. Because they build up on your credit reports, eventually it may come to the point that you may not be able to take out anymore credit. So if you do use this method be sure to inform the three major credit report companies via a letter that the account is closed and ask for it to be taken off. Creditors tend to frown upon the method of opening and closing credit cards quickly. I work at a car lease and loan company so I know the ropes of it pretty well. Good luck! =)
 
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