Got pre-aproved for a line of credit for 20g's

[Adrian_Visser]

Dude don't do it. What is the interest hey offered, prime plus 1? prime plus 0.5? It ain't worth the interest. If you are serious about the mods save your money and buy them when you have cash in hand and not before. You never know what's going to happen tomorrow and paying interest sucks.

[Stanley Rockefeller]

what if I get it and not draw from it....will it affect my credit rating?

nobody knows the answer to this????

also, even if I dont' use it on my ride....isnt' it always helpful to have the extra $ "just in case" I need it in the future?


again, thanks for the help, your input is appreciated :)

[Todd Black 88]

Don't mod on credit.

[blefevre]

Ugh, things with interest are good for two things. An education and a house.

[Todd Black 88]

Yep, it was supposed to go under your post on how much you spent originally. Then ninja.

[Massimo]

Everyone should say no to credit! Unless you are making a reliable investment, E.g house. Even then you can loose out like the GFC.

Save your money I do not have any credit. I own my car, I own my phone, I own everything I have. The only type of credit I have is my rent, and my internet as they do not let me pay up front.

There is nothing good about credit no matter what your argument is, at the end of the day you are spending more then what the actual item is worth.

Instead of taking the 20g why don't you setup a high interest account and deposit the same amount every month that you would with the loan into this account.

Then you are not paying more then what the item is worth. Actually you are paying less then what the item is worth because the bank is paying you interest.

Let’s give an example.

If you where to get a lone of 20,000 over 5 years at an interest rate of 6.7% you would be paying back the bank $23,549 at $362.28 a month. (This is a conservative number as most personnel loans are around 10%)

But if you were to put in $1000 into a savings account and then deposit $362.28 a month at 6.7% for 5 years that would equal $27,126.31 that is divided into $22,720 of invested money and $4,406.31 of interest from the bank.

That gives you an extra $7,126.31 over the loan or 35% more cash to spend.

You would have to be crazy to accept the loan.

[dkbmxer002]

you are a fucking moron if you take a 20k personal loan to mod your car.

[Stanley Rockefeller]

nobody knows the answer to this????

also, even if I dont' use it on my ride....isnt' it always helpful to have the extra $ "just in case" I need it in the future?


again, thanks for the help, your input is appreciated :)

any input on this?....

[Todd Black 88]

Its not a loan people its a line of credit.
No cost unless you draw off of it. You can keep th LOC, and never draw off it if you want, and it doesn't cost you anything.

[Todd Black 88]

I have 2 loc accounts. One is ahomeowners loc at prime rate interest and one is a personal loc at prime plus 1%. Neither of them cost me anything untill i draw off them.

[Massimo]

Its not a loan people its a line of credit.
No cost unless you draw off of it. You can keep th LOC, and never draw off it if you want, and it doesn't cost you anything.

Yes that is true it is like having a credit card with out the monthly costs. But at the end of the day it is a form of credit and nothing good comes from credit.

[Stanley Rockefeller]

Its not a loan people its a line of credit.
No cost unless you draw off of it. You can keep th LOC, and never draw off it if you want, and it doesn't cost you anything.

BUT....will it affect my credit rating if I never even draw from it??

I think of it as like the student loan I had in university that's been paid off already. It helped my rating, but in this case, will it hurt me for just having it?


is anyone even reading this question? or do they just skip over it and reply to my orig. question?

[Todd Black 88]

Lots of good can comr from credit if managed properly.
In my neighbourhood unless you can save 900k dollars, you buy your house on credit.
I was a little short so i have a mortgage.

[blefevre]

I would think it would effect your interest rates on future loans. They would see it as an asset that you have and count that against you. Sort of like if you have a credit limit of 20k on credit cards and go to get a mortgage with only a few percent down. They might increase your rate just because they see the extra "credit" you technically have access to. This is just what I heard from my realtor. I do not know what it does to your actual credit score.

[blefevre]

Lots of good can comr from credit if managed properly.
In my neighbourhood unless you can save 900k dollars, you buy your house on credit.
I was a little short so i have a mortgage.

Yep, good credit is a good thing.