Loan help

[metallicat]

Allright, I wouldn't mind some tips or comments from some of the financial savy people here.

I am thinking of taking out a loan from the bank. This isn't to make a purchse or anything, but mainly to build some credit. Since I am going to school right now, I don't have a job, nor do I want one. School is my main focus. But my cash reserves are running low, school is getting close to tapping me out. So, I figured that I could take a loan and and kill two birds with one stone. I would be able to build some more credit by paying back the loan on time, and at the same time, have some cash in case I need it. Hopefully my cash would not run out before I start working again in May '04 or so.

Would this be a good idea? I am thinking of a $2000 loan or somewhere around there. Also, do banks just give loans for no reason other than what I have stated?

[ngcsubutterbar]

that is the best way to build credit, make small loans and pay them off quickly. As far as giving loans for just that reason, I really couldn't tell you some banks might and be friendly, others won't, and some might and shark they hell out of you later.

[metallicat]

Well I have credit cards, and have had them for about 3 years. I pay them off every month. And I know that the interest I will be paying is going to suck, but I was willing to eat that if it means I could have some extra cash to keep me going until I graduate.

[Darin]

Without a job how are you aquiring income to pay these bills?

[metallicat]

I have money saved up. I don't have huge bills. I am also living with my parents still while I finish up with college.

[The JoeMan]

It sounds like what you are looking for is a "student line of credit". I would just go to your bank and ask about it. When I was in school I got one through TD for about $6000.00 and, if I remember correctly, I think Royal bank may go up to $10 000.00. I know that's more then you need but the nice thing about these is that, since it is technically a line of credit and not a loan, you only pay interest on what you use. The terms are pretty reasonable too. I know I didn't have to start paying any interest until after I graduated. It never hurts to ask right? Hope this helps.

[metallicat]

Would they grant this to someone that only has one semester of school left?

[The JoeMan]

I'm really not sure. When I got mine I had to do it at the beginning of the semester because my tuition was too high for student loans to cover. The one thing that may hurt you in this case though is that you can only draw funds from the line while you're actually attending school so once you grad they lock the line. Of course you could just pull out whatever you need in cash before they do that. I know I didn't really answer your question but, like I said, it doesn't hurt to ask the bank to find out for sure. It could really help.

[metallicat]

You did good, thanks for the help.

[The JoeMan]

Your welcome.

[vadep]

Banks may be a little on the reluctant side to disperse loans to those who are not employed.

[Barenaked]

I wouldnt do it. The personal loan interest rate is too high.

And you say you have money saved up to pay it off. Why not just use that money to spend with. I dont understand why you need to borrow money and then pay that off with money you already have.

If there is anyway you can get by without taking the loan, then I would just do that. You will be glad you did.

[Darin]

Originally posted by vadep
Banks may be a little on the reluctant side to disperse loans to those who are not employed.

Thats what I was thinking too.


Good luck Metallicat.

[canuckofapeach]

Originally posted by DC Law
. Get a couple of cheap credit cards, like gas company cards or department store cards. Make a couple of purchases then put them away (after paying them off of course...got to spell it out for you canucks. :p )

A gas card and a department store card charge 28% interest here. Stick to your own backyard...

Gotta set you Yanks straight:p


Check your PM Metallicat

[metallicat]

When I say I have money saved up, I mean that I have some cash in the bank still. I don't have a large surpluss of it, just whatever is left over from working last summer when I was off school.

Thanks for all the help.