Student Loan?
 

Hello, im 20 years old and new to the bike scene. I have read a lot of posts and decided that the best route to take in getting my first bike would be to get a loan. Now, I cant just get any loan because of my poor credit score, so thats when I thought of the student loan. I figured since im a full-time student it wouldnt be a problem. I applied for a $5000 student loan at loantolearn.com. I did some research on them first of course and they seemed pretty good. The APR is from 7% - 11% for the $5000 loan (I think its the lowest loan they offer) and it can be payed in 20 years. Also, as far as I know it could be used for just about anything "school related (computers, electronics, etc.)"... So anyways, I got approved for it and I just have to complete some additional application papers for it. What are youre opinions on this kind of loan? Anyone apply for one of these before? How does it work exactly? Will I receive a check or money transfer to my account? Will they monitor what I used the money for? I could pay it off sooner right? Thanks!

RE: Student Loan?
 

you say bad credit...if you don't mind...what is your score (beacon/fico/you know the number between 350-850 in case you weren't sure)

RE: Student Loan?
 

No clue... but im thinking of using freecreditreport.com. Should I try that? Thanks.

RE: Student Loan?
 

try www.annualcreditreport.com. you get to see your score from all 3 credit bureaus (transunion, experian, equifax).

RE: Student Loan?
 

Ok, thanks! I am doing it as we speak... hopefuly I get a quick response?

RE: Student Loan?
 

yeah.. you'll see your score right away! :)

RE: Student Loan?
 

Well, this cant be good... it doesnt seem to identify me. I was using AnnualCreditReport.com. No report came up, could it be that I just havent built up my credit yet? I have very little credit if any.

RE: Student Loan?
 

ok...Chris...no report came up or just no credit info associated with your Name/Address/Employment ?

RE: Student Loan?
 

Yes, unfortunantly it looks like its no credit info associated with my Name/Address/Employment. Suggestion?

RE: Student Loan?
 

go to whatever bank you use and they can run a credit report for you.

RE: Student Loan?
 

Oh, great. Thanks. Ill check that out tomorrow.
So besides the credit report I got the info on the loan I was approved for:

• Loan Amount: $5000
• Origination Fee: 7.00%
• Interest Rate: 11.90%
• APR: Non-Deferred: 13.07%
• Loan Term: 20 years but I plan to pay it in 3 years or less.

What do you guys think? I believe that in 3 years it would total about $6000 / $160-Monthly (not sure)

Thanks for your support and suggestions!

RE: Student Loan?
 

with little or no credit, 11.9% isnt all that bad. pay as much as possible asap to kill some of that interest. i would go for it.

RE: Student Loan?
 

Well I work by this rule...If I can't afford it, I don't buy it. I wouldn't put myself into debt for pleasure. That's my opinion, but many work in reverse. Do what is best for you and weigh your options. Good Lcuk in your decision.:D

RE: Student Loan?
 

Yea pitsvtec, you are absolutely right. I figured, I could afford a $4000 bike right now. I would take the $5000 loan and save the left over in the bank. With that left over plus what I had already saved I would be able to pay off the bike if I had to. Of course if I did that right away it would leave me dry in the bank, this is my reason for the loan. Thanks for the advice!
Any other opinions on the loan specs I posted above? Thanks!

RE: Student Loan?
 

Do you plan on buying used?

RE: Student Loan?
 

Yes, I plan on buying used. 2000-2002 CBR600 (or something around there)

This is nice: http://adcache.cycletrader.com/5/2/4/81760324.htm

RE: Student Loan?
 

I'm not a big fan of red, but it is nice. Good Luck...:D

RE: Student Loan?
 

looks good!

RE: Student Loan?
 

The 11.9% is good if you truly have NO or poor credit.....the 7 points!!!! wow that is high. once you get your credit we'll know better...I haven't charged someone 7 points since I managed a finance company.

RE: Student Loan?
 

must be nice to be a finance wiz... what are you talking about 7 points?

RE: Student Loan?
 

Yea, how does the 7 points work? It is applied to the total loan amount right at the beginning? Then in addition to that its 11.90% interest?
So how much would the total come out to? It would be higher then $6000 right?

RE: Student Loan?
 

go to school, buy a bike! if this doesnt keep kids in school, i dont know what will! :D

RE: Student Loan?
 

"• Origination Fee: 7.00%"

(ie on 5000 = 7% fee x 5000 = $350)

So loan would be $53500 @ 11.99% if you want to pay it off in 3 years = $177.67/mo (just so you know, truly =s 16.76% then becasue of origination fee--points if 3 year term)

Not horrible if you truly have no credit/bad credit.

Did you ever find out your credit score???