$129.68 monthly payment for a $5000 loan, is this good?

[StageLeft]

Why would you take out this loan? It's a bad rate and shoulid only be used if you need the money. That doesn't mean new car: it means rent if you're otherwise about to be kicked on the street.

 

[waggy]

man i can't beleive some of the loans you guys have.

I just have my car and house loan. I even try to keep my CC debt to Zero.

 

[StageLeft]

Originally posted by: waggy
man i can't beleive some of the loans you guys have.

I just have my car and house loan. I even try to keep my CC debt to Zero.

It's the American way! And, if you're young, you're nothing without a car loan worth what you gross each year. That's how it's done, baby!

 

[waggy]

Originally posted by: Skoorb

Originally posted by: waggy
man i can't beleive some of the loans you guys have.

I just have my car and house loan. I even try to keep my CC debt to Zero.

It's the American way! And, if you're young, you're nothing without a car loan worth what you gross each year. That's how it's done, baby!

heh even when i was younger i didnt take out loans. just car loans etc.

 

[Anubis]

Originally posted by: Anubis

Originally posted by: Evadman

Originally posted by: Anubis
i have 17000$ in loans @ 2.7% intrest and i pay 45$ a month

Thats awesome! You are paying less than $100 a year towards prinicpal (assuming simple 2.7%. But no company uses simple, they all use monthy or daily, so you are actualy paying about $60)

You will be paying off this loan for 170 years. better let your kids know.

it changes, its like 45$ month for the first year and like 75$ a month for teh next 2 years, intrest rate will drop a whole nother point if im on time with payments for 30 in a row or something like that and another 0.5% for something else

thats just the minum required payment and its not gonna last 170 years

O and about 6000$ of that 17K is intrest free

i just checked and to clairify its a 10 year loan, first 3 years i pay 45$ a month and then it goes to 130$ a month till its paied off
2.7% intrest, if i use automatic duduction from a bank account it goes to 2.2% intrest, and if i make 30 payments on time in a row it drops to 1.2%

 

[Vic]

Originally posted by: Skoorb

Originally posted by: waggy
man i can't beleive some of the loans you guys have.

I just have my car and house loan. I even try to keep my CC debt to Zero.

It's the American way! And, if you're young, you're nothing without a car loan worth what you gross each year. That's how it's done, baby!

You know what's funny? If you don't take out a car loan for that amount, or also a mortgage for 5-6x times your gross annual income, then people assume you make less than you do. It's stupid.

 

[Anubis]

Originally posted by: Skoorb

Originally posted by: waggy
man i can't beleive some of the loans you guys have.

I just have my car and house loan. I even try to keep my CC debt to Zero.

It's the American way! And, if you're young, you're nothing without a car loan worth what you gross each year. That's how it's done, baby!

im young and teh only loan i have is the one from paying for college and 0 CC debt

 

[waggy]

Originally posted by: Vic

Originally posted by: Skoorb

Originally posted by: waggy
man i can't beleive some of the loans you guys have.

I just have my car and house loan. I even try to keep my CC debt to Zero.

It's the American way! And, if you're young, you're nothing without a car loan worth what you gross each year. That's how it's done, baby!

You know what's funny? If you don't take out a car loan for that amount, or also a mortgage for 5-6x times your gross annual income, then people assume you make less than you do. It's stupid.

heh yeap.

even when i was working and making a bunch of money (close to $100k ayear). I would buy used cars (of course i got them cheap from my father). I think the highest amount of car loan i have ever taken is $17k.

I have watched family (2 sisters) get in trouble with credit and credit cards. both have filled for bankruptcy.

 

[RiDE]

Originally posted by: Vic

Originally posted by: RiDE

Originally posted by: Vic

Originally posted by: RiDE
So all those banks are bad lenders?

I'm not saying that the banks are bad, just to avoid these sub-prime lending divisions.

Ok sorry, that's what I meant. 😱

What exactly makes a lender sub-par, other than catering to people with questionable credit history?

Not sub-par, sub-prime, meaning lenders that cater to people with bad credit. There's nothing wrong with them per se, just that you should avoid them if you have good credit as they don't have the best deal for you.

And Ross, I did include Beneficial and American General 😕
It is legal because there are no usury laws in Oregon.

Ahhh ok I see. Thanks.

So basically they approve loans for people with so-so credit in hopes of digging a deeper hole for themselves. 🙁

 

[Ameesh]

Originally posted by: luvya
Well, just got this letter from Citifinancial, the term is based on a $5000 loan payable over 60 months at an 18.99% annual percentage rate. However, I did my calculation, and I am not sure where that 18.99% rate comes from......But anyway, is it a good deal for loan of this size?

19% is a terrible rate.

 

[FrustratedUser]

Originally posted by: RossMAN

Originally posted by: Vic
Citifinancial is the old Associates Financial. Citibank bought em up after the Associates got hammered in the late 90s mobile home loan collapse, but otherwise changed nothing about their business model or practices.
In other words, they are a strip mall bad credit lender, just like Household/Beneficial (owned by HSBC), American General (owned by AIG), and Wells Fargo Finance (the old Norwest Finance, owned duh by Wells Fargo Bank).

Unless you enjoy dry anal rapage, avoid these lenders at all costs, no matter how badly you need the money. If the cost of the lawsuit and fines is less than the profit from ripping you off and from screwing your credit so you're stuck with them for life, they will rip you off and screw you over.

you can add Beneficial and American General Finance to that list of "strip mall bad credit lenders" 🙂

When I had zero credit, these lenders were more than happy to offer me credit BUT at the cost of $100 loan fee and 23 - 35% APR. I can't believe that's even legal. They serve a niche market and although there is considerable risk, I'm sure that they are doing well.

I remember routinely receiving $2,000 - $5,000 checks from these lenders. Once I stopped cashing them and building credit, ALL of the sudden the checks stopped coming.

Hmmn, imagine that 😛

I had the same problem. When I came here I HAD to take a 29% car loan to get in the system. I stayed with it for 6 or 9 months, don't remember exactly, and then refinanced at 5.2%. Now, the CC companies are dumping shitloads of offers my way.