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Is borrowing money from bank a good idea??

T

thoro86

Banned
Let's say i wanna borrow $10,000 to buy a car...
I would surely have that amount of money for the car in 1-1.5 years (work+financial aid+ scholarship), but I've been waiting for it for 2 years now. My work location is very limited w/o a car.

If I borrow the money from the bank, is it a good idea? How does it work? Will I end up paying MUCH more than 10,000 to the bank ??

Clueless...

 
It's a better idea than borrowing it from a loan shark.

How MUCH more than $10k you pay back depends on the interest rate. WHich is.... ______?
 
We have lending systems developed just for this reason.

If you need the car now, then by all means borrow the money. If it's just a luxury then wait another 2 years.

The interest will vary depending on the bank you contact - call them to ask.
 
Originally posted by: mugs
It's a better idea than borrowing it from a loan shark.

How MUCH more than $10k you pay back depends on the interest rate. WHich is.... ______?
Click to expand...

I think it's 14% from wells fargo, but I don't really understand how it works...


Is it: The money I would've spend: 10,000 x 114%
or every month: minimum paymentx 114%

Maybe I'll go ask them, but I'm afraid they're gonna "lie" to me/ won't let me see the hidden truth... That's why I need some second opinions 😛

thanks
 
Originally posted by: aswedc
Originally posted by: axelfox
Where else would you borrow from?
Click to expand...
The financing company run by the car brand?
Click to expand...

Don't banks usually give you a better rate than than getting your loan at the same place as the car? (unless they're running some sort of promotional offer, of course, but a lot of people "don't qualify" for those)

Originally posted by: thoro86
I think it's 14% from wells fargo, but I don't really understand how it works...
Click to expand...

Is that for a CAR LOAN, or a general loan? Because that's way high.
 
Originally posted by: UNESC0
We have lending systems developed just for this reason.

If you need the car now, then by all means borrow the money. If it's just a luxury then wait another 2 years.

The interest will vary depending on the bank you contact - call them to ask.
Click to expand...

I need the car to get a better job opportunity... also thinking about running a small business like door to door service... that's why I think that car is a must...after being "carless" for 2 years.

 
Originally posted by: thoro86
Originally posted by: mugs
It's a better idea than borrowing it from a loan shark.

How MUCH more than $10k you pay back depends on the interest rate. WHich is.... ______?
Click to expand...

I think it's 14% from wells fargo, but I don't really understand how it works...


Is it: The money I would've spend: 10,000 x 114%
or every month: minimum paymentx 114%

Maybe I'll go ask them, but I'm afraid they're gonna "lie" to me/ won't let me see the hidden truth... That's why I need some second opinions 😛

thanks
Click to expand...

Neither.

14% interest SUCKS. What's your credit score? Look into other financing companies.
 
Originally posted by: mugs
Originally posted by: thoro86
Originally posted by: mugs
It's a better idea than borrowing it from a loan shark.

How MUCH more than $10k you pay back depends on the interest rate. WHich is.... ______?
Click to expand...

I think it's 14% from wells fargo, but I don't really understand how it works...


Is it: The money I would've spend: 10,000 x 114%
or every month: minimum paymentx 114%

Maybe I'll go ask them, but I'm afraid they're gonna "lie" to me/ won't let me see the hidden truth... That's why I need some second opinions 😛

thanks
Click to expand...

Neither.

14% interest SUCKS. What's your credit score? Look into other financing companies.
Click to expand...


They haven't chacked my credit score yet. But the staff showed me that it will vary between 11-15 (if i'm not mistaken, but it's for sure above 10 %)

Yeah I'm not in a rush, so I'll do some research before I make the wrong choice..

 
Originally posted by: thoro86
Let's say i wanna borrow $10,000 to buy a car...
I would surely have that amount of money for the car in 1-1.5 years (work+financial aid+ scholarship), but I've been waiting for it for 2 years now. My work location is very limited w/o a car.

If I borrow the money from the bank, is it a good idea? How does it work? Will I end up paying MUCH more than 10,000 to the bank ??

Clueless...
Click to expand...

jeez, not to be a hard butt.....

You need transportation. You're still in school? And you want to but a 10K+ car?

WTF is wrong with you??????

Of COURSE you will pay more than 10k. What the blazing hell is wrong with you????

Good god, what the hell is going on with our youth that they don't even understand they pay more for a loan over the life of the loan.

These kinds of posts make spidey very sad. "how does it work"? WTF!!!!!!!!!!!!!!!! You commit to 10K and you don't know how it works????????????

spidey sad for future dumb ass generation.
 
If you have the option, always get the loan from a Credit Union... either through your job or your parents.
 
just go to the bank and ask to talk to someone about an auto loan.. they'll explain the details and work with you on it... think about it.. if they give you an auto loan, they basically own your car until you pay it off.. if you can't pay, they can take the car.... if you can pay, they make interest anyway.. win win for them.. they'll almost definately give you the loan, and if you can make the payments, then do it if you need the car
 
Originally posted by: thoro86
Originally posted by: mugs
Originally posted by: thoro86
Originally posted by: mugs
It's a better idea than borrowing it from a loan shark.

How MUCH more than $10k you pay back depends on the interest rate. WHich is.... ______?
Click to expand...

I think it's 14% from wells fargo, but I don't really understand how it works...


Is it: The money I would've spend: 10,000 x 114%
or every month: minimum paymentx 114%

Maybe I'll go ask them, but I'm afraid they're gonna "lie" to me/ won't let me see the hidden truth... That's why I need some second opinions 😛

thanks
Click to expand...

Neither.

14% interest SUCKS. What's your credit score? Look into other financing companies.
Click to expand...


They haven't chacked my credit score yet. But the staff showed me that it will vary between 11-15 (if i'm not mistaken, but it's for sure above 10 %)

Yeah I'm not in a rush, so I'll do some research before I make the wrong choice..
Click to expand...

What were they basing their estimate on? 😕
 
I think I learned equations for this in Algebra 2. For Monthly compounding loans- total_payed=loan_amount*(1+(interest_rate_decimal/12))^(12*years).

So, assuming a $10,000 loan at 6% for 3 years compounding monthly, you'll be paying a total of $119666.80. It will depend greatly on the type of loan and interest rate too.

I have a VB program I wrote that figures payments and and total owed. Once you get some information about the loans available to you, check out one of those loan calculator websites.
 
please spend some time on the internet researching lending / banks / interest rates / car loans. It may seem complicated (and it can be), but the basics are pretty simple. Make sure you know what you are doing before you go into significant debt.
 
I am a mtg loan officer so i know a lot on the lending of money.
14% percent interest blows chunks! I am paying for my car at like 6%, and i bought it brand new 2 years ago! My loan is through wells fargo, then again my credit is near perfect. When you get any loan the first two or 3 years payments are just pretty much interest. Never finance a car through the car dealers, they are just outragous. You will find better financing elsewhere.

Check out this website.
www.bankrate.com

 
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