Should I qualify? - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

some_guy · #1 (**permalink**) 02-12-2008, 07:48 PM

Yesterday I was denied a personal line of credit with a $10,000.00 limit. I was hoping to use this to buy a motorcycle this summer. I was kind of surprised that I was denied, as I have a good credit rating (785) and have never missed a payment for anything in my life. I do have one other loan, for my car. The outstanding balance is about $21,000 and the car is worth about $19,000. Monthly payments are about $300. My other main monthly liability is rent, which I pay half of $1170. My monthly gross income is about $3800.

In your opinion, do you think I should have been rejected?

Also, would it be easier to get an installment loan for the motorcycle rather than a line of credit? I would prefer it to be unsecured, as I don't want a lien on the bike.

Robert · #2 (**permalink**) 02-12-2008, 11:56 PM

Unsecured is the most likely reason. Credit is getting tight. Robert

cabbage753 · #3 (**permalink**) 02-14-2008, 05:51 AM

credit is geting alot tougher and look at the trouble the sub prime has started

cabbage753 · #4 (**permalink**) 02-14-2008, 05:52 AM

i think you should get your own home, not rent befor looking to buy a bike.

some_guy · #5 (**permalink**) 02-14-2008, 11:23 PM

I think I've decided I'll just pay cash. Thanks for your help.

Also, I'm only 23. A house is a looooong ways away for me still, especially living in Vancouver. Have you seen housing prices here lately??

ericajones80 · #6 (**permalink**) 02-15-2008, 08:36 PM

Credit is definitely tightening up, you would have definitely been approved in the past.

realworldknowledge · #7 (**permalink**) 03-14-2008, 05:04 PM

Why dont you take the cash and pay off the car? You'll save $$ in interest.

realworldknowledge · #8 (**permalink**) 03-14-2008, 05:05 PM

I love this quote (and this is by no means intended to insult or is in any referance to any poster here)

how are you going to have a Landrover and a Landlord at the same time?... hahahahaha

sahilmiddha · #9 (**permalink**) 05-23-2008, 10:48 AM

i think you should get your own home , not rent before looking to buy a bike.

spencer24 · #10 (**permalink**) 05-23-2008, 03:24 PM

Quote:

Originally Posted by cabbage753

i think you should get your own home, not rent befor looking to buy a bike.

Buying house in Canada or US at these price levels will be nothing short of foolish.

As for the original question, yes credit is getting harder to get, and that's a good thing - the economy should first digest the already high levels of accumulated debt.