Should I qualify?

some_guy · #1 (**permalink**) 02-12-2008, 02:48 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, 06:56 PM

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

cabbage753 · #3 (**permalink**) 02-14-2008, 12:51 AM

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

cabbage753 · #4 (**permalink**) 02-14-2008, 12:52 AM

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

some_guy · #5 (**permalink**) 02-14-2008, 06:23 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, 03:36 PM

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

realworldknowledge · #7 (**permalink**) 03-14-2008, 01:04 PM

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

realworldknowledge · #8 (**permalink**) 03-14-2008, 01:05 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, 06:48 AM

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

spencer24 · #10 (**permalink**) 05-23-2008, 11:24 AM

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.

maat55 · #11 (**permalink**) 05-25-2008, 11:07 AM

Quote:

Originally Posted by some_guy

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??

I think you just made the right decission, don't think that debt is your best option when buying consumer items. Also, be careful that you don't spend too much, of your money, on things that go down in value.

A good book for you to read is The Millionaire Next Door and The Wealthy Barber.

tomhank17 · #12 (**permalink**) 06-05-2008, 05:49 AM

May be if you are not aware there are lots of bad debts prevailing in the market\, so as a precaution lenders want to become more safer on their side. That is why secured loan are preferred, but in case if u want to have unsecured loan than you might have to pay higher interest rates. And another point but a home rather than the bike, also you can pay off your debs on the car and save money.........................

Jerrydill · #13 (**permalink**) 06-05-2008, 01:28 PM

Credit is always a problem right now. Wit so many problems with the credit crunch right now, lenders are very weary about who and what they loan out to. I know you must be discouraged, but you have to understand the condition of the market first.

rachael24 · #14 (**permalink**) 07-11-2008, 11:59 AM

I agree with Jerry here...the market right now is not in your favor. Its tough to take in, but thats how the financial world works.

rogerthert · #15 (**permalink**) 10-30-2008, 12:08 AM

...sorry read my post below

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