Ok so how bout this, there are some things I want to buy for my jeep, a lift is one of them, with the 500 doller limite on the credit card, that would be enought to get my lift, Question is do u pay monthly on it or do u pay strait up when a bill comes? I figured since im working ill buy a few things i have been wanting for my jeep, while at the same time establishing credit...is this a reasonable idea??

 

Yes and no. As has already been talked about, getting a credit card is one of the first steps to establishing credit. The thing is, to do it right, you have to go slow. IF you get a credit card and IF you choose to use it ONLY USE IT IF YOU HAVE THE CASH TO PAY FOR THAT ITEM IN FULL.. There are many reasons for doing it this way: 1. No interest - most credit cards have a 30 day grace period so if you buy a $100 item and make a $100 payment as soon as you get your bill you just got free use of that money for 30 days. 2. Training yourself - Credit is new to you, if you get into the habit of paying in full that may continue throughout your life. 3. Establishing credit history - This is an important one. If you consistantly charge on your credit card and pay it off each month the credit card company will respond by raising your limit.

After you have had a credit card for a while you can expand into carrying a balance for a month or two if you really need to, but in the long run it will be much, much better to go slow with this. Whatever you do, don't missuse your credit or your new job. I know it's tempting - you've finally got some money coming in and you want to buy stuff but don't rush it - you will regret it for the rest of your life. So don't go out and buy everything you ever wanted for your jeep - Instead go out and buy one thing at a time and pay it off. This will be the quickest way to establishing a good credit history. Also remember, any money you spend on your jeep will be that much less to go towards a quad.

I have a suggestion: You mentioned that your dad is a businessman. Why not ask him how this all works? If not, feel free to get advice here. It sounds like there are several of us here who really want to see you do this right.

Jaybee

 

Hooooooooooooray...it is nice to see sound financial advice being given to someone that is younger and just starting out on establishing credit. I am 33 years old and have never missed a payment on anything...hell I have never even bounced a check but I made this a priority way back 15 years ago. I am also a financial counselor now so I guess it is fitting that I am good at managing my own finances.

Establishing credit is one of the most important things you can at an early age but <u>you must exercise control and discipline when you do this.</u> I started off with a $200 limit on a card and used it but paid it off early and within 6-8 months I had other creditors soliciting me for other credit card offers. I have only on Visa now with a larger limit than I ever expect to use and that is it for me.

You may want to see if your parents will co-sign for you and by going this route you can go more on financing now since they will mainly use your parents credentials but you will still have established credit for you on your credit bureau....just never miss a payment and learn to save for those months that you might have missed due to being short........my grandparents taught me to save and I have to say it is the most valuable lesson they ever taught me. I could go on forever on this subject so I better end it....good luck on your purchase [img]i/expressions/face-icon-small-smile.gif[/img][img]i/expressions/face-icon-small-smile.gif[/img]

 

TreadHeavily,
Judging by the way you are talking you are going to get into credit card trouble if you aren't careful. I had a friend in high school that was in your same situation, he wanted to finance a wheeler but didn't have any credit to buy one. He went out and applied for credit cards. He applied for a Sears cards a discover card, and a bunch of others.
Well needless to say, sears and discover are the easiest cards to get with very high interest. He got three credit cards and within the years he maxed them all out. He was in debt like $20,000.00 before he graduated high school. needless to say he filed bankruptcy at 20. He is now pretty much screwed for life and now the only way he will be able to get a new car or wheeler is to pay cash. It's a long time to rebuild or credit but only little while to ruin it!
Becareful, someday you will want a house and new car. Don't ruin it now.

-Northern

 

TreadHeavily,

If you did ever have to file bankruptcy...it stays on your credit bureau for 10 years after the debts are discharged.....so you will want to pay careful attention to your finances especially when you are young. I don't know about you all but I dont know where I will be in 10 years but I do know that my credit history will top notch by the way I conduct them today !! [img]i/expressions/face-icon-small-smile.gif[/img][img]i/expressions/face-icon-small-smile.gif[/img]

 

If you never take any advice in your life, take just this one. Protect your credit as if your life depends on it, because if you don't you are looking forward to a life of hardache.

 

Thanks to all who commented on my advise. I learned the hard way, and I feel lucky to have gotten through it.

I wish my brother-in-law would listen to me, but he doesn't. [img]i/expressions/face-icon-small-smile.gif[/img] I see him going down the same road that I did, but he just doesn't see it. I'm going to show him some of my bills from 4 years ago to see if that helps.

Anyway, TreadLightly, if you absolutely have to buy a quad now, that 2 or 3 grand is better than spending 5 or 6, but I don't think you're going to get a credit card with that kind of limit. As I stated, I think the only way this is going to work out for you with financing is to get a cosigner.

Also, if you do finance a new quad, you'll most likely have to insure it, so count that into your $110 monthly limit.

A couple questions for you so that we can help you with this advise:

1. Is there a reason that your parents won't cosign?
2. With your new job, how much can you save each month?
3. How much have you already saved?
4. Can you approach a relative about a low-interest loan from them? Grandmother, etc.? Maybe make a deal that if you can save X amount of dollars by X time, they front you the rest of the money? My Grandpa used to do stuff like that to show us the value of saving.
5. Do you own anything that you can sell off to get cash?
6. Maybe try to get a job at a cycle shop - you'll learn, get discounts maybe, maybe even find a connection that will enable you to get a great deal on a used bike... Just a thought.

Just FYI, I started building credit with a cosigned loan on a truck when I was 17. I also had a secured $500 credit card which I would use for gas every month, and pay off each month. I did, however, carry a $50 balance on it because my grandpa (a real estate investor) told me that it would build credit faster if I left a little bit on it. The credit card was also nice to have to buy things mail-order.

Hope this helps, if you can answer (or think about) those questions, maybe it'll help.

Thanks,
Marc

 

Tread,

Oh yeah, I forgot. About your Jeep - I'm not sure what type or year it is, but I have a '94 YJ with a 4 inch Rubicon Express lift, 1 inch MORE body lift, SYE kit, BFG Muds, blah blah blah. Problem is, if you spend $500 on a lift, you would also need a bunch of other stuff to go with it. After the lift, tires, SYE kit (not required but nice for over 4 inches), wheels, etc., you're in for about $2000, and that's installing it yourself. Of course, that's better than my '98 Dakota, which ended up costing over $3000 to lift, and that was with me installing.

By the way, never NEVER NEVER attempt to install a lift on a Dakota. What a pain in the butt. Toyota IFS, ok. Toyota Solid axle, easy. Jeep YJ, easy. Chevy IFS, not too bad. Dakota, terrible.

Anyway, I digress...

So, from my experience with Jeeps, I would say that this is not really reasonable, at least not if you expect to spend only $500.

I would have to say that I agree with jaybee - SAVE SAVE SAVE. It will suck, but look at it this way - if you can save that $110 a month for year, then $140 a month for another year, you will have $3000 after two years. You can buy a nice used 400ex which you will OWE NOTHING on, and have that $140 a month to spend on goodies for it. I know, two years is a long time, and when I was 18, I would have done (and probably did do) exactly what you are trying to do, so I certainly can't blame you or look down on you for doing it, and I never would.

Thanks,
Marc

 

After all said and done its the anticipation of getting something that is half the fun. I love the looking and the kicking of the tires, looking at the brochures and dreaming. Instant gratification with a credit card is to easy.

Chet

 

Lots of good advice here especially from Mjollnir. I have done almost exactly the same as he did but I am a few years behind. I am 24 and hope to own a home in about 2 years, but still need to pay off another 10k.

The best way to get cars and atvs is to start real cheap and trade up. I rode a Suzuki lt230 for 2 years because it was 500$ and that was all I had cash. My friends smoked me on thier Blasters, but that is the price I pay for spending every $ I could get from 18-22 years old. I learned the hard way but I am glad for it now. I just bought an lt250r cash and in a year or so I will get a Banshee or Quadzilla and will pay for it cash also. They however still are and most likely still will be riding thier Blasters.