Question about how to do adult stuff?

[Anonymous]

i recently turned 18 and am curious mainly about the stuff like taking a loan i am 18 and come from a not so wealthy family and don’t have a drivers license yet but want a job i was thinking a motorcycle but i don’t have the money for one and my family doesn’t either i have saved $700 but realize it isn’t gonna be enough for a car in good condition but i am curious my brother has good credit and so does his wife i was wondering what would be the chances of me being able to take let’s say a $2,000 loan for a decent motorcycle or a small car i don’t have any credit but do have income but more of just freelance stuff like working with my father doing plumbing, gutting houses, landscaping, etc but i have no credit history i do have my brother who has decent credit who said he could cosign for me but what is the likely hood they would allow me to take a $2,000 loan and is that a small or large loan i am not sure cause of course yo me that seems like a lot of money but to a bank or loan company would that be a big risk or a large sum just curious so thought i would ask people who have already been around and done this before or have knowledge on loans and such

[Oliverlogan263]

Here's my advice dude:

Getting a $2k loan as your first loan with no credit history is gonna be tough. Banks like to see you can make payments responsibly before lending you that much cash. A few things to consider:

- Your bro co-signing helps, but they'll still look mostly at your ability to repay it yourself.

- Your freelance income might work if you can document it well with pay stubs or invoices. Showing steady money coming in is key.

- Start small - see if you can get a "secured" card first where you deposit money up front. Use it responsibly for 6 months to build credit.

- Look into cheaper transport options first while saving more. Maybe a used bike for under $1k, or see if family will help with a beater car for your first set of wheels.

- Explain your goals - having a vehicle to get to a steady job helps your case. But you still need time proving yourself.

My advice would be apply, but have realistic expectations. Building credit takes time. See if you can save a bit more too for a down payment to lower your monthly payments. Start small and work your way up - playing the long game will serve you better than going too big too soon. Hope this gives you some insight!

[exitseven]

Start out by applying for a credit card. Do some research and find one that has a low interest rate. Make sure you make payments on time. When I was starting out I opened my savings account with a credit union. Then if I needed a loan I could more easily qualify for it there. The rates are usually competitive as well.

[rosemilk]

you don't have credit history (or a job for that matter) so you cannot get a loan of 2k. that's a lot. MAYBE $800 maximum. you are a risk for banks because of the no credit history and no consistent job. so the most you can do right now is get a job (gonna have to find another form of transportation) and get consistent paychecks, then sign up for a credit card so you can build your credit score, and then the banks will more likely help you.

welcome to being 18!

[Asker]

so basically welcome to sink or swim 😂

[rosemilk]

yes lol that is how being an adult is these days, unfortunately

[Sparkie460]

You need to establish credit before a bank will loan you money. You can do that by opening a credit card account. Charge just enough that you know you can pay off when the bill comes each month. The card company will see that you pay the bill in full every month and increase your credit limit. You are now establishing good credit

[slatyb]

A loan? For what? Bank loans generally require collateral. For auto loans, it's the car. For home mortgages, it's the property.