In the next month I need to get a personal loan for about $8,000-$10,000. I am 19 years old, and have had credit for a bout 16 or 17 months. My credit was maxed for about year then paid it all off, then I had to max it again for bills(had problem at work). But now I have knocked it down to only $100 on the card and I have $300 limit. At the end of the month I am going to get it down a little more. My main question is: is it possible for me to get a personal loan of this size? I am going to put my car up for collateral. The tax value of it is around $1,300-$1,500 I do believe. (not sure if that is important or not, but I am guessing they need a value to go by).
It will probably be tough. What's your credit score, documentable income, and what do you plan to use the loan for? Your lender will look very closely at these three things before lending any money to someone who has only had credit for a little over a year.
My credit score is 600 something I think. I wanna say somewhere in 630 or 640 area, that was about 3 - 4 months ago, so I am not for sure now. My pay varies, its not much, its only about 700-900$ a month. But I don't have any bills to pay really. Would I have any chance at getting a smaller loan if that didnt work?
Well value of the car is somewhere inbetween 1500-2000$. What if I was to try and use it as collateral for a loan about $2,500 - $4,000? Is that a lot more reasonable?
You may be able to find a non-traditional lender that will give you a personal loan using your car as collateral, but I doubt they will provide you with much more than what they consider your car worth. Interest rates for this type of personal loan will be sky high, so be careful and make sure you know exactly what you're signing.
If you belong to (or are eligible to join) a credit union, that's often a good place to start. They may be more willing to work with you.
