18 and need a loan

GregW1990

Hi!

I'm 18 and have recently started work, and spending up to £100 a month on travel. I can afford this amount, but if i'm paying that much anyway, i feel I'd be better off getting a loan to buy a second hand motorbike or similar - i'd rather have my own transport than rely on buses, they're rather useless.
I've never had any credit cards/loans or anything in the past, so I think my credit rating is non-existent at the minute.
Any idea who would be able to offer me a loan like it?

I also don't have anyone who would be able to sign as a guarantor for me.

Cheers.

Greg

StuTheDon

GregW1990 wrote: »

Hi!

I'm 18 and have recently started work, and spending up to £100 a month on travel. I can afford this amount, but if i'm paying that much anyway, i feel I'd be better off getting a loan to buy a second hand motorbike or similar - i'd rather have my own transport than rely on buses, they're rather useless.
I've never had any credit cards/loans or anything in the past, so I think my credit rating is non-existent at the minute.
Any idea who would be able to offer me a loan like it?

I also don't have anyone who would be able to sign as a guarantor for me.

Cheers.

Greg

Greg,

It depends on a few things. Do you have a job and what is your salary like? How long have you been in that job?

I think it is unlikely you will get loan straight away - you may need to apply for a credit card and build some history that way. But if you do this, please clear your balance every month or you could get trapped with debt.

I remember at 18 I didnt care about money, but you dont want to be spending your 20s paying off debt!

Cheers.

rjayne

I'm sure you have thought long and hard about getting a loan and I'm sure you will be far more restrained and sensible than I was but please do take chance to think again.

I took out a loan at 19 in order to pay for driving lessons, I then extended the loan to pay for something else, then did it again and perhaps even again to pay for something else that had come up........

that was 10 years ago and on Friday I will receive my first pay packet since I was 19 that is all mine and has no loan deduction!!

I'm sure it was far easier back then to get loans extended and banks will be more cautious now (all it took then was a "i want to restructure my loan, can I have another £1k please") but mine started at £500 and in the end after extending to consolidate a few credit cards etc I've paid back over £10k!

Like I said, I'm sure you will be more sensible than me but it is a very slippery slope. I've learnt my lesson and won't have another loan again.

I know there are companies that do HP/monthly rentals on peds/bikes - that might be a better way to do it.

Hope it all goes ok anyway.

Becs

Kazipoo

GregW1990 wrote: »

Hi!

I'm 18 and have recently started work, and spending up to £100 a month on travel. I can afford this amount, but if i'm paying that much anyway, i feel I'd be better off getting a loan to buy a second hand motorbike or similar - i'd rather have my own transport than rely on buses, they're rather useless.
I've never had any credit cards/loans or anything in the past, so I think my credit rating is non-existent at the minute.
Any idea who would be able to offer me a loan like it?

I also don't have anyone who would be able to sign as a guarantor for me.

Cheers.

Greg

Thing is, if you take out a loan to buy a motorbike, not only will you have the loan payment to think about, but you will also find that your travel costs increase dramatically too.... as well as petrol you will have insurance, which is likely to be quite high since you are young and have little if any no claims bonus, road tax, MOT, breakdown cover and wear and tear costs to think about... I think your original £100 could easily double and more, so I would work it all out very carefully and think long and hard before making this decision.