I have a question about financing?

Question

im 16 years old, I'm buying either a sport motorcycle or an ATV, I plan on getting a financing plan, in which ill be spending at least $7000. But my job that i have now will help me make all the payments i need in the future. i dont have all that money now, but how do i know if i am elegiable to follow through with the finance payment plan and have one of the these vehicles with no problem?

Answer 1

No bank in their right mind will loan $7000 or even 7 dollars to anyone without a history of good credit.  The only way to help your chances is to have a parent take out the loan (co-sign) for you and that will only work if they have good credit.

IMHO: you are too young to have the responsibility of payments for anything and spending money you don't have is too risky.  Work hard, save your money, and pay for it in cash.  You'll never be able to afford to move out of your parents house making payments on anything.

Answer 2

If you're 16, you are probably not eligible for any credit or financing.  Save up and buy it when you can afford it, i.e. pay in cash.  16 is way too young to dig yourself in a hole and bury yourself in debt.

People who splurge on credit or financing are basically looking for troubles.  If you have no money right now to spend, what makes you think you will have money tomorrow?  It's like gambling in Vegas without money hoping that you will win some to pay back your debt, all the while the debt keeps on accumulating interest and put you in further.

Answer 3

You are not old enough to sign a contract on your own, so you are  not eligible for a loan.  You will need to get a co-signer to take on the loan with you if you really want to go that route.

My advice is to avoid taking out a loan for a "toy" like an ATV.  Save up your money and only buy one when you can pay cash for it.  Taking a loan for something critical like a car (if you need it to get to work) might be considered, but a loan for a toy is a really bad idea.