Does anyone have any links to any resources that would explain the criterion that banks use to choose whether or not to accept or decline younger people wanting to borrow?
(Assuming that the borrower is 18..)
How much of a part does age itself play?
If a borrower who is 18 wanted a $50,000 loan and was more than capable of handling the monthly payment and a 10 - 15% downpayment, what are the chances that they would be declined OR asked for a parent co-sign automatically, for the simple fact that they were 18 and lacked a credit rating of any sort?
Does the 18 yr old have a solid job?
How long have they been at that job?
Does the 18 yr old still live at home or have their own address? (may show independance)
A co-owner would probably be required seeing as the 18 yr old wouldnt' have much, if any credit rating.
Yes being young hurts on a loan a lot, especially at 50k I'd assume the chances are pretty thin. That's a hefty loan for a first one.
Its usually a good idea to get a SMALL credit card charge a little bit and make the minimum monthly payments. CReditors like that. (paying it all off doesn't really do all that much seeing as they won't make any money off of it)
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Yep, Vass is correct. The "loan-ers" need to cover their bases.
If you are contmplating a major purchase, X2, you'll likely need a co-signer with solid credit.
But if you are simply looking to establish a credit record (smart lad! ) the way most people do it, believe it or not, is Oil company credit cards... they are a very good start, and they can be acquired by folks with no previous credit history.
It's actually a sample project (of my choice) for an economics class.
It's something that has always interested me - but don't know much about. Especially when I hear about the rough time that some younger guys have with their banks and such.
Quote:
Its usually a good idea to get a SMALL credit card charge a little bit and make the minimum monthly payments.
So you're saying that it's a better idea NOT to pay off your entire debt when you do your monthly payment?
I've heard this is a good way to establish a nice credit rating when you're young. I take it Oil Company Credit Cards are typically easy to acquire, compared to something like a basic VISA or MC?
Start credit with a local business
Apply for department store and oil company credit cards. Don't get a new store credit card every time you get a discount offer, but it's good to have one or two cards to start your credit history.
On top of that - how long does it take to establish a "solid" credit rating? I take it that using your oil company credit card for a few months won't exactly do the trick.
) the way most people do it, believe it or not, is Oil company credit cards... they are a very good start, and they can be acquired by folks with no previous credit history.
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