Question : How can you go about getting a personal loan from a bank? What collateral do you usually need?
I will probably need to replace my car soon, but I don't know that I want a traditional car loan because it would require having more insurance, and thus be rather expensive for me. (It'd be about double for me, as I don't have a spotless driving record). I was wondering if instead I could get a personal loan from the bank, say in the neighborhood of $3-5K and use that for a car thus saving me a bunch of money by not needing collision coverage if I could pay for the car in cash.Now the questions ... is this possible, or is there usually some stipulation that you can't use a personal loan for a car? What sort of collateral do you usually need for a personal loan? If you have good credit, can you get one w/out collateral? Any info would be greatly appreciated! Thanks!
- asked by Mike D!
All Answers:
Answer #1
I don't know what state you live in, but inFlorida you are required to have collisioninsurance for at least $10,000, even if you ownyour car. As to personal loans, yes, if you havegood credit, you can usually get one with nocollateral. Just explain to the bank that you wantthe money to purchase a new car, and arrange arepayment schedule based on your current income.Most banks will do that.
- answered by WhiteWolf359
Answer #2
Apply for a personal loan at your bank. For theamount you are considering, you could get the loanwith no collateral, as long as you have theability to pay the loan payments.I have a $20,000line of credit at my bank. All I had to do wasask for it.
- answered by regerugged
Answer #3
Some banks do give small loans of about$2000-$3000 and it helps if you have an account(s) with the bank.If your credit is good, the bankwill consider giving you more money and for sureif you own your home and don't owe major amountsof money to others, you'll probably get the money.
- answered by Yellow Tail
Answer #4
A personal loan is anun-secured/non-collateralized loan. Your approvalis based soley on your credit history and abiltyto repay, i.e. steady source of income (which theywill want to verify).In my state, with the Bank Iwork for, you apply, get approved and, as soon asthe docs are generated (usually only a day or so),you sign and receive a check same day. As far asyour stipulation question, this is a personal loanand, as long as you're approved, the Bankgenerally does not want or need to know thepurpose.
- answered by jrzeegrl71
Answer #5
I would stay away from any kind of vehicle andpersonal loans. Auto loans are usually for 5-7years and personal loans are shorter. But withpersonal loans you will pay a higher interestrate. Start saving what you think would be a carpayment now, collect interest on your savings andthen buy a car with straight cash. A 20, 000 loanfor auto should cost about 24, 000 after intesrtat 6%. So you really paid 24, 000 for your car. Try selling things you don't use to get your carfund going, add what your blue book value for yourcurrent car and see how much more you need tosave. Put aside a $1000 for a deductable and saveeven more on car insure with full coverage. Iinsured two vehicles w/ full coverage in KY for$700 because I set aside the deductable insavings. I would stay away from using collateralbecause if a bank won't loan you they money youshouldn't be borrowing it to begin with. Visit apersonal finance plan site like dave ramsey.com and don't go into debt in the first place so youhave money to save for what you want. Yes if youhave good credit you won't need collateral. Butwritting a budget and saving for what you wantwill get much further then taking out loans will. Always conduct yourself with integrity and moneywill find it's way to you.All hard work brings aprofit, but mere talk leads onlytopoverty.Proverbs 14:23, New InternationalVersion
- answered by Stephen
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