Question
Should we get a credit card or loan?
So me and two of my friends are moving in together by the end of july. As of now, we need some type of cash, at least $2,500 max., in order to pay 3 months down on our selected apartment. I personally do not have any of credit but my friend has a little (its in the 800 range). Two of us will be going to school and one will be working part time, so we are wondering whether it is better for us to take the needed cash out in the form of a personal loan, student loan, or on a credit card. For those who've had some type of money experience feel free to answer. I don't wanna have anyone mess up their credit so I'd like some real input for this. Actually Reena, my friend with the job works full time. I will also be getting a part time job and so will the other girl. We have already added up and made an estimate for the apartment, security deposit, rented furniture, and utilities and have come up with a rough total. All of our parents know about what we are planning and one of the couples plans to help us out some. So yes, weve already looked over all of that.
5 months ago - 5 answers
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Chosen by Asker
honestly I think you should look at tha interest rates on each how often you have to pay it and how much do u have to pay at a time. I have messed up my credit do to tha fator of doin loans and not goin home n lookin at a budget of how much we make and how much my bills are to see if there is extra cash to pay back a loan! plus they try to tell you u can only pay by tens meanin if ur payments are 85 every two weeks n u want to pay more they will tell you u have to go by 10.00! which is so not true! they just dont want u to mess up tha way the computer calculate it cuz they have to manuelly change it in the computer! plus they want u to take longer to pay it so u have to pay tha full intrest rate back!! Just sit down with ur friend and do a budget before you sign anything!
5 months ago
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Other Answers
Please discuss this plan with your parents. Right now you have a lot of "wishful thinking" going on and little idea of the real world. A land lord isn't going to be impressed with your idea. 2 people with no income and 1 with a part time job that want to rent a place using a credit card to pay for 3 months worth of rent. Actually you will only have enough to spend maybe 2 months in the place. Because you have to pay a security deposit which is usually around 1 to 1.5 times the monthly rent. Your landlord will want 1st months rent and security deposit up front. If indeed you get to this point: Now you have a dark and empty apartment. Gas, electricity, phone, T.V., Internet... are not usually included in the rent. You pay to have them on and the utility company, phone company and cable company will want money upfront to get you started. To get a credit card that actually has a credit limit high enough your friend not only needs a good credit score but also a decent income. Getting a card depends on the score... but the credit limit will depend on your income. Chances are they won't give him a card with a limit high enough to get the $2500 out of the card. And even if then the card is pretty close to being maxed out and will cost a huge amount every month in minimum payment including interest. Besides the monthly rent you can expect to pay another $200 to $300 on utilities, etc. And you haven't bought any food yet or put any furniture in the place. Another minor detail... most landlords want you to sign a Lease. You make a commitment to rent this place for the next 6 to 12 months at x-amount of Dollars a month. If you leave early... the Landlord can demand that you keep paying rent until the lease is up. Discuss your plans of "moving out" with your parents. You need to learn what it costs to keep a household going for a month. Ask your parents to show you the monthly bills they have to pay.
by Reena- 5 months ago
Do you have a job? if so between the three of you make sure that your credit is kind of good. because they will asked you do you have a job.
by mad_1240- 5 months ago
Loan is the best thing compared to credit card. Getting loan in today's market situation is little tricky. But this has been made easy due to high competition in banking field. There are lot of bad credit loan lenders willing to give you loan for nothing. Their interest rate is also very much affordable. Bad credit loan lenders are available in internet. So the best option for you is to go online and apply for loan. loan-guides ... Above website will help you in getting a bad credit loan.
by Marky- 5 months ago
None of you are in a position to live independently. You have no credit, little income, and no backup plan. Many jobs are being eliminated due to the economy. There is no guarantee that you and your friends will remain employed because job security does not exist. A credit check is run on prospective tenants before they decide whether to accept/reject your application. Based on the information you provided, I would be surprised if anyone agreed to rent you an apartment. Apartments usually have a lease agreement for 12 months. If you get behind in bills, you cannot simply move back home. You will be required to pay 2-3 months rent as penalty plus an administrative fee all in one lump sum. Your landlord has a lawyer and will have no problem fighting you in court. You should all work on saving your money. Maybe next year you will have enough money for the down payment on an apartment. Credit cards and personal loans are not a smart idea. You will pay hundreds in finance charges and interest. In effect, you will be throwing money away. Your credit score will also be hurt in the process. Revolving debt is one of the worst things you can do.
by Heather- 5 months ago