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Getting a personal loan

post #1 of 35
10/10/09 at 2:20am
Thread Starter 
Hey guys,

I'm going to be graduating college in May and taking a relatively high-paying job at an investment bank ($70k base salary without discretionary bonus, which is not guaranteed but likely to be between 60-120% of salary) in July.

I'll need an apartment and furniture. My offer didn't include a signing bonus so I'll need some startup capital and am considering getting a $15,000 personal loan just before I start working in July so I can buy a bed, mattress, table, chairs, lighting, etc.... I don't want to ask my parents for money because they think I have more than enough squirreled away; however, I lost about 95% of it in bad investments during the peak of the financial crisis last year so I have almost no assets in my name.

My question is, how realistic is it that I can get such a loan? My credit score is excellent (I don't know the actual number but I've had credit cards in my name for a few years and they've just been paid off by my dad) and given my salary and even a modest bonus, I should have no problem paying the monthlies on a $15,000 3-5 year loan. But is the fact I have no assets a major hurdle or only a minor one?

Thanks!
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post #2 of 35
10/10/09 at 3:29am
Just go the Craigslist route, man. You don't need to have it all 3 months out of school.

Don't know shit about personal loans, but you could always carry a credit card balance for a few months?

No analyst signing bonuses this year, huh? Bummer
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post #3 of 35
10/10/09 at 11:02am
Highly unlikely you can get a personal line of credit with no assets. If you have to purchase some living essentials it looks like you will be signing yourself to the vicious circle of the credit card companies. Consumer debt is the worst thing you can take on when you are just starting out.

My advice, go slow and live within your means. Credit is easy, addictive, and it can crush you. I know as I have been there and wouldn't do it again, ever. It takes too many years to get rid of even $10,000 in consumer debt.

Get an army cot and sleep on that until you have the cash to pay for a mattress. Same goes for all home furnishings. Tough it out! You will thank yourself later for not taking the easy route.

My thoughts on acceptable personal debt:
1. House - mortgage
2. Car - if it is essential to life. In the US, NYC is probably the only city where one can get by without a car.
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post #4 of 35
10/10/09 at 11:12am
Just be patient. Sometimes you have to rough it. Sleep on the floor for 2 weeks, then buy a bed. Then a month later buy a couch...etc. After a year you will have everything, and have spent no money on the interest of a 15k loan. What is waiting one more year? Plus it will give you time to research exactly what kind of furniture you want.


AKA, you forgot school loans on your list.
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post #5 of 35
10/10/09 at 12:24pm
Quote:
Originally Posted by IUtoSLU View Post
Just be patient. Sometimes you have to rough it. Sleep on the floor for 2 weeks, then buy a bed. Then a month later buy a couch...etc. After a year you will have everything, and have spent no money on the interest of a 15k loan. What is waiting one more year? Plus it will give you time to research exactly what kind of furniture you want.


AKA, you forgot school loans on your list.
Good advice.
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post #6 of 35
10/10/09 at 2:05pm
Quote:
Originally Posted by IUtoSLU View Post
AKA, you forgot school loans on your list.

I'm guessing these were taken care of like his previous CC debt.
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post #7 of 35
10/10/09 at 3:22pm
Quote:
Originally Posted by rjmaiorano View Post
I'm guessing these were taken care of like his previous CC debt.

I was rsponding to A.K.A. who made a short list of acceptable large debts: home, car, and (what he forgot) school loans.
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post #8 of 35
10/10/09 at 7:10pm
Yeah, don't go into debt for consumption/severely depreciating assets. You can easily pick up everything you actually need on Craigslist for super cheap/free, and since most people don't like used mattresses, just pick up a cheap one at IKEA, same for lighting etc.
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post #9 of 35
10/10/09 at 7:12pm
why don't you just buy a mattress pad?
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post #10 of 35
10/10/09 at 7:15pm
Many furniture stores (I'm not talking about the national chains like C&B or Macy's, although they may have similar deals) offer low interest or no interest financing through GEMB for 12 months. You're looking for "starter" furniture, not Ethan Allen or heirloom quality, so you don't need to go to some craftsman shop at this stage.
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post #11 of 35
10/11/09 at 10:18am
Quote:
Originally Posted by IUtoSLU View Post
Just be patient. Sometimes you have to rough it. Sleep on the floor for 2 weeks, then buy a bed. Then a month later buy a couch...etc. After a year you will have everything, and have spent no money on the interest of a 15k loan. What is waiting one more year? Plus it will give you time to research exactly what kind of furniture you want.


AKA, you forgot school loans on your list.

IUtoSLU, you're advice is on target and succinct, but I don't entirely agree.

School loans are on the edge of acceptable debt. Why? Too many people take risky school loans that charge exhorbitant interest rates. That is a bad deal.
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post #12 of 35
10/11/09 at 10:29am
Quote:
Originally Posted by Benzito View Post
Many furniture stores (I'm not talking about the national chains like C&B or Macy's, although they may have similar deals) offer low interest or no interest financing through GEMB for 12 months. You're looking for "starter" furniture, not Ethan Allen or heirloom quality, so you don't need to go to some craftsman shop at this stage.

Debt sucks! Don't get sucked into it. Interest Free consumer loans will kill you, especially if you can't satisfy their payment schedule.

Cash is King.

Here is the formula for financial success:
1. Don't live beyond your means, which means don't spend all the money you earn.
1. Pay your bills the day they arrive in the mail. If the bill is more than you have in your bank account, pay that bill on pay day. Pay your bills before you spend any money on yourself.
2. Don't buy anything on payments (unless it is a mortgage or you have to have a car to get to work).

It took me 20 years to understand this. I wish when I was younger someone had explained it to me this way. Fortunately, I met my wife and she explained it. I finally listened. Today we are doing very well and continue to follow this formula.
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post #13 of 35
10/11/09 at 10:47am
Blow up mattresses are very inexpensive and quite comfortable. Bean bags, card tables for eating etc are a great way to get by. Cash is king. I carry the ability to be able to pay cash for just about everything I need as a badge of honor. If people want to badger you about starting out this way so be it, a few years from now show them your bank statement.
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post #14 of 35
10/11/09 at 3:27pm
I agree.... On a random note, I'm glad I kept my Personal Finance book from my first semester. Wish you had internet back in the day huh?
Quote:
Originally Posted by A.K.A. View Post
Debt sucks! Don't get sucked into it. Interest Free consumer loans will kill you, especially if you can't satisfy their payment schedule. Cash is King. Here is the formula for financial success: 1. Don't live beyond your means, which means don't spend all the money you earn. 1. Pay your bills the day they arrive in the mail. If the bill is more than you have in your bank account, pay that bill on pay day. Pay your bills before you spend any money on yourself. 2. Don't buy anything on payments (unless it is a mortgage or you have to have a car to get to work). It took me 20 years to understand this. I wish when I was younger someone had explained it to me this way. Fortunately, I met my wife and she explained it. I finally listened. Today we are doing very well and continue to follow this formula.
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post #15 of 35
10/11/09 at 8:08pm
Quote:
Originally Posted by Warren G. View Post
I agree....
On a random note, I'm glad I kept my Personal Finance book from my first semester.
Wish you had internet back in the day huh?

Dude I remember when an IBM PC 8088 and two floppy drives cost$10 grand. When I worked with my dad in 1990, I had to convince him that the office computers needed Windows. He balked. The first time I used the internet was in 1996 and it was dial-up, and had to use a VPN connection on my company provided laptop.

We didn't get home internet service (DSL) until maybe 1999. Things have really changed. Now we have fiberoptic service. Wife has a new iPhone, I have had three Blackberry's in the past four years, and I am connected wherever I go. If my XM goes out in the car I freak out.
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