financing question

[Sparkles2303]

so i am trying to decide how exactly i want to pay for my BA. I went to capitalone and carecredit and researched their loans....the interest rates are RIDICULOUS!!! So i am thinking about just taking out a personal loan at a bank. I found a loan through a bank for 5% interest and capitalone/carecredit were well about 20%!!!

my question is... if anyone took out a personal loan...or HAS before...do you have to tell them the reason? like. breast augmentation surgery?? IDK how i feel about broadcasting it to ppl IDK !!

[GingerIsALady]

Ya, Capital One I know has high interest. I used them for $5400 but I knew I would only make a few payments and then have it paid in full. So I was ok with it. It is now paid in full so thankful I don't have that to worry about.

If you're going to get a loan, it makes sense to find one with the lowest interest, especially if you plan to take the loan to term. If you can get a personal loan for a much cheaper interest rate I would go that route. I have no idea if you have to tell them the reason though. I hope someone can answer that.

[slecompte]

I took out a personal loan for my BA. You don't have to go into detail about it. I just said that it's for surgery. I didn't indulge details of what kind. It's "personal"

[Jenster520]

I took out a personal loan before, they do not ask why. And if they do, tell them it's for personal business.

[Sparkles2303]

With a personal loan.. does anyone know when payments begin? I can't have my BA until late May at the earliest, but i want to book my date within the next couple of weeks and i want to make sure that i have the money for the surgery. so that means i'd have to apply for the loan in the next few weeks but i won't actually need it until may..does anyone know how that works? or when you book your surgery date can u pay the amount in full then??

[kpang78]

With a personal loan the payments begin the month after you take the loan. I can understand your dilemma: on the one hand you want to make sure that you can actually PAY for the surgery before booking it, but that would involve taking out the loan now, and paying interest on it. But if you don't secure the money now and then you don't get the loan when it's time to pay for your surgery, then you're in a bind.

With all that's going on with the lending industry, I think it's better to get the loan now instead of later. It's going to get tougher and tougher to borrow any kind of money..even student loans...as lenders become more cautious. Ask your surgeon if he'll take the full payment now, from my research they'll refund it up until two weeks before your BA date, minus the initial deposit if you change your mind. That way you won't be sitting with all of that loan money and be tempted to spend it. Also, when you take out the loan make sure it's a fixed rate, and find out how much the monthly payments will be. They might give you a great rate but your monthly payment could be more than you can afford.

Another option would be credit cards. Not always the best, but if you have good credit you could take out enough to pay for your surgery with reasonable interest rates. Just make sure you find out how long those interest rates last because sometimes they jump up after a year, sometimes to more than 20%! Doing it this way means you don't have to pay interest until you start using it.

HTH!

[cas3883]

The interest rates on those are just too high! I'm paying cash.

[littlebit177]

I used a care credit card....my interest isn't too bad (well, its high but i don't plan on taking it the full term lol) i make atleast double payments each month and then some "chunk" payments when i can. i did it to improve my stupid credit lol i used it for 5K and in just 2 months i have about a grand paid off (money has been tight so i have made just double payments lol) i'm about to make another $500 payment then a grand here in just a month or so.

[slecompte]

Originally Posted by cas3883

The interest rates on those are just too high! I'm paying cash.

Just depends on the bank and your history. I got an 9.5% interest rate compared to 20% with most financing companies. Not everyone has the means to fork out cash..hence the reason they have to finance in the first place.

[Twilight]

Hello

I saved up 1/2 & put the other 1/2 on an interest free credit card.
When the 0% introductory offer ran out after 9 months, I did a 0% balance transfer to another interest free credit card


I thought about a personal loan but doing it my was better for me.

xx

[deelicious]

If your not looking to use the money right away, then what you want is a line of credit. No, you don't have to divulge any personal information regarding your surgery... but be prepared-- they will ask for it.

Keep in mind, most banks require a minimum credit score of 670 to be approved. Approval is based on many factors, but your credit score is a biggie.

Also, if you own a home, then perhaps you'd be interested in taking out a home equity line of credit (heloc). Basically, this type of loan is for home improvements, but they never ask for proof that the money was spent on your home. This is a great loan for BAs, as you can write it off at the end of the year.

[Sparkles2303]

what is the difference between a line of credit and a loan? that has always confused me... I'm not worried about getting approval or not...i just don't want to tell everyone i am having a BA!

[kpang78]

A line of credit is kind of like a credit card, they tell you that you can borrow up to a certain amount, kind of like credit limit. With a loan they give you a flat out amount that you ask for. The line of credit you can tap into as you need, a loan you start paying off the month after they front you all the money.

[Ivy]

Just a suggestion....

You might want to wait to see which PS you are going to use. Most of the time they have loan options (through lenders/banks) that you can check out. The rates might be a little lower if you go through your PS office because of their relationship with the lender.

I wouldn't suggest that you apply for any of them until you know the interest rate and terms. If you aren't comfortable with them and apply just to see if you get it, you will have the marks on your credit report and it will look like you are high risk because you will have a lot of inquiries on the report when they look at it.

I paid half cash and half credit card (low interest CC, that I already had).

[Sparkles2303]

my bf and i found an apartment we like and wanna move in. to do that of course they need to do a credit check..i know it hurts your score to have a lot of ppl looking at your credit. i have good credit i am just afraid if they look at it for the apartment that i won't get approved for my financing and i dont want anything to screw that up!!

does anyone know if it'll have that big of an effect?

[kpang78]

You should just get a copy of your credit report yourself, since that won't affect your score at all (it's a good idea anyway so you know where you stand). Then just submit that part to the place where he's applying and tell them that you prefer it that way instead of them pulling your credit information. I doubt it will affect your score much, if at all, if only one place pulls your credit, but if he's going to be applying to several places and they need your score too then you should get the report yourself. If they ask why just explain to them that everytime someone checks your credit it could affect your score (which they should know anyway).

HTH!