I’m currently looking to purchase my first boat but would like to take a loan out. I thought i would be able to use a brokerage account as collateral but that seems tougher than i thought. I’ve just graduated college and don’t have a long credit history.
I have a reserve account that has been paid in full for 4 years and a 20K loan that was paid off every month and closed early.
That is the extent of my credit and i have no debts or other monthly payments. My score is ~615-630 I’m making plenty of $$ to finance a boat but since i am self employed and this is my 1st year working full time don’t have the proven income banks like to see. My question is whether i’d be able to get a loan for say ballpark 8K-10K if i paid down 35-40% or something large like that?
i’d love to get some input before i have anyone pull my credit.
Thanks for reading
That should be no problem. Try your bank first because that will be the best rate most likely & if no luck then try the banks the dealer uses but rate will be a little higher but doubt they will turn you down. You can get the rates from your bank based on your score & compare with the dealer rates to see how bad the difference is. Also most of the time the dealer can give you a ball park rate if you can tell him your score.
You’re not going to like this but buying a boat with a loan in your situation is plain stupid. Your credit score is going to mean a high rate. If you can afford to pay 35-40% of a 8-10K loan, then you can wait a year or two and just buy something outright and not finance it. Self employed and in the first year and going in the hole for a recreational want aren’t the smartest things you can do either, we aren’t exactly in a strong economy and I doubt your business is bulletproof either. Wait, go with friends, rent a boat but, don’t be dumb enough to buy one, not yet.
Mark
Pioneer 222 Sportfish Yamaha F300
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.
“Life’s tough…It’s even tougher if you’re stupid” John Wayne
There are lots of hidden costs when buying new, not to mention insurance and taxes. I spent about $5000 getting my new boat where I could fish. Buy yourself a used boat or fixer upper and learn how to not ding them up handling them in and out of tides and wind etc…
theres lots of places to buy boats cheaper, also look at the coparts site, awesome stuff on there sometimes.
http://www.copart.com/c2/copart_home_page.html
http://www.govdeals.com/index.cfm?fa=Main.Item&itemid=6556&acctid=357
http://www.govdeals.com/index.cfm?fa=Main.Item&itemid=6632&acctid=685
http://www.govdeals.com/index.cfm?fa=Main.Item&itemid=1090&acctid=539
2012 DLV 198 Carolina Skiff
Humingbird 998 Side scan and GPS
GPS trolling motor
My Cherokee indian name is asuvsgi nahna adadudi or Fishes on Credit
That’s some sound advice from Salty. When you buy your first boat you’ll quickly find that the boat payment is a drop in the bucket. You’ll spend a fortune to outfit it the way you want it. Then you have insurance, storage fees, maintenance, sea tow, etc. If your lucky, you have enough left over to put fuel in it once in a while. Just when you get comfortable with the expense…you’ll want a bigger boat. Save your money for a year or two. Hitch a ride with people. You’ll get a better idea of the type of boat that fits your needs.
If two wrongs don’t make a right, try three.
quote:
Originally posted by saltydog235You’re not going to like this but buying a boat with a loan in your situation is plain stupid. Your credit score is going to mean a high rate. If you can afford to pay 35-40% of a 8-10K loan, then you can wait a year or two and just buy something outright and not finance it. Self employed and in the first year and going in the hole for a recreational want aren’t the smartest things you can do either, we aren’t exactly in a strong economy and I doubt your business is bulletproof either. Wait, go with friends, rent a boat but, don’t be dumb enough to buy one, not yet.
Mark
Pioneer 222 Sportfish Yamaha F300
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.“Life’s tough…It’s even tougher if you’re stupid” John Wayne
Spot on.
11 Bowtech Destroyer
Remington 700 30-06
Very good advice from Salty.
If there is one piece of advice I could give young people starting out today, it’s to stay out of debt. Don’t borrow money for luxury items. You will lead a happier and richer life if you do. If you can afford 40% of 10K, then either save some more money or buy a $4K boat. There are a lot of good deals in this economy now.
I wish someone had told me the same thing when I was 21. It took me half a lifetime to come to my senses.
Capt. Larry Teuton
Cracker Built Custom Boats
Small craft surveying and repair
Dang Salty, where were you when I was young and dumb?
quote:
Originally posted by DFreedomDang Salty, where were you when I was young and dumb?
Buying a boat, on a loan, as a self employed kid right out of college with a credit score of 750+.
I learned a lot.
Mark
Pioneer 222 Sportfish Yamaha F300
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.
“Life’s tough…It’s even tougher if you’re stupid” John Wayne
i appreciate the input from everyone. Part of my reasoning for making the purchase now was to set myself up well for later in terms of my credit score. In some of the books i’ve been reading, taking a small personal loan is a good idea. I’ve used a credit simulator and planned out a scenario where i could raise my credit 90 points in a year which will come in handy when life gets expensive and i’m buying a house. I also figured i will never have a lower debt to income ratio than right now, but it also might be a good idea to wait.
quote:
Originally posted by dpitchi appreciate the input from everyone. Part of my reasoning for making the purchase now was to set myself up well for later in terms of my credit score. In some of the books i’ve been reading, taking a small personal loan is a good idea. I’ve used a credit simulator and planned out a scenario where i could raise my credit 90 points in a year which will come in handy when life gets expensive and i’m buying a house. I also figured i will never have a lower debt to income ratio than right now, but it also might be a good idea to wait.
Buying a luxury item that you may have to unload if things get tough isn’t any way to improve your credit score. It is a great way to ruin it though. Want to improve your credit score, get a credit card and pay it and the rest of your bills off completely every month. Don’t buy something you don’t need and only use for a fun time. STAY OUT OF DEBT if at all possible. Your credit score will improve and grow in due time.
Mark
Pioneer 222 Sportfish Yamaha F300
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.
“Life’s tough…It’s even tougher if you’re stupid” John Wayne
quote:
Originally posted by saltydog235quote:
Originally posted by dpitchi appreciate the input from everyone. Part of my reasoning for making the purchase now was to set myself up well for later in terms of my credit score. In some of the books i’ve been reading, taking a small personal loan is a good idea. I’ve used a credit simulator and planned out a scenario where i could raise my credit 90 points in a year which will come in handy when life gets expensive and i’m buying a house. I also figured i will never have a lower debt to income ratio than right now, but it also might be a good idea to wait.
Buying a luxury item that you may have to unload if things get tough isn’t any way to improve your credit score. It is a great way to ruin it though. Want to improve your credit score, get a credit card and pay it and the rest of your bills off completely every month. Don’t buy something you don’t need and only use for a fun time. STAY OUT OF DEBT if at all possible. Your credit score will improve and grow in due time.
Mark
Pioneer 222 Sportfish Yamaha F300
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.“Life’s tough…It’s even tougher if you’re stupid” John Wayne
That is the best advice someone can give you. There are MUCH better ways to improve your credit score. Pay your bills on time, establish a long period of credit history (i.e., don’t keep switching credit cards), and show a good ratio of available credit to cre
Oh and don’t marry a gold digging biatch who’s favorite words are “I want”. Those never help your credit score either.
Mark
Pioneer 222 Sportfish Yamaha F300
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.
“Life’s tough…It’s even tougher if you’re stupid” John Wayne
quote:
Originally posted by saltydog235Oh and don’t marry a gold digging biatch who’s favorite words are “I want”. Those never help your credit score either.
Marry a hot chick with money. That’s what I did. 
Semper Fi
18’ Sterling
115 Yamaha
Big Ugly Homemade Blue Push Pole
My dad always said, “Don’t marry for money…but don’t let it stop you!” Wise, wise man.