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well, i know my suzuki deal is a credit card, but it is setup like a loan.. monthly payments that, if paid for x amount of time (6 years is what i setup my loan for), will pay the balance.. the interest will end up being in the $3500 area.. but that sounds like its setup pretty much like a loan, tho the interest accrues like a credit card (hence the high payout). Good thing i'm paying the loan off before the first payment is due

Yes, they seem quite like loans, but aren't.

In most cases, the loan payment will be more than the credit card payment. That's how they get you! They don't even file a lien!

Most people don't care, as long as they can afford their payment. I got a GE credit card type deal on my Laser Vision Correction - but interest free for 18 months. So I pay 1/18th every month, to pay it off by the time the promo is up. I am glad for the deal, but think it was worth it to pay interest on it!

Thanks to Candy for saving me a lot of typing. Although these "credit card" loans may appear to be the same as normal secured bank loans, they are not. The rules for revolving credit (i.e. credit cards) are totally different from the restrictions that banks have regarding consumer loans. The fine print that nobody reads will contain the gory details.

Lending institutions have the upper hand in almost every respect on a revolving credit account. When it comes to fees, penalties and interest rate "adjustments", they have all the options and you have basically none.

Well, you have nothing to worry about regarding these credit card type loans as long as you pay it back when you are suppose to and pay your monthly bill on time. There is NO EXCUSE to pay your credit card bill late. As long as your on top of things, there is nothing to worry about.

Chris8187 wrote:There is NO EXCUSE to pay your credit card bill late.

Wow. I wish I led the kind of life where this was true. From where I sit, unexpected layoffs, family deaths, injuries, and countless other emergencies sound like pretty good excuses to be late on a credit card payment.

Damian wrote:

Chris8187 wrote:There is NO EXCUSE to pay your credit card bill late.

Wow. I wish I led the kind of life where this was true. From where I sit, unexpected layoffs, family deaths, injuries, and countless other emergencies sound like pretty good excuses to be late on a credit card payment.

Alright, so I shouldn't have put an absolute in my statement as absolutes are easy to prove wrong. I also meant if you have the money and do not pay it on time, there is no excuse. Barring extreme circumstances such as things you stated, there is no excuse to pay your credit card bill late.

Also considering the OP is 19, I think we can safely rule out a number of those circumstances.

That's right, flynrider! Banks and credit unions are very very highly regulated, and must - under criminal, civil, and monetary penalty of law - abide by the Fair Credit laws. We get examined annually by national regulators (OCC for banks and NCUA for credit unions).

The main thing to remember is that if you get a crdit card - it will be from a super large national institution - no matter whose name and logo appear on the front. Even tho your account is likely unsecured, they can restrain your bank account - for mor than 2x what you owe, garnish your wages, and wreak havoc with your credit reports.

On the other hand - a local bank or credit union in your community will TRY to work with you on credit and collections. My Credit Union's collections department can do alot to help you - deferrals of your payments, "allow" a skip on a payment, and if necessary, they can reduce your payments with a good reason. Our philosophy is that if we HELP someone when they can't pay, they will pay us eventually if maybe a bit slower, and then, when they can pay, they will. Our collections team staff get flowers, candy, lunch from the members they have helped through hard times.

With any lending, at my company we don't look and judge whether something is "luxury" or not. We look to see if you can afford it or not. We consider ourselves to be somewhat of "dream builders" on both the consumer lending and commercial (my) lending side.... I came to this company after 8 years in banks, and it is an amazing place!

I do not understand the logic behind buying a motorcycle on a credit card type loan. ESPECIALLY if you don't intend to carry full insurance coverage.

We read regularly on this site (and others) about folks who have watched their motorcycle get trashed in a parking lot by some idiot driving a land yacht, or those who come out to their supposedly safely parked motorcycle, only to discover someone has backed over it in the night.

Don't do it! Have some patience, put away money in the mean time and get a real live bank or credit union loan if you must... or better yet, buy used.

P

23 and you haven't started building credit? You need to get going on that. Building and maintaining a good credit history is extremely important. In the U.S., currency and credit is king. It stopped being just money way back in the early 70s. Your future from renting to employment is based on your credit history. It will even be a bigger factor as other businesses jump aboard the credit history band wagon.

If you don't have good credit, banks, lenders, organizations, etc. are gonna make you pay. There's a LOT of money to be made from poor saps who aren't financially educated.

As others have stated before, your best and safest option is to buy with cash. Besides, $1k gives you a lot of options. Having the bike paid in full also minimizes your insurance cost. Insurance companies can rake you through the coals with the under 25 single/white/male crowd. Especially so if you have to pay full coverage.

In the mean time, start building your credit. Talk to your credit union and tell them you wish to build credit. Start small and pay consistently. It's the best financial advice out there for someone starting out.

Why is it so bad to get a credit type loan for a motorcycle? It still builds your credit. I got 7.99% interest rate for 2 years for my motorcycle. I'd say that is a pretty good deal.