Author Topic: Which option for short term credit?  (Read 2929 times)

cosmie

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Which option for short term credit?
« on: October 01, 2012, 04:17:42 PM »
I'm trying to secure roughly $3,000 to $5,000 to finance the cost of relocating for a 6-month internship.

The options I can think of:

Personal/Unsecured Line of Credit
Personal/Unsecured/Signature Loan
Uncertified Student Loan (i.e. doesn't go through school, more difficult to get)
Vehicle (Re)finance (I would finance my fully-paid 2007 Mazda)
Lending Tree (not available in my state)


I'm 21 years old; I've had stable employment at the same place for 2.5 years, at approximately $1,600/month. My FICO score was 657 last time I got credit (a few months ago); credit card utilization, according to CreditKarma, is 28% (gets paid off every month, but the payments don't sync with the reporting).

I'm looking for either a short term loan or a long term loan without prepayment/early repayment penalties; therefore interest rate isn't that important to me. I'll be reimbursed for everything after I start, but I need to find the funds to set everything up in the first place.

What options would be the easiest/most likely to succeed? As a full time student (that works full time), getting credit extended to me in the past has been like pulling teeth. Especially since my income is cyclical (higher in summer, lower during semesters). Note that I have no one to use as a cosigner.
« Last Edit: October 01, 2012, 04:20:10 PM by cosmie »

gooki

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Re: Which option for short term credit?
« Reply #1 on: October 01, 2012, 05:59:18 PM »
Sell the car, buy something cheaper, use the cash to fund the move.

arebelspy

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Re: Which option for short term credit?
« Reply #2 on: October 01, 2012, 06:57:35 PM »
Perhaps LendingClub or Prosper?

Frankly, although you may be a stellar person, you aren't a good credit risk and companies won't want to lend you money.

Though I hate to recommend them, a personal loan from friends or family may be your only option.

Though I do like gooki's idea.

Or sell lots of stuff.  Then you don't have to pay to move it, and it can both fund and reduce those moving costs at the same time.
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jawisco

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Re: Which option for short term credit?
« Reply #3 on: October 01, 2012, 08:16:13 PM »
I would figure out a way to move more cheaply (2K) and then put it on your credit card.  Its a simple way to borrow money with minimal strings attached.

How long will it take you to pay say 2K back to CC company?

I would rather pay higher rates for short-term loan than borrow from friends or family...

cosmie

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Re: Which option for short term credit?
« Reply #4 on: October 01, 2012, 08:34:49 PM »
Sell the car, buy something cheaper, use the cash to fund the move.
That process is in the works. However, the car was a gift, and a fairly recent one. I planned on keeping it for at least a year before selling it in order to not offend the person that gave it to me.

Perhaps LendingClub or Prosper?

Frankly, although you may be a stellar person, you aren't a good credit risk and companies won't want to lend you money.
Lending Club doesn't allow Tennessee residents (along with 3 or 4 other states). I hadn't heard of Prosper, I'll give them a try. :)

As far as not being a good credit risk, I'm well aware of that. My income is so sporadic that it's hard for me to keep track of it; a bank looking at a snapshot doesn't stand a chance. Half of my take-home income isn't even countable by traditional lenders.

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Though I hate to recommend them, a personal loan from friends or family may be your only option.
I hope not. >_<
The only person I know financially capable of giving me a loan like that is the same person that gave me the car; and in doing so he made clear that the car was the last "boost" he was going to provide.

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Or sell lots of stuff.  Then you don't have to pay to move it, and it can both fund and reduce those moving costs at the same time.
I've already downsized quite a bit. And I'm not actually moving any stuff; at least not any more than fits in my car. If the actual moving costs were all I needed I'd just front them with a credit card. The loan would be to cover signing a new lease (deposits, first month's rent), utility deposits (young credit, lots of deposits), and any other random cost that comes up. Based on my past experience, I've needed to pay those with checks or debit, not credit. I'll need all of that in December to have somewhere ready at the beginning of January, while simultaneously paying my December bills for where I live. Due to the mind-boggling cost of living in the greater New York area (seriously, $3-$5/ sq. ft. per month?!), I won't have that much available.

I would figure out a way to move more cheaply (2K) and then put it on your credit card.  Its a simple way to borrow money with minimal strings attached.
I'm expecting the full move to be between $2,000-$3,000 (I'm seeing rents from $1,000-$1,600 for 1-bedroom apartments where I'm moving, with $500 security deposits). The cash advance allowances on my credit cards only total $1,000. If I find a complex that accepts credit card payments (i.e. not a cash advance), then it's feasible to use my credit cards (~$5,000 total limits on non-departmental cards)

How long will it take you to pay say 2K back to CC company?

I would rather pay higher rates for short-term loan than borrow from friends or family...
Easy peasy; hence why I'm not worried about the interest rate. I'll get my moving reimbursement and January housing allowance around Jan. 7th (~$1,800), plus my financial aid dispersement (~$6,600) around Jan. 20th.

Hm, on the CC ground, that's not a bad idea. I may give Chase a call and see if they'd like to extend my credit limit a bit (had the card 2 years now). That'd extend my cash advance allowance (if I need it), and all my problems would be solved. :D
« Last Edit: October 01, 2012, 08:38:14 PM by cosmie »

cosmie

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Re: Which option for short term credit?
« Reply #5 on: October 03, 2012, 07:16:14 PM »
Perhaps LendingClub or Prosper?
Thanks so much for the Prosper advice! :)

It funded about 45 minutes after going live. :o

arebelspy

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Re: Which option for short term credit?
« Reply #6 on: October 03, 2012, 07:39:40 PM »
Awesome.

Good luck on the move/internship.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.