Should I take out a loan?

[Martin Taylor]

So, I want to get a long range rifle, I already know what I want and the way I see it with rent and classes and food I'll have the money saved up by the end of August.

I'm 20 and I pay my rent in cash because I'm subletting off of a friend so my question is, should I take out a loan to buy the rifle? I'm looking at trying to save up between 1600 and 2000 and I make $300 a week and it's a steady job so I'm not worried about losing it, but I'm not sure if this is a good way to get a credit rating going? Will the bank screw me over on loan rates?

Just looking for general opinions here.

I've got $600 stashed away in my bank account now and a $4000 truck to use as collateral. I just have no credit score at all and I need a place to start.

(The build will be a Rem. M700 SPS Varmint LH with an SWFA SS 10x42 and I'm still up in the air on rings and bases, harris bipod, notched legs, with the swivel, a quick cuff sling, and probably a drag bag from midway for the case just to start off)

 

[Sean the Nailer]

Re: Should I take out a loan?

No bank I know would give a loan for a firearm. Probably says I'm dealing with the wrong banks.

You may have to work on your request statement.

 

[MinorDamage]

Re: Should I take out a loan?

This is not the time to put yourself in debt over a rifle. Keep saving and keep yourself as debt free as possible. A rifle is a nice to have, not a need.

Josh

 

[Bruiser_Joe]

Re: Should I take out a loan?

do not take out a loan for a rifle, if anything buy a LH r700 base gun and do it slowly, and you'll be able to shoot it as you upgrade.

 

[kraigWY]

Re: Should I take out a loan?

Go buy a mosin or something and practice whule you save up the money.

Loans for play and toys isn't real smart. Before you know it some emergency will come up and you'll be maxed out on loans.

 

[cavscout1983]

Re: Should I take out a loan?

Seriously? A loan for a rifle?

You make $1200 a month dude. Save and look where you can cut out unnecessary expenses.

 

[tattoo13]

Re: Should I take out a loan?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: kraigWY</div><div class="ubbcode-body">Loans for play and toys isn't real smart. Before you know it some emergency will come up and you'll be maxed out on loans. </div></div>

A-freaking-MEN.
Never take out a loan for a toy.
If you will have the money in a couple months just have patience.

 

[Queequeg]

Re: Should I take out a loan?

You build your credit by paying your bills on time. Surely you must be paying for something besides the cash for your rent. Electricity, auto, medical, dental, insurance, Sewer/water, etc.

You can advance your standing, over time, by getting a secured credit line (collateralized with a deposit) from your bank and pay back any charges early or on time.

Save your money and buy what you can afford. Learn it at your young age and you'll be well ahead of legions of dumb asses who would tell you they are older and wiser.

 

[tansinator]

Re: Should I take out a loan?

Listen to all the above posters. Alot of knowledge there.

 

[Grimm]

Re: Should I take out a loan?

Two words that will save your life: Dave Ramsey.

 

[ckirkc]

Re: Should I take out a loan?

if i gave you the rig you described...Here's the deal, you don't have the money to feed it and train with it. you need a .22 (savage mkII, Rugger 77/22, etc) and any scope with a mil-dot reticle. you can learn the fundamentals and get a feel for wind, hold overs and the proper use of the reticle. Plus you are more likely to find the space to shoot and apply said fundamentals. Trust me, if you want to learn how to do this get the .22.

 

[ArcticLight]

Re: Should I take out a loan?

I used to do that debt thing, NO!!!!!!!!!!!!!!

If you take out a loan your truck will break down.
You're student loan will want a higher payment.
You'll have to move.

THINGS HAPPEN.

Why on God's green earth do you want a good credit rating?
You planning on bu ying a house or something?
It's over rated. (Credit)

The credit companies are a scam, they take your money, they WANT you in debt paying the interest but NOT paying the balance.
I have no debt other than my mortgage but I have equity and even if I had to drop the house, who cares..
What I do have now is a savings account, and so do you.

Once you break a certain amount in it, it's awesome to watch it grow....
You're at $600 - wait till you get to $1000 and then you'll be working towards $1500....
By the time you have the money you'll be thinking "Damn, it took me all year to buy this, do I really want this rifle???"
Kinda stops and makes you think.

Either way you'll do well saving up, you'll take care of it better because you will APPRECIATE it's value.

Better to build one on your own, you'll treat it better and you'll know everything about it.

Been there, done that - don't do it!

 

[rrflyer]

Re: Should I take out a loan?

Hell no

 

[armorpl8chikn]

Re: Should I take out a loan?

Save!

 

[Martin Taylor]

Re: Should I take out a loan?

Fair enough, I've guess I do have 3 other toys to play with, I was just wondering. 3 to 4 months isn't that long to wait, I was just thinking because everyone always tells me about how important it is to have good credit and I don't have any credit maybe I should take out a loan for something I know I can cover just to get credit.

Obviously I won't after reading this, it was just an idea.

Thanks guys.

 

[bachelorjack]

Re: Should I take out a loan?

Those people are idiots. Most people in this country are when it comes to money and finances.

Look at it this way. A good credit rating means you are a reliable and good payer of interest to someone else. A poor credit rating means you don't pay a lot of interest reliably. A bad credit rating means you start paying interest, then decide you just are not going to anymore--doesn't matter what they come take from you.

If it was called a 'pays like a bitch' score would it still matter to you? Want to know how to get a loan? Go sink some money in a savings account. They will be all over you to open a credit card or sign for a loan.

 

[Tactical]

Re: Should I take out a loan?

Son, been there. Tell you what when you get the rifle just send me a PM and I will send you a sling no charge

 

[Captain Moroni]

Re: Should I take out a loan?

When I was younger and slightly dumber than I am now I took out a personal loan to buy my first rifle. Looking back it was incredibly stupid I ended up paying over $2000 for a $1000 rifle. Learn from someone else's mistake DON'T DO IT!!!

 

[TCA4570]

Re: Should I take out a loan?

Personally. I usually get a better deal with cash in hand.
Be open to the rifle.
Use and learn what you have scope wise.

Can you use an old 2-8 Luepy on an old .308 sporter?

Not the best set-up, but what we had.

Take a loan?

F-That!

I'll put a broken Tasco or Simmons on something you wish you had.

 

[baddeerhunter]

Re: Should I take out a loan?

I've been waiting to buy my first precision rifle for easily six months. I'm getting pretty antsy now but i've been saving and its going to be sweet when I pay for everything in cash! "Cash is king, debt is dumb" - Dave Ramsey

 

[ToddSt1]

Re: Should I take out a loan?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Grimm17</div><div class="ubbcode-body">Two words that will save your life: Dave Ramsey. </div></div>
+1 for Dave Ramsey

 

[maxpower220]

Re: Should I take out a loan?

I am debt free. It took a long time to get here because I did not have a good upbringing when it comes to money. While everyone is right, don't take out a loan for a rifle. I do think that you need a good credit score. If you have no credit score, that is fine. If you have a poor credit score that is bad.

Odds are, you will want to buy a house and a car in the future. You will need to have a good credit score for those items. Since you are sub-letting, I assume that you don't have bills in your name (cable, electric, water). Those will help your credit score.

 

[remau308]

Re: Should I take out a loan?

Hey Caeli,

I am also 20, in school, and only make $250 a week (they cut hours

) . Yet, I have been building my rifle since last fall. I now have about $3,200 invested in it. It is a "M40A5" with a Badger 30MOA base instead of DD Ross, the action isn't clip slotted, it doesn't have the EFR on the front of the stock, and the barrel is a Rock Creek instead of a Schneider. I have everything else pretty spec besides the Schmidt and Bender, but I've topped it with a Vortex PST instead which is a GREAT value optic. The point is, set up your priorities, eat ramon, and good things will come more rapidly than you think. I'm picking my rifle up from my smith this weekend

oh, and I almost forgot...don't buy anything you can't pay cash for with the exception of a house, and maybe a car. If you can't afford it other than those two, you probably don't need it, and no one needs debt.

 

[remau308]

Re: Should I take out a loan?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Tactical</div><div class="ubbcode-body">Son, been there. Tell you what when you get the rifle just send me a PM and I will send you a sling no charge </div></div>

Sling no charge?! lol I wish I posted something like this 10 months ago hahaha I'm still saving for that notorious TIS sling and flush cups though, so you may be getting a call in the near future.

 

[The Mechanic]

Re: Should I take out a loan?

Ever thought of joining the Marine Corps? You get to shoot a lot, and the rifles are free!
Just sayin'

 

[Martin Taylor]

Re: Should I take out a loan?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: The Mechanic</div><div class="ubbcode-body">Ever thought of joining the Marine Corps? You get to shoot a lot, and the rifles are free!
Just sayin'</div></div>

Got rejected from Annapolis for a medical disqualifier, currently trying to get a waiver, I might ship out at the end of the summer for the Navy (apparently they're more amicable to helping you join if you've taken calculus)

 

[Icallem]

Re: Should I take out a loan?

Couple of things that have always worked well for me,
one, never borrow money for toys,
two, having good credit.
You indicate that you have $600.00 saved at this time. Someone recommended to keep saving and watch it grow which is good advice. When it has gotten to $1,000.00, you could put it in a CD and then if you want to work on your credit, borrow against the CD. Make the payments and when finished, you still have the CD and you have started working on your credit.

 

[D_TROS]

Re: Should I take out a loan?

I know this is way more amplified, but bought a house, lived there 2 years and sold it for 10k more than I paid. I still had to bring money to the table for BS fees. My monthly payment was 1500, for 2 years equals 36k. Guess how much it paid down my principle? less than 2k. In 2 years, the bank made over 34 THOUSAND dollars from me. Obviously more money involved, but same concept; you have money, they going to get it. Dont borrow. Debt is dumb. so true.

Regards,
DT

 

[Mo_Zam_Beek]

Re: Should I take out a loan?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Tactical</div><div class="ubbcode-body">Son, been there. Tell you what when you get the rifle just send me a PM and I will send you a sling no charge </div></div>


Stand Up Dude....


Very nice Mike.



Good luck

 

[ubet]

Re: Should I take out a loan?

Debt is dumb, I am still paying off two nights at a whorehouse in Reno and a transmission. Dont get into debt, you WONT get out.

 

[btyeung]

Re: Should I take out a loan?

Couple of thoughts. You need a rainy day fund which only gets touched for certain very severe conditions. The amount, could be 1k or however you want to set it. Another thing to consider is to aim for a few months of cash on hand. I don't remember what the ratio was, but it was for every year you've been working, you might want to have an extra month's worth.

That sounds like a lot to save, but there are many ways how to do it. It's not so much how much you earn or spend, but how much you save...or if you're a business, how much you get for what you spend, simply put. The rifle is very low on the priority list.

 

[Martin Taylor]

Re: Should I take out a loan?

That last one makes a good point as well, my rainy day fund is only 400 right now (that aside from the 600 I have set aside), I should probably increase that a bit...

Thanks Bryan

I think, I have learned a bit from this thread and I think it's a fairly well resolved issue at this point. Thanks guys.

 

[30/50]

Re: Should I take out a loan?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Grimm17</div><div class="ubbcode-body">Two words that will save your life: Dave Ramsey. </div></div>
A++ to that
My wife and I went through his financial peace coarse and it changed our lives.
stay out of dept.

 

[Toddcal13]

Re: Should I take out a loan?

Every year you work, your rainy day fund should have the same corresponding months of $ on hand. I.e. If you've been working 10 years and your monthly expenses are $10k you should have $100k in cash savings

 

[Guest]

Re: Should I take out a loan?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Caeli</div><div class="ubbcode-body">So, I want to get a long range rifle, I already know what I want and the way I see it with rent and classes and food I'll have the money saved up by the end of August.</div></div>

Never, an I mean Never, borrow money for any "Want" no matter what it is or how bad you want it.

Wants come an go, needs are much different.
What happens if you trash you truck, get sick/hurt an can't work, your job goes away or something else. The Rifle will wait, your safety net will not.

 

[El Vaquero]

Re: Should I take out a loan?

You sound like me when I was your age not too, too long ago. Don't get the loan and don't use your truck as collateral. Honestly, when you get the rifle it will be shot for a short while then it will collect dust in the closet. Save your stash money. An emergency will come up and you'll need it. (tires, engine problems, etc...). If you almost have the cash just keep saving, there's no rush. You already know you're going to get it.

I screwed up my credit within a year when I was 19 with a credit card because there were things I thought I needed. I bought too much and couldn't pay it back. It took almost 6 years to get my credit back on track. Save your money and do it the right way. You don't need credit if you have the cash!

People may disagree with me, but read some Dave Ramey books. They give you a better direction financially.

 

[Bill Larson]

Re: Should I take out a loan?

<span style="color: #FF0000">NO.....!!!! [color:#FF0000] </span> [/color]

 

[shooterman_zero17]

Re: Should I take out a loan?

Save your money and go get a .22LR instead.

 

[HOGGHEAD]

Re: Should I take out a loan?

If you are in College then you are just starting out. So let me give you the best advice that anyone can be given in life.
The bottom line is you either go through life paying interest. Or earning interest!! I hope I don't have to explain which one is best.

Save 10% of everything you make for the next 30 years and you will be able to retire with a ton of money when you are 50 years old. And NEVER NEVER NEVER borrow money. If you can't pay for it then you don't need it. I waited almost 25 years to buy a house. And I payed cash for it when I bought it.

Put 10% of every check away and never touch that money. Buy good dividend paying stocks and re-invest the dividends. Man will you be a happy camper when you turn 50!! Tom.