Should I take out a massive loan for no reason?

Carpe Natam

eviltimeban wrote: »

They won't take OTE into account, just what they can see you are earning (on your salary slips - they'll want to see those).

Commission isn't guaranteed. As someone who has worked in sales all his life, you should not count on commission. What if you have a bad month or quarter, and get no commission, or half what you thought you'd get? If it had been me, I'd have picked the 20K / no commission job without evening thinking about it.

Sales is a tough world and even the most successful guys will get burnt out after a while. While you are young, and it is a young person's game, you won't be young forever.

Think big, big data. And because it's passive, it's not a situation where it goes up and down (believe me - I've lived through that, and I couldn't do it). Subscriptions last from 6 months to 5 years.

It's essentially a situation where my salary will increase over time, there's no starting from 0 every month. :P

Milly33

I get where your coming from bar the house... I always earned enough money to cover my life and declined any loan offers and credit cards from the bank as my theory is if you don't have it to spend you save for it or you just don't get it at all.

Now on that one I also had a car I am weak for, and it came to let it go or do something... So I said feck it I would get a loan.. Went with the Credit Union who while they are great and I nearly trust them they are still a bit batty... But it turns out because I didn't ever have a credit rating it was more difficult.. I recently topped up the loan for another reason and only this time then was a credit rating applied to my name, as I took it out solely by myself with no guarantor.

In short I would think go for it, get a small loan out maybe for less than 5 or max five but use the money wisely. Maybe keep it in the account and only use it as a must.. It is very good to get a credit rating, and taking a small loan out does do this for you..

On the house don't buy your mad.. Rent

DeVore

Your capacity to repay will far outweigh any small loan repayments in history when it comes to a mortgage.
They will want to see a strong line of income (salary) into the account and from there they can deduce your capacity to repay. Ideally they want to see 3 years of this.

Taking a loan for the benefit of having a credit rating seems madly expensive given the interest rate you will have to pay. Saving for a good down payment and keeping your income strong are better approaches imho.

TimeToShine

I am struggling to understand how a 20 year old can possibly a) initially have a job which allows for a 20k pay cut, b) want to get a mortgage by the time he's 25 with a net salary of 2k and most importantly c) in spite of both a and b considers 5k-10k to be a "massive" loan.

Carpe Natam

TimeToShine wrote: »

I am struggling to understand how a 20 year old can possibly a) initially have a job which allows for a 20k pay cut, b) want to get a mortgage by the time he's 25 with a net salary of 2k and most importantly c) in spite of both a and b considers 5k-10k to be a "massive" loan.

1) I do, 20 and a half
2) it's a lot of money to owe if you don't get equity as a result.
3) can you stay on topic?

newacc2015

Humour Me wrote: »

Ireland doesn't have a credit scoring system though. Loans only appear in the ICB report if you go into arrears or default so taking out a loan and paying it back on time doesn't make a difference.

A mortgage will come to individual circumstance and with the Central Bank rules your priority should be to build up a deposit as you will only be loaned 3.5 times your salary. I'm not sure if they will take commission into account, again it will probably depend on your industry etc.

We do have a credit ratings agency. The ICB gives credit ratings using the same models as the US giving consumers FICO scores. All loans show up on the ICB report, regardless of default or not


OP if you want to build up a credit rating get a credit card and repay it 100% every month. You will get a credit rating and show banks you have the ability to repay loans

daheff

how about getting a car loan? at least then you can use the money to buy a car, and as you pay it back you get your credit history? And you have a car.(I'm assuming you drive...otherwise this isnt a great idea)


Otherwise I'd stay clear of the loan just to get a credit score.

A credit card that you pay off in full every month is also a way to start building a credit score. Try to pay as much as you can onto it and pay it off in full every month!