Really cheap rates on Loans..

[Dominicinco]

I am starting my flight training for a Private Pilot Certificate this week. However, first I must find a good loan with Outstanding Rates. I heard Key and Fannie Mae have low rates, but not low enough for me~ Anyone know of some within the New York City Area. Its tough for me to go out to all the banks because of my hectic work schedule and I need to secure one by this week. Can anyone help??

 

[Toy Soldier]

Here are a couple of other options:


1. AOPA FINANCE PROGRAM
1-800-655-7620
Loan specialists are available
Monday through Thursday, 8 a.m. to 6 p.m.
Friday, 8 a.m. to 5 p.m.
Eastern Time

2. A student of mine got an "open credit line" on a home equity. They simply wrote checks and the withdrawals were applied to their home equity loan.

I have NO personal experience with either of these options however.

When I was learning, I actually took out a home equity loan, put it in the bank and wrote checks off of it to the flight school, etc. I also used that money to buy block time instead of paying "hour for hour".

 

[Toy Soldier]

Also, check out www.PilotFinance.com

Their rates vary from 9% to 18% - depending on your credit rating.

They also have a "pay schedule". For example, you can get a loan for $5000 and make 30 monthly payments of $198 (at 18%) - which entitles you to three lessons a week.

Just another option.....

 

[Dominicinco]

hey toy, thanks for the suggestions. I already called AOPA which transferred me to MBNA bank. I wasnt approved for the loan with them though, boooOOo.
I have a question regarding credit cards since I dont think I will get a loan through these banks. Is it a safe bet to put your training cost on a credit card? I mean isnt it the same thing with about 11% interest on the card or 11% interest loan??
I can probably get a credit card more easily than a freakin loan. anywho, topic is open to discussion. thanks again!

 

[KnowledgeSeeker]

Dominicinco,

I would highly suggest putting your training on a credit card. I did that for my part of my commercial single and all of my comm multi. Here is my reasoning.

1. when you get a loan you start paying interest on it right away...with a credit card you only pay at the next bill cycle (although some government student loans don't start until after you finish school)

2. with a loan you pay interest on the whole lump sum (whatever that may be) on the credit card you only pay as you go and only have interest on what you have spent so far

3. when you repay a loan you generally have fixed payment that may be rather high. With a credit card some months i could only afford the minimum monthly while others i would pay upwards of 500 a month.

4. If you get a credit card with no interest for one year your laughing at that 9-15 percent loan.

The downfalls with a credit card is you may not have a high enough credit rating to get a high enough spending limit (but then you probably can't get a good standard loan anyways). to get around this have several cards. Having several cards can be intimidating and you have to be on your game to keep all you accounts paid (try online bill pays for them to keep up on it).

The other deal too is that between the cards you can usually transfer funds back and forth to keep your percentage rate down. Doing so hurts your credit a little, but its worth it. Also once you have established that you are worthy of the cards (paying back on time for a year) you can call the bank and they will probably lower your interest rate over the phone just by asking.

Myself i put $7,000 on cards (all paid off now) and kept up on the payments wich actually is the reason i have A++ credit. So if you do it right it can help you in the long run too. If you have anymore questions or want some more tips about going that route PM me.