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Financing -- Loans/question about a loan

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Question
Hello!

First of all, thank you for your time!

My question is pretty simple:   I'm a member of a credit union,and they are usually  pretty good in assinting me with my financial needs.

Several months ago i took out a personal loan with them.. I applied for a  $5000 loan, and on the application it gave me the option to drag out this loan for as much as 5 years, keeping my monthly payment low... But then the bank person called me and asked me what the loan  was for...   In truth, i wanted it for a bunch of things, but nothing specific.. Thinking it wouldnt matter, i replied that i needed it to pay off my taxes among other things.

A few days later he called me to say i was approved, but since i wanted it for taxes, they would need me to pay it of in 2 years.. Making my monthly payments  RIDICULOUS (around 240).

Since then, ive already paid that loan off, so i no longer owe them that money.. But im considering getting another loan for a bunch of little things, nothing major... MY question is : what is a good reason to give them so they  allow me to pay it off in 4-5 years, rather than  2??

thank you!

Answer
OK, first you should always be truthful with the banks, in fact, it is a federal crime to lie to them to obtain a loan fraudulently.

However, let's say that you want to improve your home and those little things actually add value to your house.  That is a great thing for the bank to hear as it adds equity to your house.

Or, if you want to fix your auto, again, great as transportation is necessary to keep your job.

However, if you simply want trinkets, or perishables then you can't blame a bank for wanting their money back as quickly as possible, as these items have no collateral value are probably simply impulse items, that you should rightly save a portion of your wages each week and then save up for a particular item.

If you think that "gosh, I don't want the item that badly to have to save up for it", then you probably really shouldn't' buy it in the first place.

Good luck.

Borrow only for the important things, things that will last or are necessary.

Frivolous or impulse items should never be put on a credit card, but should be planned for in a budget, and only allocated a small percentage of your annual salary.  

Financing -- Loans

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