[TalkofDC]

I pulled all of three of my credit reports. Here is my story.

I have about 5 years worth of credit history and a mix of revolving and installment loan accounts. I have an 80% debt to credit available load between all of my accounts. I have NO late payments and NO negative marks on my credit record. I have more than a few inquires (4-5) from when I was working with a mortgage broker right out of college b/c I had this fantasy that I could possibly buy a condo/townhouse for the same price of renting a home in the D.C. Metro area. Most of those inquires are from 2006 and they will fall off Sept/Oct of 2008. I was not aware at the time how they affected your credit report/score at the time. Now I know. My last credit inquiry reports as of 1/08 and I was trying to get a $5K unsecured loan for a bike to avoid full coverage insurance. I was denied due to having a short credit history and high balances on my revolving accounts. I have since brought down my REVOLVING accounts drastically to about 50% debt to credit available and will be targeting 30% by the time I re-apply for a SECURED loan via my bank or credit union. I felt another reason I was denied for the unsecured loan was because it was just that...unsecured and my credit was not strong enough at the time for that type of loan. I did get approved for $2,500, but I needed $5K. My installment accounts (car loan and student loan) make up the largest portion of the 80% debt to credit available load that I am carrying.

What are the chances given my credit history (no late payments, paying more than the min. required, 5 years of history) that I will get approved for $5k to buy a bike? I am slightly nervous about my installment loan ratio, but I really can't lower it now as it takes time to pay these types of loans off and paying them early will not help. I always viewed installment loans as good credit b/c they give you an opportunity to carry a higher credit worthiness and as you pay it off it will help you debt to credit available ratio. My credit score lies between 660-675. Am I suffering from wishful thinking that I will get this loan? Is carrying a high INSTALLMENT loan debt to credit load that unfavorable in the lenders eyes or is it possible that they will cut me some slack seeing that I am never late? My income is slightly over $50k per year, and the two installment loans that I have are not unscrupulous (sp) as I needed a vehicle and I had to pay one year of college in 2005. The balance of those loans are not high given my income. They are not over $25K which is not even half of my income. I have given full details of my situation and this suspense is killing me. I have waited and been patient with my finances to make this happen.

Please spell me the buy a bike with cash argument. I know some people do it and some people don't. I just wanted a general opinion on what others think and will tell me straight up and not just to tell me what I want to hear like a friend or family member would do.

If I don't get this loan at the end of the month, I am going to be fighting myself hard as crap to NOT get a dealer loan, but I am already going to be approaching the end of the riding season her by waiting until Aug. to get my bike (which was apart of my plan...prices begin to drop). Any insight will be helpful as this is probably my LAST post on this subject (I have posted generic loan, credit, financing posts prior, but this is as juicy as it gets).

WHAT DO YOU THINK?