Blog :

Getting a loan for animals/ animal supplies...

Posted by Tasia Larsen at 9/2/2010 4:18:55 PM

Ok, So I have been struggling with this idea for some time. Some people say it would be foolish to get a loan out to buy an animal. I am not talking 10k or anything, just around 2k or so. I could afford to just pay outright, however I like the idea of building my credit, and I can easily pay off the loan.

People get loans everyday for other things... cars, houses, tvs, electronics, and some of which don't matter. Like everyone who uses a credit card for food, clothes, stuff... that is taking out a loan, regardless of the amount, you are still borrowing. Sometimes without much to show for it.

SO... basically I am venting cause I have had a few people in my life criticize me for the idea. I feel that if I buy a female large enough to breed, I can easily make back that money and pay it off, so I don't see what the big deal is. There is the risk of the animal dying, but the same risk applies handing out cash from the bank account.

I dunno... I just feel like it should be ok, if it is something I really want, I don't see why its a bad idea. Especially since I would not be borrowing over my means. Anywho... thats that.

Comments:

View Oldest First

Ashleigh ,	Posted At: 9/2/2010 4:53:47 PM
	Go for it. If it's something you can handle, paying it off I mean, then more power to you! :)

Ed ,	Posted At: 9/2/2010 5:02:32 PM
	Not trying to criticize, I just don't really understand this. You didn't mention what I would think the most important thing is - the terms of the loan (ie, interest, time period, possible penalties, etc.) For exmple, if you are making .5 percent with that $1000 in the bank but interest on the loan is 10%, taking out a loan wouldn't make any sense. As far as building up credit, I guess I'm not even sure what that means.

hun73r,	Posted At: 9/2/2010 5:24:59 PM
	IMO unsecured loans (which is what this would be) are not used to build credit and are only offered to those with excellent ratings to begin with. A bank will not lend 2K to make this purchase unless it is secured with collateral (vehicle title, paid off home, etc) and anyone willing to make this type of loan is going to charge an extremely high interest rate. If it is within your means to pay back the loan without the income from offspring then I would recommend saving up the money and earning interest on it as the sum grows. It will not be much interest but it is better than the 20-30% in interest charges you would have to pay for the unsecured loan and the risk of loss of the animal has been mentioned. What about the fact that she may not breed for you right away or ever? If you are counting on selling babies to pay back the loan then I would try to sway you away from this decision. Worst case opened a secured credit card and use that to make the purchase. It allows you to build credit if that is one of the motives and the monthly installments will be manageable if an emergency arrises.

Joe Farah,	Posted At: 9/2/2010 5:44:10 PM
	How many times have you successfully bred boas???

Joe Farah,	Posted At: 9/2/2010 5:46:16 PM
	sorry, i mean, how many times have you successfully bred the species of the adult female you are talking about? Were you thinking a female ball python or what?

gfx,	Posted At: 9/2/2010 6:13:46 PM
	People get loans every day and that's why so many people are stressed out and in over their heads in debt. Make a rule. Pay cash. You don't need loans or credit cards to build credit, its a massive bank industry scam. Taking out a loan to buy a snake is a really, really bad idea.

shellboa,	Posted At: 9/2/2010 6:46:24 PM
	Taking a loan for any thing other than a car, a house or your education is a really bad idea. Your best bet is to just start saving whatever you can where ever you can until you have the money you need. Skip the Strabucks, take a sack lunch, take the bus, get books from the libray, shop the grocery outlet, buy your clothes at goodwill and so on. You would be amazed at how fast all of that adds up and how quickly you can save 2k. The other thing is that even if you breed, in case you haven't noticed, the prices on Morphs are dropping..badly, quickly. Making back 2k on Ball Pythons is going to take you more than you think. Making it back on Boas is even more difficult. Ask katie how much profit she really makes when you consider feeding the babies, feeding the parents back to health, the minutiea of things like electricity bedding, water, cleaning supplies etc. compared to the actual selling price of the animals in question. I'm not saying don't breed, after all I breed both Balls and Boas, I am saying don't expect to make big bucks from it because the opportunity just isn't there unless you actually have ready capitol to drop on adult morphs and can make some of the newest combos that are pulling the big money. I breed because I enjoy the hobby and don't expect to get rich. If I make enough to balance what I put out on breeding feeders and all their upkeep and to pay some of what it takes to care for my collection, I'm thrilled. The guys you see on the web with the big names asking the top prices have been in this industry since before it was an industry. They have spent the time, money and energy to get the reputation that allows them to command top prices and part of what you pay for is their name. Again, I'm not saying don't breed just don't expect to get a profit. Also consider why there are reptile rescues out there and how they are contributed to. I do.

Aurora ,	Posted At: 9/2/2010 8:03:32 PM
	Echoing what shellboa just said, it's really hard to make a profit on animals unless you're a "big breeder." Even then it's no sure thing. Most small breeders put what money they make right back into the hobby - food, caging, other animals, etc. So yeah, avoid the loan. If you want credit, go the credit card route. Just remember there's still going to be interest.

Kate Graves ,	Posted At: 9/2/2010 8:35:35 PM
	Best credit card to get IMO is a home depot one. Not a giant intrest rate like sears and it can only be used at home depot also makeing it a safer card to have than one you can use anywhere. You can use it to build racks and such. My man built up his credit into the 800s in only a year with his card and we only use it for house repairs or animal stuff. Loans are a great way to ruin your credit quick and in teh end you'll pay them back more than you took from them. IMO it's a bad idea.

Tasia Larsen,	Posted At: 9/2/2010 9:24:53 PM
	I have a Bank of America CC. with 3k limit. Low interest rate too. As for building credit, I was always told that paying off loans would help as well. If I am wrong then I would rather do the credit card thing. I do have really good credit, so I am not that concerned about needing better credit. it just seems easy to grab the loan, and pay it off in four payments in four months. Then I can have the female ball I want and get going. LOL... I was not talking about doing it this month or even the next. Just an idea for the future. Maybe just using my CC would be a better idea, but the same principle is there that I would be borrowing money. I do know that balls are losing value, but the breeders are still not letting their breedable size females go for any less of a value. I am not talking about a pin female or something, I was thinking a lesser or something to make pastel lessers, or lesser bees or something cool. And No, I have not bred balls yet, but I have been doing A LOT of research on how, and I am finally ready to give it a go this season. I figure why start with normals that have little value and are already hard to find good homes for, and start with animals more people are interested in adopting. I am not looking to get rich, just enough to pay off animals and their supplies. That is all. I will wait till the time is right, And I will start saving to avoid the loan, or I will use my CC instead. I will have to do more research on loans from the bank.

Emily ,	Posted At: 9/2/2010 9:42:41 PM
	Sooo, if you weren't planning on doing this in the next month or so, but could pay off a loan in 4 or so months...couldn't you just open up a new savings account just for this animal? You can even set up a monthly automatic transfer from checking to savings to be done right after payday...that way you don't even really miss the $$ all that much, and you avoid paying interest! And IMHO, it might be better to look @ this investment as something that will bring you joy, not income. I can't say I've ever met a small time breeder that actually really comes out that much ahead...not that I've met all that many, but still.

Ed ,	Posted At: 9/2/2010 9:58:13 PM
	Am I missing something? Why would you want to take out a 4 month loan (presumably very high interest) if you already have the cash right now for the snake? You seem determined to pay more for the snake than you have to (ie, price plus interest.) Why?

Tasia Larsen,	Posted At: 9/2/2010 10:21:32 PM
	lol... no not determined to spend more on the snake. I was under the impression that bank loans can help credit. And I did say I would start saving... I was just talking about if something came up and I didn't have the money on hand and I didn't want to let it go. I also feel that the animal would bring me joy, and like I said above I am not expecting to make mad money. But I don't plan on trying to sell normals either. This entire hobby brings me joy, and if I buy one female that can make ma cool babies for the next few years, that would be a cherry on top. :)

gfx,	Posted At: 9/2/2010 10:39:46 PM
	A lot of people will take payments as long as the length is sane. If you're looking at a 2k snake and can pay it off over 4 months, the breeder taking payments is an interest-free alternative. Of course its not instant gratification, but its also not draining your savings of 2k in one shot.

Ed ,	Posted At: 9/2/2010 10:45:52 PM
	I'll be happy to offer you a loan for 18% interest. If you accept, your credit will improve, trust me. :) You did originally say, "I could afford to just pay outright..", so that's what I was referring to. Personally, I think it's a bad idea to even consider snake breeding a business or an investment, much less borrow money to fund it. Not making any moral judgement, but the morph market is basically a pyramid scheme if you look at it as a business or investment. And if you plan on selling, it is a business or investment. No doubt it brings you joy, just be prepared for the worst case - where you have to keep most of the babies. My humble suggestion would be to run the numbers before doing anything. Make a spreadsheet with all the estimated expenses, and then several scenarios such as "worst case" (ie, no babies, one of the pair dies, etc.), "medium case" (ie, small litters) and "best case" (ie, larger litter), with several different estimated prices. Seeing the numbers on a spreadsheet in black and white, imo, is always a good idea before spending a dime. Good luck!

Tasia Larsen,	Posted At: 9/2/2010 10:53:14 PM
	Thanks! if I have to keep babies fine with me. LOL... I love babies. hehehe. And I am in the position where I can keep them good and healthy for as long as I need to until I find them good homes. I am in it for business, just not to get rich. My NUMBER one reason is for the joy I feel when with my animals. I will do more research on the loans and breeder payment plans. This is why I post blogs like this so I can get input on things I would not normally have thought of before. Thanks for all the input!! It helps a lot. :)

OutkastBoa,	Posted At: 9/2/2010 10:56:15 PM
	You win some and you lose some! I'd say go for it if you feel up to it! I dropped 15k on boas and all my females died this past season, but I made my money back the first season! Now to turn around and get some more females! Don't get me wrong I loved my boas and just couldn't do any more for them!

Aurora ,	Posted At: 9/3/2010 12:06:27 AM
	Not to hijack the thread but... how did all your females die? That sounds horrible. :(

OutkastBoa,	Posted At: 9/3/2010 12:33:04 AM
	I moved and they where gravid! I had no choice but to move them! So I'm thinking stress!

Tasia Larsen,	Posted At: 9/3/2010 1:10:06 AM
	Wow that is sad. sorry to hear! I am thinking that the loan is still an option, but I will only do it if I feel the animal is VERY worth the money, and have already spent the saved money. LOL. Otherwise I am saving and selling a bunch of my stuff (not animals) to put towards shows and animals... I guess that is where I went wrong in describing it in the first place, I only want to use a loan on something that I have been dreaming of having, if I cant get the cash right away or something, and the breeder wont do payment plans.

Shannon ,	Posted At: 9/3/2010 10:06:11 AM
	I'd say don't do it. Building credit is a great thing, and it's great that we have the option to take a personal loan, but I see this as taking advantage and using it for something completely unnecessary. You don't NEED this animal. There are people who NEED a car to get to work and make a living to support their families. If you have the money to buy the animal outright, do it. If you don't have the money, save up and get what you want. It's much more rewarding. Sorry if I offended you in any way. Trust me, there are PLENTY of animals I'd love to have and hey, I could charge them if I wanted..but I'd rather work really hard for what I want. Plus, interest SUCKS!

Patrick ,	Posted At: 9/3/2010 12:57:09 PM
	In god we trust there for you pay Cash! Credit? who needs it? Agree with Julie on that. Payment plan, saving up, do whatever you can but stay out of banks, and cc's it will only end bad......

Ed ,	Posted At: 9/3/2010 3:09:36 PM
	The bottom line is that one shouldn't buy anything one cannot afford. :) There's nothing wrong with using a Credit Card, as long as you pay off the entire balance every month to avoid interest. In some cases, using a credit card is better than using cash/check, since you can dispute payments more easily if something goes wrong. And simply by paying off small cc balances, you have a history of paying off your debts, assuming that is really important (ie, "building credit.) As far as a personal loan from a bank, I don't see any way such a loan would be helpful, other than as a last resort in an emergency.

Member Login

User Name:	*
Password:	*
Remember Me

Forgot My Password

Our Newest Animals!

DN-26.25d/m

davidnj

23PSDB1026

tlbowling

Rebekah

BensDenReptiles

188858 Registered animals!

NEW!! See The Rest of the new Arrivals!

Thanks!!!

Thanks to everyone who helped test the new features. If you find any problems, please
Let Me Know.

Todays Birthdays

browncoatbreeding , inkling13 , RexoticPets , ImBooBy , Dennis c , Lords_pet , Lady_Iguana , blwcmb09 , sangmort , leaffire , MplsReptiles , Raistlyne , ds8110 , route66royals , pastytyler44 , FragMan3 , Leeann , siradam.y , lickthelizard , desparza28 , snakemansam , FLAcresties , Lion Gate Geckos , BigJoshT , SherryE , kingsd , gothkenny , J.a.s_snakecharmer , Foxy.Moron , nannersworld , Blondecountrygirl , ShakedownFrogtown , Abbyluvsgeckos , Cupcake8D , diplomatsonfire , dorian , chris_rhyne , DiablosCage , barceloneha2 , fotbolltrojor69 , Straycat610 , Pumpkin , Cupcake , Ivanboymn , cornlover , silverstar8766 , Stephenfag , Flukesba , Flashpaqkfi , loyalsissaly84 , Keypadaqar , Carpetoop , Camo_reptiles_Tx , RichardBeiny , jinxtheclown , cmoyers , Securityhfv , AndreyBum , Donkalion , Dormanhjt , ilqayeki , okanidasako , Treehouse Exotics , Jas_snakecharmer , Thom , mobios , Fortressfss , Ivanmem