Buying basses with credit [poll]

[tb-player]

My first ‘nice’ bass was a beautiful Tobias Classic 5. I played it at Chuck Levin’s Washington Music Center and just HAD to have it. This was before the days of Affirm, PayPal Credit, Pay-As-You-Play or other 0% financing deals available today. So I went to the bank and got a personal loan (I was young, dumb and GASsy… sorry!).

I eventually paid it off. But it started a cycle of buying gear on credit and paying more than I should. That turned into me always carrying a credit card balance, which turned into me always looking for the latest 0% balance transfer offer… you get the picture. I became addicted to revolving debt.

These days I’m a little older and hopefully wiser. I no longer carry any credit card debt. But I do use my rewards card for large purchases, to get the points. 2% cash back on a $4000 bass is a nice little bonus discount, right?

Sometimes I’ve used PayPal Credit to make a bass purchase, since they do 0% for 6-months. I like that when I have gear for sale. It kind of keeps my gear cash inside the PayPal bubble and out of my real money.

I’ve also seen the ZZounds/AMS thing where they charge your credit card monthly. That seems cool, although it usually comes with an application fee and a hit on your credit. Not as sure about that one.

Anyone else creatively use credit for your gear purchases? Do you have an issue paying interest on a piece of gear you don’t have the cash for? Or do you you only pay in full?

 

[mrcbass]

Credit cards that get paid off every month.

 

[Joe Nerve]

Quicksilver offered $200 on the first $600 spent. I opened an account and used that to buy a Nordstrand Acinonyx.

I don't buy anything that I can't pay off in one payment.

Before I was rich and able to do that , I used to put $5-$20 in an envelope every week, as though it were a bill payment - to myself. I labeled the envelope bass, and the cash grew quickly. Takes some patience, but it's much better than paying off a credit card. Keeps my credit score in the 800s, too.

 

[RattleSnack]

I have couple of friends working in banks, I took their advice long time ago: to stay away from credit card debt. All purchases I make are for cash.

 

[MrClassicMetal]

I have couple of friends working in banks, I took their advice long time ago: to stay away from credit card debt. All purchases I make are for cash.

Dave Ramsey approves!

 

[4SG]

 

[joelns]

The only things I buy anymore that need financing or take time to pay off are health care, cars, and my house.

Gear I don't buy unless I have more than enough cash on hand to pay for it outright.

 

[dalkowski]

A bass is always a discretionary purchase for me, so it's cash on the barrelhead.

 

[James Collins]

My answer is credit card unless the maker only accepts cash.

But two things:
1) I always pay off my entire credit card balance every month, so there is no interest.
2) My credit card among other things gives me cash back and insures my purchase for no additional fee.

Unless someone is just really bad at over extending their credit, I don't know why you would pay with cash ever.

 

[WI Short Scaler]

I made one purchase for music gear on credit. It was for a brand new Simmons drum kit with the rack setup which was pretty new at the time in the late 80's. My marvelous Mrs is the daughter of a banker and she explained to me the error of that decision. Luckily I got out of it without too much loss but never did it again.

Since that time all items musical are paid for in full at time of purchase.

 

[Medicine Man]

So buying with a credit card gives me travel rewards and some extra buyer protections, but I'm not hurting for cash to just pay the card off every month. Have I taken on debt to launch a band in my poorer days? You bet. Not every young band has a dude with a rich dad in it. But a lot do.

 

[viper4000]

I have couple of friends working in banks, I took their advice long time ago: to stay away from credit card debt. All purchases I make are for cash.

This is both good and bad advice. On the good side, you never buy anything you cannot already afford. On the bad side, proper credit card usage and behavior is the single best thing to improve your credit score.

 

[BtaylorTheRogue]

Keeps my credit score in the 800s, too.

This is both good and bad advice. On the good side, you never buy anything you cannot already afford. On the bad side, proper credit card usage and behavior is the single best thing to improve your credit score.

Yeah. I convinced my GF to get a credit card. She was adamantly opposed at first, as she 'didn't want to ruin her life'. The other day she said it was probably the single best thing I had ever done for her: she has brought her credit up to the mid-700s.

 

[Rob112]

I like the 0% interest buys. Sometimes I don’t have the full amount on hand, but I have the extra to receive the gear and still pay no interest. Plus you can get like rewards or bucks towards other purchases.

 

[MrClassicMetal]

On the bad side, proper credit card usage and behavior is the single best thing to improve your credit score.

Why would you want to improve your credit score? A high FICO score simply means that you've borrowed a lot of money. This is what the banks want you to do, so they can make money off of you.

 

[tb-player]

I don't know why you would pay with cash ever.

Same here. I pay every bill I can with my Chase Sapphire card. And I run every purchase through that same card. Then I pay it off every month. I literally accumulate about $2000 each year in cash back. That’s a dang bass!

 

[Mastermold]

Same here. I pay every bill I can with my Chase Sapphire card. And I run every purchase through that same card. Then I pay it off every month. I literally accumulate about $2000 each year in cash back. That’s a dang bass!

So long as you pay it off every month.

 

[zenrad]

Even if I have the money to buy something outright I often take advantage of 0% financing. This keeps my money somewhere that generates interest while I pay small amounts against the balance. I set calendar reminders so I don't miss the last payment.

 

[mini-milli]

Why would you want to improve your credit score? A high FICO score simply means that you've borrowed a lot of money. This is what the banks want you to do, so they can make money off of you.

So that you can get a loan for a house. I'm all for paying for things in full, but mortgage payments give you a lot more value than rent payments.

 

[mrperkolator]

Same here. I pay every bill I can with my Chase Sapphire card. And I run every purchase through that same card. Then I pay it off every month. I literally accumulate about $2000 each year in cash back. That’s a dang bass!

But how much extra are you paying in intrest, fees, etc. for each transaction? (for privacy reasons dont answer!)

In general, businesses would not stay in business by giving their customers more than they make. So I'd take a bet you're giving them $2k in fees/interest. I don't know your specifics, I'm just talking from general knowledge of how a balance sheet works. I could be wrong.