Cash. And only when I feel like I am well above my emergency fund.
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Buying basses with credit [poll]
- Thread starter tb-player
- Start date
Clearly you use your credit cards thoughtfully. A great many people don't, for any number of reasons (desperation, financial illiteracy, etc). I've been there, ain't going back, no damn way.
If you plan on using credit for anything, yes, your credit score matters- but if you don't plan on using credit, it doesn't matter.
It also means that you've met the contractual obligations of that debt.
But I get what you're saying, I have a pretty high FICO score- and it went UP when I took on a mortgage 2 years ago- but that was also when I was in the most debt I've ever been in, with no equity or market value to make $$.
He is not directly paying for the rewards if he is paying off before accumulating interest. The sellers allowing him to use his cards and other cardholders (that pay interest) are paying for them. There is a payment processing fee on transactions that is almost always paid by the seller (unless they choose to pass it along). Now you could say that the seller inflates prices to account for this (they do), but if cash price = credit price then the buyer is paying it anyway.
I'll offer a contrary opinion. There is a lot to be said for using other people's money to fund your purchases, if you do it carefully. If I was going to buy a $9,000 Fodera, I'd definitely finance it because I can likely make more by keeping my $9,000 invested than I will pay in interest charges as long as I'm careful about my funding source.
Using a credit card also offers a layer of consumer protections that don't exist with any other payment form. It used to be that those protections ended if you paid the balance off, but I'm not sure if that's still the case. Back when I was in that business, I don't think we ever enforced that aspect of the rule.
For the record, a FICO score is not an indicator of how much borrowing you do, though that is a component of the score. It's more of an indicator on how you manage your borrowing. There are many different FICO scores, but they generally attempt to predict your likelihood of defaulting within a given timeframe. People who don't ever borrow typically have very low credit scores because there's not enough data to predict how they will likely manage debt.
Using a credit card also offers a layer of consumer protections that don't exist with any other payment form. It used to be that those protections ended if you paid the balance off, but I'm not sure if that's still the case. Back when I was in that business, I don't think we ever enforced that aspect of the rule.
For the record, a FICO score is not an indicator of how much borrowing you do, though that is a component of the score. It's more of an indicator on how you manage your borrowing. There are many different FICO scores, but they generally attempt to predict your likelihood of defaulting within a given timeframe. People who don't ever borrow typically have very low credit scores because there's not enough data to predict how they will likely manage debt.
It's very possible, and probable. It's worth looking into, as everyone's credit cards are probably a bit different. What isn't different, is the possibility that the credit card company will give you $2k from the bottom of their heart. That possibility is 0. Someone paid for that $2k.
Ha! My wife is a die hard Dave Ramsey groupie.
As was already explained, that 2K is coming from merchant fees and/or from the pool of interest paid by others. We run as much as we can through our no-fee, points back CC and pay in full every month.
Another thing about FICO scores is that they are used by prospective employers that involve government security clearance. People with debt issues are seen as a target for nefarious activities.
Because small merchants with thin margins typically have to pay 2.5% to 3.5% in fees on your purchase, so that the bank that issues the card can continue to bribe all of us into using their product.
I'll pay cash in restaurants and for local services whenever I can.
Exactly. People who've paid off their debt have noticed that their credit score went down.
Let me state this as simply as I can:
1. Someone is paying for it
2. Businesses dont stay in business by giving more than they earn.
3. Personally, I'd check ALL THE FINE PRINT, and card statements to make sure it isn't me.
I'm sure many of us have been burned by fine print. Read what I've posted. It was generic and urging people to make informed decisions. If putting all your bills on one card and then paying that card at the end of the month helps because one bill is due on the 24th and you don't get paid till the 30th, then you have a good reason. There are good reasons for using credit cards, you just have to make a knowledgeable decision.
When it comes to money, trust if you want, but always verify people are doing what they say they are doing.
As a (nearly) life-long player who has had a lot of instruments, including some that stretched me financially, taking a loan on a bass is pure stupidity. Paying with a CC is fine as long as you have the cash to pay off the CC, but anything else - even at 0% interest, is just plain foolish. If you can't pay for it, you don't need it.
Yes, there are exceptions in life such as a mortgage, maybe a vehicle (if you're not stupid about it), or a piece of equipment or software for a business, a double bass for an orchestral pro, etc., but for something as relatively inexpensive as a bass guitar, no.
Yes, there are exceptions in life such as a mortgage, maybe a vehicle (if you're not stupid about it), or a piece of equipment or software for a business, a double bass for an orchestral pro, etc., but for something as relatively inexpensive as a bass guitar, no.
buldog5151bass
Kibble, milkbones, and P Basses. And redheads.
Unless it is a used object, credit card. But I always pay the full balance each month. If I can't afford it, I can't afford it.
Uhh, with today's inflation, it's pretty dumb not to take advantage of the no-interest 24, 36 or 48 month payment options you can get from the big music stores. Money will be worth less at the end of the period. You might feel like a smart buyer by paying it off all at once, but it is actually giving away money.
If this concept doesn't make sense, think of it this way.
Let's say your monthly payment on a no-interest payment plan is the same as the current cost of a gallon of milk (~$5).
Let's say due to inflation, the cost of a gallon of milk doubles over the 4 year period. That means the last payment you make only has the value of half a gallon of milk.
So if you pay it now, you are paying the cost of 48 gallons of milk. If you pay it off over 48 months, it will be the equivalent to 36 gallons of milk (after doing the math).
Inflation won't be that high of course, but the concept applies. Those no-interest payoff plans are free money to you.
The Sweetwater one is done by the Synchrony bank. Their account website is extremely easy to use. They do auto-pay but I log in every month and schedule a payment ahead of the auto-pay, just to make sure there are no issues with my bank connection. Easy to use and will save you a ton of $. Guitar Center, Sam Ash etc. all use the same bank system I think.
I try to avoid the 6-month options since they are trickier to deal with. They auto-payments don't add up to the balance, so you have to make an additional payment, and those do have outrageously high interest that will hit you if you screw up. I have done them a couple times (for Fender it is the only option except maybe once a year on a special promotion), but I don't like the interest penalty hanging over my head, so I try to avoid them.
Read the fine print. The no-interest plans really are a great way to buy. Add discounts from your sales person, sales or coupons, and you are way ahead of just dropping it in your cart and check out with credit card.
If this concept doesn't make sense, think of it this way.
Let's say your monthly payment on a no-interest payment plan is the same as the current cost of a gallon of milk (~$5).
Let's say due to inflation, the cost of a gallon of milk doubles over the 4 year period. That means the last payment you make only has the value of half a gallon of milk.
So if you pay it now, you are paying the cost of 48 gallons of milk. If you pay it off over 48 months, it will be the equivalent to 36 gallons of milk (after doing the math).
Inflation won't be that high of course, but the concept applies. Those no-interest payoff plans are free money to you.
The Sweetwater one is done by the Synchrony bank. Their account website is extremely easy to use. They do auto-pay but I log in every month and schedule a payment ahead of the auto-pay, just to make sure there are no issues with my bank connection. Easy to use and will save you a ton of $. Guitar Center, Sam Ash etc. all use the same bank system I think.
I try to avoid the 6-month options since they are trickier to deal with. They auto-payments don't add up to the balance, so you have to make an additional payment, and those do have outrageously high interest that will hit you if you screw up. I have done them a couple times (for Fender it is the only option except maybe once a year on a special promotion), but I don't like the interest penalty hanging over my head, so I try to avoid them.
Read the fine print. The no-interest plans really are a great way to buy. Add discounts from your sales person, sales or coupons, and you are way ahead of just dropping it in your cart and check out with credit card.
^^^
I'd much rather own my things outright and not be beholden to anyone than save a few gallons of milk over the next 3-4 years. Until it's paid in full, it doesn't belong to you.
I'd much rather own my things outright and not be beholden to anyone than save a few gallons of milk over the next 3-4 years. Until it's paid in full, it doesn't belong to you.
- Sep 4, 2010
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- Endorsing: Martin Keith Guitars
As an immigrant to the US starting from 0 I went through the whole gamut in the past 20 years.
- getting first credit cards (because someone had told me i needed to get these so i could build this thing called 'creditscore', which while it seemed superimportant, no idea at the time what that was). 1st one: Macy's card, aka the worst interest rate store card.
- After obtaining 1st gainful employment and a little later, my green card, got a few more credit cards and lo-and-behold, after several attempts, a new American milestone: 0% card from Sweetwater! Felt like a reward at the time lol. Went a little overboard with that one and a few more so enter phase 3:
- Went on a 'build credit score' rampage creating a house-of-creditcards by distributing debt over a number of new 0%-APR-for-xx months accounts. Was able to bring down debt, while at least no interest. Enter massive spreadsheet keeping track of it all.
- Currently approaching debt-free status incl. '0% interest' store cards. Standard rule: any CC purchases paid off within a month, incl. 0% interest store cards.
- Targets for the year:
- Stop obsessing over minimal changes in credit scores with semi daily checks - as longs as its over ~740 (which I am by a country mile at this point), I'll get the best mortgages rates etc.
- Cancel a bunch to bring down the number of credit cards to a handful
It's not a matter of using credit, it's a matter of having credit. It's integrated in our system. Even a modern utility company requires 550-600 to agree to provide new service for you. They want paying customers same as any business. It also determines how quick you get service and how long they leave it on if you miss a payment/auto-pay malfunction etc. Or you can pay a large deposit and higher rates. And that model is systemic.
