Buy on Credit now or Wait and Save?

Discussion in 'Buying Tips and Advice' started by blink56k, Jun 24, 2006.

  1. blink56k macrumors member

    blink56k

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    #1
    Note to mods: Delete this thread if it's a duplicate. (Browser submit problems)

    It seems all I do on these threads is ask for Macbook advice so I apologize beforehand.

    Recently my credit limit jumped from 1,500 to 2,300. While I am well conscious that this is not free cash, it still tempts me into contemplating the possibility of having one of those Macbook babies....lol.

    Anyway, since I am employed (at the college I attend) I figured I could buy the Macbook now and pay it off by Christmas. On the other hand, I could instead save myself interest and save money -until- Christmas to get one.

    The reasons I would want to get one now (despite being horrified by many of the issues that abound on the web, especially the staining...ew) is because I want to take advantage of the iPod/printer/MS Office offer before it ends. I also want to show it off to my suite mates :D and flip the bird at my self-declared Windows-centric campus (I don't hate Windows, just my college's IT department among other things).

    I don't want to seem like a spoiled kid and be like hey guess what, I got a new laptop for Christmas because my year old Thinkpad wasn't good enough...har har. I would rather own it by the start of the year and pretend I had it all along.

    The other problem with getting it now would also be my parents' objection. My Thinkpad (which I got for free from my school, as well as MS Office) is perfectly functional for what I need it for, so they would be right in saying I would be satisfying a want rather than a need and wasting valuable money in the process.

    I thought of selling the Thinkpad to my dad but it would really be abusive of me since my parents pay the remainder of college expenses that aren't covered by scholarships and other financial aid. Ebay isn't an option because my account is too new to have the credibility needed to sell a fairly high ticket item like a laptop.

    However, if I do end up waiting until Christmas, do you think I might be better off buying off Amazon because of the rebate and the 3rd party warranty available? I'm not too fond of AppleCare and would rather have a 3rd party warranty that covers stuff like accidental damage (especially since I'll be living in a suite with 5 other people, with even more people coming in and out everyday).

    Anyway, peace out and sorry this was long.

    --Ray :)
     
  2. dops7107 macrumors 6502a

    dops7107

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    #2
    I would say that, if you want it and the deal (Office/iPod etc) looks like it's about to end, then go for it. The extra goodies may outweigh the cost of buying on credit. However, look to see if you can get a better rate for your money elsewhere. I don't know how it works in the states but a loan from a bank is almost always cheaper than credit cards that charge 16%. Credit cards are a bad way to borrow money for large things. If you could get an unsecured loan for $2000 from the bank, you would save money in the long run. On the other hand, if you think you may be able to pay off your credit card debt quicker than a bank loan with a specific repayment plan, it may be cheaper one way than the other. You may have to do some maths :p
     
  3. MACDRIVE macrumors 68000

    MACDRIVE

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    #3
    Everybody is talking about revision "B" and how they are likely to be problem free. That would be your reason for waiting. On your other question of who to buy from: In leu of all the problems these MacBooks have had, I would say you're better off buying as directly from Apple as possible. The people on MR who have bought their computers from the Apple store, have had the best success in getting replacements. :cool:
     
  4. wako macrumors 65816

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    Jun 6, 2005
    #4
    Just an idea.....


    Go apply for a credit card that gives you 3months or 6months no interest financing and buy it like that. That way you can buy the thing without worrying about interest. No of course you just have to hope your credit is enough to buy the computer. Or just do two seperate transactions where you charge how much you can pay off now on the current card, and charge the rest of the new card thathas no interest.

    Although make sure you have enough to pay the payment minimum each month
     
  5. dops7107 macrumors 6502a

    dops7107

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    #5
    Duh... :rolleyes: I'd forgotten about interest free offers on credit cards. I found one that did 12 months!
     
  6. Acehigh macrumors 6502

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    Mar 5, 2006
    #6
    Doesnt Apple offer 6 monthes interest free... If so I would buy it with the Ipod Deal and printer... But call Apple first since both rebates say orginal upc from the computer. They might of changed it notice it when it first came out.

    What do you plan on doing with the thinkpad? If you plan to sell it you probably get alot more for it now then in 6 monthes.
     
  7. sushi Moderator emeritus

    sushi

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    #7
    Enjoy the Thinkpad -- it does what you need to do. As you say it is functional.

    Then save your money for a nice MB down the road.
     
  8. celebrian23 macrumors 65816

    celebrian23

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    #8
    Agreed. You are too young to be messing with something as important as credit. Calculate how much the interest is, and see how much you'll save that way. Just wait and save. You don't need a new laptop, and waiting will be well worth it in this case
     
  9. ChrisRC macrumors newbie

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    Chicago
    #9
    How about sellling the Thinkpad on your local Craigslist? Use all the cash from the sale on the Macbook and put the remainder on an interest free credit card. Not the best financial move, but you only live once, right? Go for it now. :p
     
  10. Timepass macrumors 65816

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    #10
    No do not buy it with creited.

    First rule of buying things is never buy anything on creited. You only buy it if you can pay for it all now. (car housing and things like that are the expetion to the rule).

    What you are saying is exactly how people in in credit card dept and it get out of hand. They think oh I can pay it of down the road. This include the 6month no intersted. Because at 6 months you are charge 6 months worth ot intersted on what you didnt pay off. Never a good idea.

    Only buy it now if you can pay for it now. And then you can take the 6 months beforey ou turn in the cash since it can can intersted sitting in you bank.

    Useing credit to buy something you can not pay for now it a way to get in trouble. The only time you should ever put something on credit like that is if it emergcy other wise just no.
     
  11. wako macrumors 65816

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    #11
    Yeah... if you cant pay it off within the no interest promotion of the credit card, it is actually best you not even buy it at all.
     
  12. fenixx macrumors regular

    fenixx

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    Mar 23, 2006
    #12
    While I don't support overspending on credit cards I will say this; my American Express doubles the warranty on anything I buy, (AppleCare turns into 2 years for free)... so it might be wise to purchase the Macbook on a credit card ONLY when you have saved up the money to pay it all off in the same statement.

    :shrug:
     
  13. blink56k thread starter macrumors member

    blink56k

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    #13
    Thanks for the advice guys.

    I will most likely wait until Christmas unless by some miracle I get this ThinkPad sold for a good price (or sell it later and use the extra money to pimp the Macbook up!).

    I may also just end up buying from Amazon to save money (ie., the rebate) and take advantage of third party insurance by then.

    Meanwhile I have my fingers crossed hoping I get that job promotion I applied for!
     
  14. coffey7 macrumors 6502a

    coffey7

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    #14
    at least try to pay for half cash then card the rest.Or loan at bank.Better interest rate.
     
  15. Monkaaay macrumors 6502

    Monkaaay

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    #15
    Honestly, it might be a good idea to buy on a credit card if you plan to pay it off within the next 6-8 months. As a college student you probably don't have any credit yet, which will hurt you when it comes to making that major purchase; a home. So, one great way to build credit is to make a purchase like this and pay it each month like you should. Over 6-8 months you won't pay that much in interest on a $2k purchase, and the credit you'll build would be worth it anyway.
     
  16. Timepass macrumors 65816

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    #16

    credit card are consider one of the worse way to build credit and really dont build it much at all. It is not worth the lost on it. A much better way of building credit is how I building mine. Rent a place, Get a cell phone, pay monthly bills like power and stuff. That build you credit a lot faster that a credit card will.

    Like I said earily never buy anythign on credit unless you can pay it off now.

    Yeah I have a credit card in my name. I use it because it is convent to charge stuff to it. But that being said when ever I charging something to it I know I have the have the money to pay it off right then. Just I pay it at the end of the month. It just a convented way of putting a lot of purchus on to one location.

    The rules is unless you have the money to pay for it now dont ever buy anything on credit. Credit cards are a nice way to just get everythign in one location to pay. Only time something should be put on credit that you can pay then and now is an emgery stuff. Like death in family or something big and you need to fly there and you dont have the money. Charging that stuff is ok because you will find the money later. But for something like a computer NO.
     
  17. Monkaaay macrumors 6502

    Monkaaay

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    #17
    Renting a place, yes, the most efficient use of money. :eek:

    Have any proof that a credit card doesn't help your credit?
     
  18. Macky-Mac macrumors 68030

    Macky-Mac

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    #18


    you say your parents would be right? well, listen to your parents then
     
  19. Timepass macrumors 65816

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    #19
    did say it doesnt help build you credit. I said it was one of the WORSE ways to build your credit and most experts advise against it because it is a pitfall trap in getting in to debt and destroying you credit rating.

    It doest really help build it that much and the risk for it are not worth it. It should never be consider to do for it. Get a car loan if you want to build credit up.

    But never use a credit card to do it. I am a college student rigth now. Yeah my parents are helping build my credit up by being my money backers. Yeah the rent is in my name but the money for it is paid all by my parents. They just give me a bugget to live on and give me the money to pay for it. Yeah I have a credit card but my parents cover it but all the stuff charge to it is cost of living stuff

    Off topic but you know food cost a lot of money. I never relieze how much I really ate. I spend around 40-50 bucks a week on food.
     
  20. sushi Moderator emeritus

    sushi

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    #20
    Be lucky you don't live overseas. It is very easy to exceed that amount.

    On the issue of credit cards. They can be used to establish credit. If used responsibly they are wonderful. If used otherwise they can kill you with finance charges.

    I almost always purchase major items with my AMEX card, then pay it off at the end of the month.
     
  21. Monkaaay macrumors 6502

    Monkaaay

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    #21
    Have you ever purchased a home? The loan officer actually will tell you to carry a balance on your card when filing the application. Not 80% of your limit, but a balance none the less. I think he said not to be over 50% of your limit on any card you carry. It may sound crazy but it's true. For a college student, there really aren't that many options for building credit and I actually built mine with a credit card and a cell phone bill. I never had big problems with the credit card and left college with an amazing credit score which got me a 5% interest rate on the house I just purchased at the age of 23. I've got friends who need a co-signer just to buy a car at 23/24.
     
  22. doctor pangloss macrumors regular

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    #22
    If you're a student on limited income don't use your credit for something you don't really need very badly. (if an unexpected expense comes along where will you be?)
    If you want an Ipod you can buy a refurbished 512mb shuffle for $49.00!
    You get the software to run it on your PC. The shuffle is so small you will find yourself using it all the time.
    Wait until the thinkpad konks out before getting a new puter.
    There will always be deals and promotions down the road. As well as slick new products.

    The shuffle ipod is one of the slickest things to hit the market ever. You gotta get one!
     
  23. blink56k thread starter macrumors member

    blink56k

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    #23
    I actually do own an iPod shuffle. I got it for free from one of those free iPod sites (non referral based!) after my iPod mini (which I worked so hard for!)"konked" out.

    Seriously though. I don't exactly need the latest and greatest. I would be ecstatic with a maximumly configured iBook G4.

    I was actually going to get an iBook before coming to college but my college was offering free Thinkpads to whomever chose to room in a triple (interesting experience :) ). Since my parents didn't really have the resources to get me a computer for college at that time, I jumped onto the bandwagon; so it wasn't like I made my parents "buy" me a Thinkpad and then throw it in their face a year later because I wanted another computer.

    I agree, it would be really dumb to buy on credit now since I really need the credit for my more high priority expenses like books (which I will try to get online this year instead of buying from the evil bookstore).

    Meanwhile, I registered for Small Dog's and Hinder's macbook sweepstakes because it doesn't hurt to dream, right? :rolleyes: :)
     
  24. sushi Moderator emeritus

    sushi

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    #24
    Now you're thinking! :)
     
  25. eRondeau macrumors 6502a

    eRondeau

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    #25
    Purchase Protection???

    When I bought my iBook G4 in late 2003 I put it on my Mastercard because by doing so, I got "Purchase Protection" at no extra charge. Meaning Mastercard automatically doubled Apple's 1-year warranty, plus if it was "lost or stolen" they would replace my computer for me. And laptops are "lost or stolen" more often than you might think. Luckily I haven't needed to make a claim on either front, however it was nice piece of mind.
     

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