credit card or apple instant loan?

Discussion in 'Buying Tips, Advice and Discussion (archive)' started by everythingdmb, Oct 28, 2003.

  1. everythingdmb macrumors newbie

    Oct 27, 2003
    In your experience, what would serve me better in the end? Paying for a mac with a Credit card or getting the apple instant loan?
  2. madru macrumors member

    Jun 11, 2003
    I go with instant loan if you can't get better interest rate with your bank. Also, if you pay back your instant loan within six months (approximately) you won't be charged any interest on your loan.
  3. Fahd macrumors regular

    Oct 26, 2003
    Apply for the loan anyway, without ordering and see what APR you get. Then place an order with your credit card or the loan depending on whichever option has the lower APR.

    I dont think thats true anymore! I believe that was a promotional offered by MBNA and Apple initially. I have the MBNA/Apple loan, got it last week and my agreement does not have the above promotion of 6 months same as cash offer.
  4. Sweetfeld28 macrumors 65816


    Feb 10, 2003
    Buckeye Country, O-H
    a friend of mine, used the instant loan. he told me, that he is paying $15 a month intrest only payments for the first year. So, i would pay the minimum payment for the first year then turn around and sell it.
  5. Fahd macrumors regular

    Oct 26, 2003
    I dont know if you/your friend misunderstood that. I mistook that the first time I read it. At first when I saw "interest only payments for the first 12 months" I thought they charged interest on the loan amount only for the first 12 months, but that is not the case. It does not mean that you have to pay interest only for the first 12 months. Interest starts accumulating from the date of usage of the loan until the day you pay off the full balance. Anyways, how it works is that you pay minimum $15/month for the first 12 months and after that you have to pay $15/month or 10% (might be different for you) of the total new balance every month, whichever is higher. Now if you've been paying only $15/month then the 10% of your balance is most likely going to be much higher than $15 depending on your APR. So after the first 12 months your minimum monthly payment is going to increase. The only advantage of the statement "interest only payments for the first 12 months" is that you have low minimum monthly payments to make for the first 12 months.

    For a complete understanding of the loan terms you have to read the complete loan agreement, which is what I did.

    I do not mean to put you/your friend down by my above statements, just thought I'd clarify the payment terms of the loan as I misunderstood it at first.
  6. BrandonRP0123 macrumors regular

    Jul 28, 2003
    San Francisco, CA
    The ``no interest until XXXX'' is only good if the balance is paid in full by that time.

    I financed my Power Mac G4 533Mhz in april of 2001 (2800 total). After the introductory period (no payments or interest until XXXX) the interest rate skyrocketed to 23.99% (and a few months later they ``made an adjustment to the terms and conditions'' that pumped it up to 26.99 percent. I paid it off soon after - but the minimum payment was $96/month as it was and on the outstanding balance (which was about 2000 at the time) they added on about $45/month in finance charges to the account.

    The account was opened, of course, on excellent credit.

    This is all through MBNA - not sure if this is who Apple is using at this time - but they were when I financed.

    Just my two cents. Your mileage may vary.
  7. Fahd macrumors regular

    Oct 26, 2003
    Yes, apple is still using MBNA. I got my loan last week. My APR is at 26.66% :( I hope to pay off the full balance in 6 months though.

    BTW, they do not offer any "no interest until xxxx" or "xx months same as cash offer" anymore.
  8. Noc macrumors newbie

    Jul 17, 2002
    26.6%? Ouch.

    Get a good credit card. 9.99% (or less) is pretty easy to find these days. If your current credit card rate is higher than that call your credit card company and tell them that you can get a lower rate elsewhere - they will lower your rate.

    Also, many credit cards have 0% or low interest introductory financing for the first year after signing up.

    Just some tips from an expert at being in debt. ;)
  9. Fahd macrumors regular

    Oct 26, 2003
    Re: 26.6%? Ouch.

    Is it as easy as you make it sound? I thought most credit card companies determine APR based on credit history by adding to the prime rate.

Share This Page