financing a book

Discussion in 'Buying Tips, Advice and Discussion (archive)' started by IllTakeAnApple, Jul 17, 2005.

  1. IllTakeAnApple macrumors member

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    Jul 13, 2005
    Location:
    San Antonio, Tx
    #1
    So ive been driving my parents crazy with mac trivia and how they are better than pcs for the better part of 2 months now. My dad broke down yesterday and asked why i dont just finance one. So in my head im thinking how would i go about this and in the long run will it cost me a whole lot more if say i just pay for a good percentage of the laptop (50% +) and then finance the rest? Has anyone financed a computer through apple or any affliates of apple before? Im just dying to take bite of a new apple! Oh and by the way im just some punk kid that credit cards are just waiting to get their hands on or thats what they think ill be acting like when making purchases!
     
  2. Lacero macrumors 604

    Lacero

    Joined:
    Jan 20, 2005
    #2
    For some reason, financing and punk kid don't go together well. Maybe look into buying a used iBook instead of new.
     
  3. Mord macrumors G4

    Mord

    Joined:
    Aug 24, 2003
    Location:
    UK
    #3
    do the math, work out how much more it'll cost in the long run and decide if it's worth it, simple as.

    personally i would not as you dont know what **** will happen a few months from now and you need money for something but cant because of repayments, better to pay for something when you know you can afford it.
     
  4. Spanky Deluxe macrumors 601

    Spanky Deluxe

    Joined:
    Mar 17, 2005
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    London, UK
    #4
    Financing has always been a more risky option. If you're dead set on getting one then either get a used one or buy one through the educational store once you save up the money.
     
  5. MacDawg macrumors P6

    MacDawg

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    #5
    Starting out your young life in the hole is a bad idea.

    And from one who has financed 2 computers, it is a bad idea too, unless it is a quick payout (I did 90 days same as cash once). I had one on a credit card that ate me alive with interest until I put it on a fixed loan. It was a nightmare.

    One of the problems is that if you finance for too long, you are hot for a new computer before you have paid off the one you have :(

    If you do it, have a repayment plan in mind that will allow you to be free and clear as soon as possible.

    Woof, Woof - Dawg [​IMG]
     
  6. iSaint macrumors 603

    iSaint

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    May 26, 2004
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    South Mississippi y'all, near the water!
    #6
    Maybe your parents will play the financier (is that a word?) and work out a deal for you to get your iBook. Are you working now? How old are you? Steady income is good when wanting to pay someone back for something. Hopefully your parents won't be soft when wanting scheduled payments. They should expect payment as anyone would. DON'T get a credit card!
     
  7. Artful Dodger macrumors 68020

    Artful Dodger

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    May 28, 2004
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    In a false sense of reality...My Mind!
    #7
    Bad idea to get a loan or use credit for it unless you are making money from it such as photos or video work. Go and do some type of work that you like or don't mind doing i.e. landscape, working in a marina or car wash, something, anything :p You'll be better off as everyone has said.
     
  8. CanadaRAM macrumors G5

    CanadaRAM

    Joined:
    Oct 11, 2004
    Location:
    On the Left Coast - Victoria BC Canada
    #8
    First off, you have to be a certain age (19 in most places) before you can legally acquire credit. If you MUST finance a purchase, go to your local bank or credit union and get a loan (you will most likely need a cosigner with a credit history to take responsibility). You will get a lower interest rate.

    "Consumer" credit such as credit cards, finance companies and retailer purchase plans (which are just finance companies in disguise) are the absolute worst way to buy anything. The interest rates go from 18% to 29% -- this when the prime rate is about 2.5%. Do not put a purchase on a credit card unless you can absolutely pay it off in full before the interest free period expires.

    Also just say no to "No interest, No payment" offers that have an up front fee. A local electronics discounter advertised a $300.00 stereo for 6 months no interest no payments. The "registration fee" was $29.95. That made the effective interest rate over 19%.
     
  9. Tamer Brad macrumors regular

    Joined:
    May 13, 2005
    #9
    Don't forget that Amazon.com has a 12 months no interest plan, if that's your thing.
     
  10. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #10
    I think there is a decent agreement among many that buying your notebook on credit is not at all a good idea. However, as a punk kid you are probably thinking that you asked, but maybe you did not like the answer. As you look around these forums maybe it was evident that many people would stop at nothing to lay cash down on a machine such as the one you are eyeing. However, it is rather obvious that even the Mac world has their limits on what they feel is right and wrong.

    Here is my take. I don't carry a credit card--at all. If I cannot afford it with my annual wages then I probably can't afford it on credit. I have had credit cards, I charged the living daylights out of them and then as they were being paid off I learned that my $1000 TV turned into a $3000 TV. My $500 5-Disc Changer Surround Sound Stereo that I just had to have that day turned into a $1100 Stereo. I re-sold it for $200. Burned. I am not at all saying that people get into trouble with credit cards. However, live and let live. In other words, you're going to have to see for yourself how things will go.

    I find you to be a bit young based on the way that you put things to even be considering financing a computer. However, it is a good idea to start somewhere around 18 with at least one line of credit. For me it was a car. The fact is, if you have no credit it is just like having bad credit. Many people can argue that, but no one can really say that I am dead wrong. My advise is that yes, you should have a line of credit, but we're talking $500-$1000 and never let the balance reach past 50% of the high balance. When you finance a computer it shows up on your credit report as "max limit is high balance" which is a nice way of saying that you're maxed out. Because Apple is not going to give you $6000 because you asked for a $2000 computer. Your FICO which is your credit score and depended on more than even your SAT's in your adult life will drop slightly because you are "maxed out" and considered to be in debt. Your high credit limit should be 40-50% more than your current balances.

    While it may mean nothing to you now, let me tell you that I have seen both sides. A family member had nothing until he turned 18. He got a credit card (student visa) with a max limit of $500. He quickly spent $300 on some game console and games and then paid it off in 3 months. Later, he bought a car. It was only $4000 but he paid it off in 2 years. He was sent two other credit cards. One has a limit of $3000 one has a limit of $2000. He charged both up about $1000 each, paid it off in 5 months. Cut one in half (cancelled it) and left the one with the low-balance. He charges about $300 a month on it and then pays it off. He intentionally charges something that he could have paid cash for because it pays to have that activity on his report. His FICO is 757. That is great. The national average on FICO scores is hovering around 600. The difference for him is his interest rates on his home loans can be about 5.5-6% when the market is dishing out 8%. He has 0% interest on his car, financed over 3 years and making a payment less than I am and his car is twice as nice and three times as fast. Did I go wrong? Not really. I just didn't do what he did right away and in theory my student loans do a fair amount of damage when it comes to credit---unless it's a home loan.

    Long long post short and to answer your question. If you are prepared to pay this off in the next 12 months without fail I say go ahead. Yes, you will pay slightly more for it than we all (who did not finance it) did. However, once you do that, you should pick up a secured credit card with a $300-500 limit and play with that. Your next step would be to get an unsecured card and play with that. Never charge more than you have in the bank, never charge more than you make in a month, and never accept a rate over 18% and 18% is being highly liberal.

    Pardon the long post but it wouldn't be me if I didn't abuse my keyboard now and then!
     
  11. snkTab macrumors 6502a

    snkTab

    Joined:
    Nov 13, 2004
    Location:
    Cincinnati, OH
    #11
    Basic rule or credit, use it only when buying a house or car.

    That said credit can be a great tool. I use credit cards all the time. My credit card gives me cash back on purchases. I don't carry a balance, so effectively my credit card is giving me about 2.5% off all my purchases. But remember this is because I can afford to pay it back.

    Now, I have recently moved, got a new job, and now I have to afford all my living expenses, such as rent, food, utilities, etc, etc, where before it was split. I have a budget listing all my expenses and I know that I can afford a new laptop. However, I'm planning on financing it because there is still some uncertainty. I might need to buy another high priced item in a bit as well.

    Financing gives me freedom in that if something comes up, I have cash now that I can spend. I am willing to pay someone interest so that I can have this freedom.

    However in your case, your cash flow probally isnt that much. Financing would give you the opposite of freedom, it will give you slavery. You'll find that you are making money, but the money goes to the man.

    No matter how hard you think you won't go into debt, you will. I've been there and that's why I am so responsible now. Because it's a bad place and an easy place to get into.

    All that said, I'm sure you can pull up enough cash, borrow some from your parents, birthday money, sell plasma (actually don't do this), mow lawns, to afford a Mac Mini.
     
  12. snkTab macrumors 6502a

    snkTab

    Joined:
    Nov 13, 2004
    Location:
    Cincinnati, OH
    #12
    Also, I wanted to add that I agree with Jessica. You really have to worry about your credit score. I've had high balances at points, but never maxed. You never want to make a late payment, ever.

    I have a extremely high credit score because I've never paid a single balance late and I have very long historys with my credit companies. This is because I've paid of some credit cards, but didn't cancel them. 7 years of have a zero balance equals 7 years of never missing a payment ;). I have about a 30,000 limit, yet my balance is only 1k. That 1k is actually on a 0 interest card right now, which I refuse to pay back because I have that money making interest for me.

    I can get prime rate anywhere, which let me tell you, is very important. Actually, probally not now, like I said I moved and everyone and there mother credit checked me (which lowers your score).
     
  13. MacDawg macrumors P6

    MacDawg

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    #13
    Great advice though...

    Woof, Woof - Dawg [​IMG]
     
  14. IllTakeAnApple thread starter macrumors member

    Joined:
    Jul 13, 2005
    Location:
    San Antonio, Tx
    #14
    Thank you jessica for the long but much needed reality slap. To answer a few questions I just turned 20 and never have needed or longed for a credit card before. Ive got a loan for my car that I have continued to pay for the last year ( it is a 5 year loan with something like 3% interest) however it is under my parents names and i need to go back to the bank and eventually switch it over under mine since they said 6-12 months of work history can allow me to do so. I honestly think this will be the best way to build my credit. My parents were looking into getting me a credit card about a week ago but when they looked into it the interest was like 19%-20% and they dropped the idea. They felt that i should be able to spend with in my means and make little purchases that can easily be paid off before interest starts and/or builds up. As for the computer thing my dad wanted me to go to a computer store ie. Compusa and check out their financing program. I of course am one who always likes to have to pay with cash or at least have a good amount left in checking to keep from spending it. I would never run the whole purchase on credit unless i could get a good deal like no interest for so on and so on or i find that i can pay it back in say a month. My idea was to spend about $1000 or possible more since that is what i make if not more a month and then simple charge a few hundred to pay the balance. I have noticed that my friends have ruined their credit lines and my parents are going to being paying twice the price of our house once their mortgage is paid off. I just dont want to be paying like jessica said twice or even three times the amount of a laptop that will be updated within a year. I guess that is why my mom doesnt understand why i like to buy a lot of electronics because eventually like everything they will be outdated. I eventually will be getting my first mac and hopefully it will be the same month of the next updates!

    Thanks again everybody........Ive only been a member of MR for a few days and you all seem like guardians trying to watch out for each other or if anything siblings that have to bring each other down to earth sometimes.
     
  15. skubish macrumors 68030

    skubish

    Joined:
    Feb 2, 2005
    Location:
    Ann Arbor, Michigan
    #15

    Actually having no balance for 7 years does not equal 7 years of no late payments. It does nothing positive to your credit score and could lower it. If you have too much available credit (even if you are not using it) it can lower your score. Close accounts that you aren't using and won't use in the future.
     
  16. YS2003 macrumors 68020

    YS2003

    Joined:
    Dec 24, 2004
    Location:
    Finally I have arrived.....
    #16
    I think Apple's consumer loan is hanled by MBNA credit card. Apple used to have the 0% APR for 60 days, 90 days, or 6 months. It's like opening a credit card account with the grace period up to that free APR period (you still need to pay the minimum every month, though).

    If you did not pay up by the deadline, you will be hit with the high insterest, which is typical of the normal credit (like 10 to 20%?). I took that financing offer for my first 2 PBs (Ti and 15" PB), only because I already had the money in the bank. I can keep the money in my money market account earning interests during that free APR. To be safe, I paid up a month ahead of the deadline so that there is no screw up on the payment delivery to MBNA.

    For my third PB (12"), I just used my Discover Card (as I had chas in my bank account already). I ended up closing those 2 MBNA accounts because I had more than enough credit cards I can use. I wanted to wean out unnecessary credit cards (it's hard to monitor too many cards just in case there are fraudulent uses). Also too many credit cards will count against your credit score.

    I think if you don't have the money to pay in full for an electrinic or computer item, you should not buy it (it is likely you cannot afford it; sorry to be too blunt).

    I think the car loan is a different item altogether. It will help you build your credit history. I had an option to take $3000 rebate or 0% APR from GM. I took $3000 rebate and got a 5% APR loan (5 year) from Chase Bank. I paid it up in one year (wihtout any early payment penalty and reduced the total interest amount).
     
  17. MacDawg macrumors P6

    MacDawg

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    #17
    Apple no longer uses MBNA...

    Woof, Woof - Dawg [​IMG]
     
  18. Jschultz macrumors 6502a

    Jschultz

    Joined:
    Mar 14, 2005
    Location:
    Chicago, IL
    #18
    I partially financed my Powerbook. Had the cash for it, but decided to take advantage of 90 days same as cash deal Apple has. Money I would have used now sits in my money market account.

    Just another perspective, thats all :)
     
  19. dmw007 macrumors G4

    dmw007

    Joined:
    May 26, 2005
    Location:
    Working for MI-6
    #19
    No, now they use Direct Merchants Bank (why I know this is beyond me, I paid for my Power Mac G5 by check).
     
  20. dmw007 macrumors G4

    dmw007

    Joined:
    May 26, 2005
    Location:
    Working for MI-6
    #20
    Being a banker myself I can only say that banks love it when you do this kind of thing - the more $$$ you keep in your account(s) the more we have to loan out (to people buying "Books). ;)

    Looking for great savings/loan rates, then check out www.lebanonfcu.org
     
  21. Mood macrumors regular

    Mood

    Joined:
    Jun 29, 2005
    Location:
    NY
    #21
    Can't believe you guys tattle-taled on me to the cops. What happened to the brotherhood?


    Have fun with loans kid.

    P.S. sorry if i offended any grandpas that work at the apple store and make 10.35 an hour.
     
  22. finalcoolman macrumors 6502

    Joined:
    Apr 15, 2005
    #22
    Never finance a laptop. Know why? Say you drop it or it gets stolen. Do you know how much it will suck to have to keep paying it off even if you do not have it anymore? As for me, I am not only debt free on my one and only credit card, I always have a $500-$1000 balance on my credit card, a credit balance. So, when I buy something with my credit card, I know I do not have to pay anything cause I already paid for it. Also eliminates the possibilities of innocently forgetting to pay the bill. I do the same for my cell phone bill. I keep around a $50 credit on my cellular account so I never at any time actually owe them money. I'm 19 by the way.
     
  23. IllTakeAnApple thread starter macrumors member

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    Jul 13, 2005
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    San Antonio, Tx
    #23
    good point!

    sorry but this might be a stupid question but what is a money market account?
     
  24. D0ct0rteeth macrumors 65816

    D0ct0rteeth

    Joined:
    Mar 11, 2002
    Location:
    Franklin, TN
    #24
    Basically it is a checking acct.

    However it tends to have fees if you write checks (you can usually write some, but very few without incurring a fee) but, It pays a small interest rate of appreciation on your balance.

    I keep my "3-6 month emergency fund" in a MM Acct
     
  25. Billly macrumors newbie

    Joined:
    Jun 26, 2005
    #25
    i brought my powerbook on credit that apple offered me and it was on a juniper credit card. paid it off in two month. :)
     

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