(Topic ID: 116060)

Question about paying for private sale pin with credit card


By Pins4me

5 years ago



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  • 33 posts
  • 28 Pinsiders participating
  • Latest reply 5 years ago by HEEELEY
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    #1 5 years ago

    This is a little off topic, but the purchase is of a pinball machine.
    I just got a credit card. Not enough to buy a LE etc pin, but a nice HUO modern pin.
    No matter if I pay for my machine by charge or cash, my interest rate is the same, so I was going to pull some cash out of the card at a bank.
    So, my questions are these:
    I want to buy a $4k machine from a private sale as mention in another thread. Once I get my tax return back, I was going to dump $2k right towards paying the card leaving 2k outstanding. I believe the monthly payment of $4k is like $140 a month which is fine for a month or so until the return comes in, but my question is, once I pay $2k off, will my payments still stay about $140 a month? Will it go lower due to the lower balance?
    The second part of my question is, do banks give you like $4k cash? Is that too much to withdrawn? My available cash amount on the card is right about this number. I would normally get a cashiers check or money order, but like most of us, cash is king and that's what the seller wants.

    16
    #2 5 years ago

    Don't do it... Save till you have the cash.

    #3 5 years ago

    /\/\/\/\ +1

    #4 5 years ago

    Have patience. Charging a pinball machine is a horribly stupid idea.

    #5 5 years ago

    Why pay interest on something that is a hobby? Is it worth to possibly end up paying 6-8k for a 4k machine? Doesn't make sense to me. If you can't pay cash then you don't need it. If you are getting 2k back from taxes buy a real nice system 11 game when the check comes in

    #6 5 years ago

    Yep, cash on the glass. Your cash, not the banks. If you have 2k cash, get a 2k machine. If you have $600, you can afford a $600 machine. Never pay for toys with credit.

    And people will say that you can handle your finances any way you want. But buying toys on credit is just stupid. There are plenty of games that are less expensive. The only reason to buy a game on a card are the consumer protections it gives you. But be darn sure you have the cash to pay it right off. Otherwise you are just wasting money.

    And seeing I'm giving financial advice, pay extra on your mortgage once you get one. Every dollar you pay extra saves a ton of interest over the years.

    #7 5 years ago

    Pretty sure this is a pinball forum and not a banking forum....

    And you want to buy a pinball machine with a credit card.....only in 'Murica!

    #8 5 years ago

    Exactly what DaveH said. Don't use your credit card.

    #9 5 years ago

    Your interest rate may be the same for a cash advance vs a purchase.. but they'll certainly have fees for the cash advance. Read the fine print. That's some pricey cash to borrow from!

    #10 5 years ago

    I think you're asking if the minimum payment will change when your balance goes down. That depends on your terms, but normally the minimum payment is a fixed amount or a percentage of the balance, whichever is higher, you need to read your cardholders agreement to see what your terms are.

    #11 5 years ago

    Thank all for some very sound advice. Your right. I never really stepped back and looked at it as you folks are mentioning.
    My hope was to only carry that last $2000 over until the latest of next years tax return, but between the cash advance fees and interest rates, that $2k would balloon to like $3900 in a year.

    #12 5 years ago

    If you want a $4000 game wait until you have $4000 saved up.

    If you have $1000 or $2000 available buy a $1000 or $2000 machine and be in the game and continue to save money. You can always sell the first game and put it towards the expensive game when you have the rest of the money.

    #13 5 years ago
    Quoted from Pins4me:

    between the cash advance fees and interest rates, that $2k would balloon to like $3900 in a year.

    Is using credit that crazy overseas? If I used my credit card here in Germany to get 4000$ the monthly rate on the whole sum would be less than 50$ per month or 560$ after the first year (14% interest p.a.).
    That said interest on credit cards here is way higher than just overdraft your bank account (depending what your limit on overdraft is), which is usually around 10% p.a.

    Having 2000$ blow up to alomost twice that in a year is crazy, if that money came from a reputable bank and not some weird money lender.

    That said: Only use money you have for hobbies and such. Only spend money that is not yours in emergency situations.

    #14 5 years ago

    Listen to what people here are saying. It is good advice. Successful people don't carry a balance on credit cards.

    Some people believe that you have to borrow money on a credit card to in order to build credit. That is not true. The card companies want you to believe that as they make huge profits on customers borrowing and payment failures through late penalties.

    10 years ago I had lousy credit. It was a carry over from business failure. I lost all my credit cards but was able to move on and recover using cash and debit cards from my checking account.

    A few years later, I was able to get a credit card again which I have since used every month for business purchases. But I have also paid it off online every few days after making the purchases. I never carry a balance from month to month. That buys me lots of miles that I use for family vacations and has improved my credit line. Some people believe that will not improve your credit score. Don't ever believe that.

    I applied for a mortgage last month and they reported my scores. My credit is now back over 800.

    #15 5 years ago

    Would I do this? No, cash only. However, if you somehow have a 0% interest and know for sure you can pay it off before incurred interest...I'd say it is fine.

    #16 5 years ago

    I'd wager most people here indirectly borrow to buy, just at more reasonable interest rates.

    If you owe for anything ( house, car, etc) and pay cash for a pin, you're borrowing to buy. Not that there is anything wrong with that.

    A credit card cash advance, such that a $140 a month payment is not sustainable is not a good idea, but not devastating.

    #17 5 years ago
    Quoted from jfesler:

    Your interest rate may be the same for a cash advance vs a purchase.. but they'll certainly have fees for the cash advance. Read the fine print. That's some pricey cash to borrow from!

    Not sure how it works there, but over here (aust), cash advance interest rates are much higher than the purchase rates. so i would also advise against it... it would end up being quite an expensive pin ...
    by the way, whats the machine your wanting to buy for 4k? if you dont mind me asking.

    #18 5 years ago

    What everyone else says plus: be patient and wait for a good deal on a desirable game that needs some lovin then fix it, play it, flip it. Rinse and repeat a few times and you'll have that dream game before you know it!

    #19 5 years ago
    Quoted from Nycon:

    Is using credit that crazy overseas? If I used my credit card here in Germany to get 4000$ the monthly rate on the whole sum would be less than 50$ per month or 560$ after the first year (14% interest p.a.).

    Yes. In North America, you might see 14% as a special "introductory" rate on a credit card, but after 30-60 days, it will jump to about 30%. Banks in North America aren't quite as reputable as in Europe.

    #20 5 years ago

    buy a $2000 machine, shop it good and sell it for $2700.
    buy a $2700 machine, shop it good and sell it for $3400.
    buy a $3400 machine, shop it good and sell it for $4000.
    you now have a $4000 machine for $2000 and a little elbow grease.
    put the $2000 you just saved into a roth ira and when you retire that $2k will be worth $20k.

    #21 5 years ago

    I think everyone else has you on track by advising you to stay away from using your credit card unless it's absolutely necessary. For example, if your furnace dies in the middle of winter and you don't have $10,000 to buy a new one. I'll also use my card for online purchases, but I pay it off every month. I would use my debit card, but it's easier to deal with a compromised credit card than waiting for the bank to refund your actual cash if you use a debit card.

    I got myself into a lot of trouble when I was in college with credit cards. Nothing like being young and finding out you can buy anything you want and only pay pennies on the dollar.....forever.

    I know everyone likes instant gratification, but the smartest thing you can do is take that $140/month you estimated for your payment and stick it in an envelope until you have enough to buy the machine you want. Or just settle for a $2,000 machine when you get your tax return. I just bought my first machine (DM) for $2,200 and it's in wonderful condition. Full LED swap and other than a little damage to the decals on the side of the back box, it's in awesome shape.

    You can get some nice games for the +/-$2000 mark. I know everyone wants a collector's quality TZ or something, but that can come later.

    #22 5 years ago

    First time in the history of pinball forums...unanimous responses to a poll.

    We can't even all agree that ISIS is bad, but when it comes to money, all aboard!

    #23 5 years ago
    Quoted from Pins4me:

    Thank all for some very sound advice. Your right. I never really stepped back and looked at it as you folks are mentioning.
    My hope was to only carry that last $2000 over until the latest of next years tax return, but between the cash advance fees and interest rates, that $2k would balloon to like $3900 in a year.

    I am a CPA. Please do not do this. Unless you had to get the game right the second and you could pay off the card before your next statement, do not do this. It's good to have credit activity, but not balances sitting out there forever. Even if you have a low interest rate, you are still going to pay a lot more for a game. Don't do it. To put it into perspective, use this:

    http://www.barnesdennig.com/publications/financial-calculators.html

    Under personal finance, choose credit card payoff. You can play around with that calculator and it will tell you how long it will take to pay off your card and the amount of interest you will end up paying.

    Not worth it at all. Pay for a game you can afford NOW. Not one you can pay off in two years.

    #24 5 years ago

    cash is king

    #25 5 years ago

    If you don't have the cash, don't buy it, especially since this is a luxury purchase.

    First, build up an emergency fund, which should be about 3 months worth of living expenses in case you get laid off, have a car accident, need expensive car repairs, land in the hospital for an unexpected accident or health issue, or any number of unexpected things. Being unprepared and without a financial cushion can ruin a person's finances for years.

    Then, start saving up for whatever it is that you want to purchase. And while you are saving up, you are earning interest (as little as it is these days), rather than paying it. Online banks tend to pay the highest amount of interest, since they don't have hundreds of physical locations to maintain and staff.

    #26 5 years ago
    Quoted from ForceFlow:

    First, build up an emergency fund, which should be about 3 months worth of living expenses in case you get laid off, have a car accident, need expensive car repairs,

    ^^^^^
    This.

    But, I'd bump that to 1 year of living expenses.

    Once you have one year of reserves put away, THEN buy some silly toys and re-live your childhood.

    #27 5 years ago
    Quoted from TVP:

    buy a $2000 machine, shop it good and sell it for $2700.
    buy a $2700 machine, shop it good and sell it for $3400.
    buy a $3400 machine, shop it good and sell it for $4000.
    you now have a $4000 machine for $2000 and a little elbow grease.
    put the $2000 you just saved into a roth ira and when you retire that $2k will be worth $20k.

    I don't know who supplies you with parts for $0, shipped for free, but I'd love a link.

    #28 5 years ago
    Quoted from vid1900:

    ^^^^^
    This.
    But, I'd bump that to 1 year of living expenses.
    Once you have one year of reserves put away, THEN buy some silly toys and re-live your childhood.

    More than 3 months is certainly better, and you will be in a much better position to take a financial hit. I'd say 6 months *minimum* if you own your own home--like vid says, 1 year is better. You never know when you would suddenly need to replace a furnace, septic system, leaky roof, or any number of other repairs.

    Quoted from EvanDickson:

    I don't know who supplies you with parts for $0, shipped for free, but I'd love a link.

    Yeah, I'd be lucky to break even on my machines just in the cost of parts alone. That's not including all the time, effort, supplies, and tools.

    #29 5 years ago

    Get your tax return, use that to buy something close to that price, then trade up with next years return.

    Or, if your young, max out that card and learn the hard way like the rest of did. At least you will be playing the game you want!

    #30 5 years ago
    Quoted from Boondocker:

    Get your tax return, use that to buy something close to that price, then trade up with next years return.
    Or, if your young, max out that card and learn the hard way like the rest of did. At least you will be playing the game you want!

    If you do your taxes right in the first place, you really shouldn't be getting a huge return, unless you do some tax deductible stuff after the fact, such as putting in some additional money into retirement. Some people have additional money taken out of their paychecks intentionally just so they have a big windfall come tax time, but all you're really doing in that situation is just giving the government an interest-free loan every year. If you keep track of your spending, you really don't need to do this.

    #31 5 years ago

    I never use my credit cards for luxury items. The only thing I have ever financed in my life has been my house. I only use my credit cards to pay my monthly bills for internet, utilities, etc, and the only reason I do is to be sure the bills are correct before I pay them. I pay off my credit cards every month once I verify they are correct.

    With that being said, cash (and patience) are always, ALWAYS key. For example, I have always wanted an AFM, but I have never wanted to shell out the $6k+ for one. Then I stumbled upon a lot of 4 HUO machines for $10k, a TSPP, TOM, BDK, and SP. Took the TSPP and sold it for $4000 since I already had one. Kept the TOM and SP. Turns out the local op wanted a BDK for the route and was willing to trade a routed but working AFM for it. That makes an AFM for $2000. Winner winner chicken dinner.

    Patience is a virtue, cash is king, and most of all, NEVER spend more than you can afford. You'll pinball yourself out of your home if you aren't careful. Trade/sell your way up like I did.

    #32 5 years ago
    Quoted from ForceFlow:

    If you do your taxes right in the first place, you really shouldn't be getting a huge return, unless you do some tax deductible stuff after the fact, such as putting in some additional money into retirement. Some people have additional money taken out of their paychecks intentionally just so they have a big windfall come tax time, but all you're really doing in that situation is just giving the government an interest-free loan every year. If you keep track of your spending, you really don't need to do this.

    This times a million. That is money you could be investing.

    #33 5 years ago

    Another option would be to use a peer-to-peer lending site like Prosper. These are fixed rate loans that are crowd funded on a 3 or 5 year payoff schedule. The interest rates are usually a lot lower than a credit card. Rates are based on a combination of criteria. The amount you are borrowing, your credit score, and your income all go into calculating the rate. There isn't a prepayment penalty, so you could pay it off early when you get your tax refund, win second prize in a beauty contest, etc. I'm not saying it's the wisest financial move, but the lower/fixed rate does make it a little more conservative than putting it on plastic. I've never borrowed from Prosper, but I've been a lender on there for almost a decade.

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