Planning on making a $13.5k purchase. How should I go about putting it on credit?

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mrow
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Postby mrow » Mon Apr 14, 2014 7:29 pm

I have to ask... If you can't afford to pay your student loans (you mentioned they were deferred) why are you buying a $13,500 guitar?


guitarlifter
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Postby guitarlifter » Mon Apr 14, 2014 7:50 pm

mrow wrote:I have to ask... If you can't afford to pay your student loans (you mentioned they were deferred) why are you buying a $13,500 guitar?


They're deferred because I'm allowed to defer beginning to pay on them until 6 months after I graduate from grad school. Why would I start paying them before that when I'm not paying any more extra than if I paid later? This is common with just about any college or grad student who gets student loans that they can defer them until 6 months after they graduate.

As for the guitar, I'm getting that nice of a guitar because (1) I will never have to buy another guitar that expensive again because there is nothing to upgrade into and (2) what woman would allow me to buy a guitar that expensive if I were married to her? I gotta do this before any of that happens. :) I guess a third reason would be that it is a backburner dream to play music professionally, and if I have this guitar, I won't have to worry about getting a nicer instrument for studio recordings or performing live.
Whats's in the wallet: Discover It - $3,800 (5% rotating, ShopDiscover), Sallie Mae Rewards MC - $1,000 (5% on gas, groceries, and Amazon), Chase Freedom Visa - $1,200 (5% rotating + 10% extra w/ Chase Total Checking), PayPal Extras MC (1.66% on PayPal, 2.5% on Restaurants- $3,000, Bank of America Cash Rewards Visa Signature - $5,000 (Signature benefits), PNC CashBuilder Visa - $1,000 (Don't use), Fidelity Investment Rewards Amex - $5,000 (2% on everything)

. . . and some store credit/charge cards.

Future cards:

-US Bank Cash+ (for the 5% categories)
-1-2 0% APR cards for some big purchases I'll be making within the year

thom02099
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Postby thom02099 » Mon Apr 14, 2014 7:54 pm

I'm curious...if you've known that you have this time situation that is...variable...why not put the money aside, in a money market account or some account to save up for the purchase? You still have months to go until you have to make a final payment. You also said you may be doubling your income. Again, it begs the question, why not save up for this rather than relying on a plan with credit cards that may or may not work?

From your description, it sounds like you paid some money up front, right? And you're able to make some partial payments? Why not just do that? Put a grand or 2 on one of your higher limit cards and then pay it off; repeat the process, rinse, comb and style!

Frankly, I don't think you're in a position to be applying for more credit, and it's doubtful that you'd get the limits you're looking for. The one exception to that would be the BofA Cash Rewards card. BofA can be generous so trying for a CLI to $10K would be a reasonable approach. They will counter with a return offer if they are willing to accept a CLI, but not for the full amount. That could give you more leeway. Also perhaps try to get a CLI from Discover. With CLI be willing to take some inquiry hits. They shouldn't matter nor should your FICO score matter unless you're going to be applying for new credit. Forget that idea and go for the CLI. Or save up the money!
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EQ = 846 EX=828 TU = 836 as of 02/2016

guitarlifter
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Postby guitarlifter » Mon Apr 14, 2014 9:50 pm

thom02099 wrote:I'm curious...if you've known that you have this time situation that is...variable...why not put the money aside, in a money market account or some account to save up for the purchase? You still have months to go until you have to make a final payment. You also said you may be doubling your income. Again, it begs the question, why not save up for this rather than relying on a plan with credit cards that may or may not work?

From your description, it sounds like you paid some money up front, right? And you're able to make some partial payments? Why not just do that? Put a grand or 2 on one of your higher limit cards and then pay it off; repeat the process, rinse, comb and style!

Frankly, I don't think you're in a position to be applying for more credit, and it's doubtful that you'd get the limits you're looking for. The one exception to that would be the BofA Cash Rewards card. BofA can be generous so trying for a CLI to $10K would be a reasonable approach. They will counter with a return offer if they are willing to accept a CLI, but not for the full amount. That could give you more leeway. Also perhaps try to get a CLI from Discover. With CLI be willing to take some inquiry hits. They shouldn't matter nor should your FICO score matter unless you're going to be applying for new credit. Forget that idea and go for the CLI. Or save up the money!


As I said earlier in the thread, the use of credit cards is my 2nd option after paying off as much as possible out of pocket. I'm not specifically trying to go with credit cards initially as my primary source of payment. Any amount I put on credit cards will be after I pay as much out of pocket as I can. If possible, I'd just save up the rest of the money required, then when the time comes, pay off the amount with my rewards credit cards then just pay those off before the end of the month so that I end up never having a running balance.

If I end up getting that promotion, then I could very well either have the full amount ready by the time the guitar is done being built or, at worst, pay off the amount within a few months. Even without the promotion, I calculate I'll still have the money to pay off the guitar if I just pay it off over the course of 12 months after I purchase the guitar. It's just a matter of getting one or more 0% APR cards.

Btw, the guy who is building my guitar told me to stop making payments and to just wait to make one lump sum payment when the payment is due, so making small payments up until the final payment is due is out of the question. I'm sure he'd accept it if I told him that's what I want to do, but I don't see why I would need to do that over just saving it up and holding onto it.

The idea of putting this purchase on my current cards is not a good idea, IMO, due to the lack of a 0% APR. The FICO hits from apps will be negligible in the long run. You might be right in that I won't get approved for any more credit, but I've had very few rejections thus far, and I do have pretty good credit right now that will only be better around October, 2014 (perhaps a high 700s FICO by then), where I might apply for some 0% APR cards. Despite getting 8 lines of credit earlier this year, I'm sure one or two out of several apps will be approved considering my good credit score and considering how it seems some credit card issuers don't care as much about having a lot of apps as some others do.

If I can get even just ONE 5k limit 0% APR card, that should be enough for me to accomplish what I need to accomplish because I should be able to pay off a decent chunk by December the point of perhaps only needing about 5k to put on a card(s). I bet BoA Better Balance Rewards 12-month 0% APR offer would be a slam dunk app for me since BoA seems to like me a lot and gives me their best terms. Add in some credit limit increases, and I think I should be good to go. I don't think that's asking for too much. I've already accomplished more in the past two months credit-wise (8 successful apps) than I will be attempting to accomplish over the next 8 or so months (1-3 successful apps with a few credit limit increases here and there). If I fail to get any credit cards with 0% APR, THEN I will use my current credit cards. But that's not ideal. 13+% APR could mean $1,000 or more in interest over the course of a year. That would be a terrible decision when I could save myself from that. If I have to eat that, I will, but I don't think I will.

I do agree that BoA is pretty generous, but I heard that Discover is actually pretty stingy on their CLIs. I also heard that GE is pretty easy to get CLIs, so I might try to get my PayPal Extras MC up to $5-10k. Also, once Chase, PNC, Sallie Mae, etc., see that I have multiple 5k+ CLs, wouldn't it be easier to get them to give me CLIs as well a few months down the road? From a credit card company's POV, it would be wise to ensure that the CLs they give their customers are comparable to what other banks are giving them. Otherwise they risk that customer not using their credit card due to the hassle and inhibiting nature of having a lower CL.

Actually, I just thought of this. Ok, so assume that I am going to be applying for some 0% APR cards. Would it be better to wait until after I apply and get (hopefully accepted) for one or two 0% APR cards that I apply for CLIs with the cards that I got earlier this year rather than apply for CLIs for my current cards and THEN apply for some 0% APR cards later this year? Perhaps I'll get everything I want in that I will get at least some CLIs with my current cards AND I'll get one or two 0% APR cards, but if I do start getting rejected for anything, I'd rather be rejected for CLIs on my current cards rather than the apps for some 0% APR cards. I suspect the last things I apply for, whether that be applying for some 0% APR cards or CLIs on my current cards, will be the thing(s) that have the most chance of being rejected.

Thom02009, what money market account would be the best for me, btw? I'm not sure if I will end up using a savings account or anything like that, but it's certainly an idea. Most of my funds right now are being used toward buying and reselling retail items at higher prices, which is a better investment for me. I don't know if you knew that about my current money situation right now, but that's what I've been doing. I've been bringing in a net profit of about $500-1,000 a month just by doing that.
Whats's in the wallet: Discover It - $3,800 (5% rotating, ShopDiscover), Sallie Mae Rewards MC - $1,000 (5% on gas, groceries, and Amazon), Chase Freedom Visa - $1,200 (5% rotating + 10% extra w/ Chase Total Checking), PayPal Extras MC (1.66% on PayPal, 2.5% on Restaurants- $3,000, Bank of America Cash Rewards Visa Signature - $5,000 (Signature benefits), PNC CashBuilder Visa - $1,000 (Don't use), Fidelity Investment Rewards Amex - $5,000 (2% on everything)



. . . and some store credit/charge cards.



Future cards:



-US Bank Cash+ (for the 5% categories)

-1-2 0% APR cards for some big purchases I'll be making within the year

SpriteZero1017
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Postby SpriteZero1017 » Wed Apr 23, 2014 12:25 pm

Pardon my speaking so frankly here but I'll say this b/c no one really has - though a couple have implied it.

WTF is with a $13,000 guitar? I'm in the music business. Recording, specifically. I don't care if it's built out of rocks culled from Mars, there is nothing sonically or audibly better about a guitar built from these crazy-expensive woods or built by this particular luthier that is $10K "better" than, you know, your average super-expensive 2K or 3K guitar. If you believe that having this guitar will somehow make your road to professional music easier or more assured then you need to rethink things. If these sorts of instruments aren't required (or even helpful) by the world's most skilled or experienced musicians then it's hardly something that would help you with this quest.

It's certainly your money and you're free to spend it as you like but you're jumping through some very crazy hoops to try to jam thousand and thousands of dollars onto credit cards (hopefully interest-free, I know) for a guitar that, I'm sorry, won't help you a lick play better, write better, succeed more and I can almost guarantee would have other musician looking at you sideways because of your Holy Grail that they will think is silly and pretentious.

Go make music, write songs, make it go of it and never ever stop if it's what lives in your heart. But it's about the music and the song, not the instrument.

Rock on, my friend...just be careful. I'm sure the reverb will be great in the deep hole you may be digging but it may not be worth it.

grifenhagen
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Postby grifenhagen » Thu Apr 24, 2014 10:47 pm

Who's building you the guitar?
I'm not going to lie, I pawned my car title about a a year ago for a guitar. It's a fender masterbuilt strat.
It was too good of a deal to pass up and i knew I'd have the money within the next two weeks, but it was just such a good deal and I was afraid that it was going to get sold, so I pawned my car title.
Kinda embarrassing, but boy was it worth it.
Talk about high APR though, they loaned me 4 grand and when I went in 2 weeks later I paid them 4,370.
It was still totally worth it.



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