Buying guns: Cash or Credit

[Hungry Seagull]

Ive got one car that I intend to pay off years ahead of schedule this summer.

Ive already crunched the numbers.

I can pay that vehicle off this summer and save... 4 years worth of payments. The money that they apply to interest before principle is about 4000 dollars total interest income.

I will be paying off this vehicle and putting the monthly money into a seperate account so that when this vehicle burns up I will walk into the dealer years from now cash in hand out the door with a replacement.

I had a engine burn up in a otherwise very good car. To this day I wonder if I should have spent only 3 thousand total and rebuilt this engine instead of replacing THAT car with this one that Im trying to get debt free.

The banker that holds the title is about to lose thousands in income from me and have to give me a paid off title.

If many others did the same, that banker will be out of the lending business.

 

[rbernie]

Well, I should say, insanely stupid UNLESS you have either (a) 0.00% credit line, or (b) you pay your credit card off every month and therefore incur no interest.

I disagree.

For example, I guarantee that a Sig 556 rifle bought in October on credit at 14% annual interest has accrued more equity than it has cost in interest served.

There are also probably times when buying on credit makes sense, such as when presented with a significant bargain or unique and coveted item, in a deal that likely cannot be duplicated later. Opportunity cost, and all that, ya know?

Blanket statements are always bad.

 

[runrabbitrun]

Well I made a firearm purchase with my stimulus check.

Thanks Uncle Sam... We don't say that enough.

 

[mljdeckard]

Buying on credit NEVER EVER makes more sense than saving in advance the same amount you would have in a credit line to have available for special situations.

Two ounces of discipline.

 

[Omaha-BeenGlockin]

Since I have no cards--its cash only.

Speculation: If one were to pick up some things on credit before the coming collapse---they will be free since not much as we know it now will really matter any more----just sayin.

 

[Eightball]

If I can't afford it, I don't buy it--that applies to everything, unless my car is broken down on the side of the road, and I need to charge to get it running in order to get somewhere (hasn't happened yet), or something of similarly pressing and urgent natures. That's why I keep a credit card around--not to routinely buy things I don't have the money for, but so that if everything is going wrong, I'm not completely SOL insofar as money goes.

To each their own, however.

 

[Cannonball888]

You left out

I usually buy on credit and pay it off immediately

I'm trying to build points on my cc. I get 1% back in cash .

 

[Hungry Seagull]

Obamabeenglocking, in the time of the 1930's the creditors who had outstanding loans failed to see regular minimum payments from thier debtors in sufficient numbers to support the economy.

So the Creditors started saying that the entire debt outstanding is now due and payable today in full.

That really drove the debtors into hell. And still the Creditors were not saved by this tatic, they too find themselves jumping off tall buildings.

That was 70 years ago.

I fear the day that credit card companies in the near future exercising thier final right to tell all thier debtors who still hold balances to pay thier owed money all in full by the end of the month.

That will be a black day for the USA. Maybe Im paranoid and have lost touch with reality, but just when I thought that all the basic values we have been taught as children that stood untouchable and sacred are all torn up and tossed out the window BY our children who somehow passed college and now are our leaders.

SIGH.

 

[KarenTOC]

I use my credit card for everything I possibly can, including guns. I have as many bills as possible paid directly by my credit card each month (phone, cable, electric etc). I'd pay my mortgage by credit card if they'd let me lol. I pay in full every month. I have the advantage of fewer bills to juggle monthly, and I get lots of "points." If a seller (of anything) charges a premium for using credit, I pay cash or write a check.

My credit card bill is paid automatically every month - my credit card provider directly debits my checking account for the total balance so I can't "forget" or "pay late" (i just have to keep track of my balance).

The trick to paying down your credit card in full each month is simple: don't use the credit card for anything you don't already have the cash for.

 

[waterhouse]

They're waiting for you to slip up, CRDN. I did it about two months ago, first time in about three years, cost me around $60.

My credit card has been attached to my bank account since I was about 15 years old (granted, I think I had a $100 limit back then). You may want to look into doing the same thing. I just look at the bill and make sure there is nothing fishy, and the full balance gets paid automatically.

15 years, no slip ups. Lots of free flights.

SNL has a great debt management program:
http://consumerist.com/consumer/clips/snl-skit-dont-buy-stuff-you-cant-afford-252491.php

 

[Straight Shooter]

I prefer to use my CC like cash (always pay it off in full each month) to get the rewards points.

But with the gun shop I like its cash or check. He gives a 5% discount to NRA members and 5% discount for military or ex-military but if you use a CC he takes one of the discounts away.

He has good prices to begin with and he knocks of 10% to boot. Gotta love it!

 

[Hungry Seagull]

KarenTOC is a very good way of using credit cards and working the system to avoid late fees and who knows how many other fees.

We use autodraft to have all of our bills paid on time. We have watched each and all of the normal billing for the home dates... move from the 20th of the month... to the 12th and eventually all are settled right after midnight on the 1st and the three days after of the month.

We were forced to inflate that bank account several months ahead of time to ensure that none of the autodrafts bounce after midnight on the first day of the new month.

We are afraid that they will try to go ahead and speed up the autodrafts from "Next month" on the 1st day into this month at the last week.

 

[runrabbitrun]

Speculation: If one were to pick up some things on credit before the coming collapse---they will be free since not much as we know it now will really matter any more----just sayin.

Yep just saying

 

[Yo2slick]

Instances where 3% is added to the price when a card is used... I use cash.

I use my debit card as I dont carry cash. If someone is going to charge me 3% to use my card then I dont shop there.

 

[CWL]

No paper trail.

I use cash although I can pay-off a cc charge. I just don't want another document with my name and gun purchase on it. Less paper trails, less visible footprint.

 

[maskedman504]

This has nothing to do with guns.

Do you buy anything on credit?

Do you finance a car? Or do you rent it? (Lease)

Do you finance a home? Or do you rent it?

Do you wear boxers or briefs?

Do you brush your teeth every night? And every morning?
_______________________________________________

This thread was over with the 2nd post.

 

[runrabbitrun]

Speaking of buying guns on credit.
I keep one card for emergency's.
It carries a balance, but it's manageable.

If Capitol One says:
'What's in your wallet? We are raising your rates and lowering your limit'...
(as is what is going on right now with some cc companies)

I'd say:
'Nothing for you Cap One...
If you have the right to amend the deal at any time, so do I.'

 

[Hungry Seagull]

Debit is not good for house either. The first time we used debit at a gas pump they locked up 75 dollars of our bank money account waiting for 20 dollars of gas to clear.

We make sure they do credit with something for me to sign from that point on. They hate it because it slows em down and makes the 10 people behind me wait a moment.

 

[mljdeckard]

Those of you who use cards to get the points and rewards might be doing it right. BUT:

If EVERYONE paid off their cards every month, collected rewards and never paid any interest, the banks would collapse. They operate on the knowledge that most customers START using cards with that intent, but wind up carrying a balance. They TOLERATE people like you who they don't make any money off of to sucker in the much larger percentage who will go into debt. The rewards and miles don't come from nowhere. Again, I would rather save 10K to use for such purchases than accept a credit card with a 10k limit.

 

[Hungry Seagull]

CWL, there is a vault with sufficient cash for us to fall off the paper trail for a long time.

The problem with that, is the dollar. Suppose a loaf of bread jumped from 2 bucks to about 20 dollars and kept rising?

The afternoon after 9-11 we awoke to 5.50 desiel where we had just fueled that morning for about 1.70 and change. Fortunately the pricing fell a bit afterwards.

 

[Zipperhead]

only cash for me. in the words of my father, "if i've got it, i'll spend it!"

Cash only for me too. In the words of my Grandfather: "If I don't have the cash, I don't need it that bad."

Zip

 

[Geneseo1911]

If EVERYONE paid off their cards every month, collected rewards and never paid any interest, the banks would collapse. They operate on the knowledge that most customers START using cards with that intent, but wind up carrying a balance. They TOLERATE people like you who they don't make any money off of to sucker in the much larger percentage who will go into debt. The rewards and miles don't come from nowhere. Again, I would rather save 10K to use for such purchases than accept a credit card with a 10k limit.

I agree with you to an extent, but remember, they also get 3-5% of every charge. That's why my dealer is much friendlier if you always bring cash, even though he will take credit. In reality, if no one used credit cards, everything would be 5% cheaper, but rather than lose the sale, most retailers just mark everything up 5%. The bank can afford to give me back my 2% and still make money even if I don't carry a balance or miss a payment.

The moral is, don't be angry if your FFL doesn't take credit; he's doing you a favor and keeping prices down.

 

[Geneseo1911]

doubletap

 

[Hungry Seagull]

Some shops actually get angry with me for breaking out the VISA. So I pay them cash and save them the percentage that they would have to pay VISA.

It's all good.

In fact, Im beginning to go all cash only because Ive learned that my bank likes to stack several VISA autocharges to the account with the largest amount first hoping to get all the others to bounce.

Since I stopped using VISA unless necessary the Bank has no choice but to process teh autodrafts on time in a timely manner for free. LOL.

We used to accumulate much rewards until one day about two years ago just about all of our credit card companies told us the same month that they are ternimating the rewards.

When the interest started to climb and the billing cycles shorten we began to see that there is trouble on board teh USS Creditfantasy.

 

[KarenTOC]

If EVERYONE paid off their cards every month, collected rewards and never paid any interest, the banks would collapse.

I doubt that. At the very least, they get 3% from the merchant for every transaction made on credit. I understand from one merchant that the fee for offering "under-$25-no-signature-required" credit card transactions is even higher. And banks do other things than provide credit cards. Savings accounts, home mortgages, small business and personal loans etc.

What excessive credit card use probably HAS done is raise the price of EVERYTHING about 3% to cover merchant fees. I would HAPPILY shred my credit card if prices would universally drop 3%.

I remember years ago banks threatened to charge service fees to customers who paid their balances in full every month. It didn't happen.