Friday, August 7, 2009

Credit Experts, Please Read My Question?

Hi,



I%26#039;m Alex, and have a serious question for you all. One of my biggest dream is to buy a Kramer Paul Dean Signature guitar. There is one person who is selling me his model, however he wants $800.00 for it. Some things to know are the following, I do have a Capital One card, Macy%26#039;s, JC Penney as well. My Capital One card does not cover that amount. Also I%26#039;ve already applied for two personal loans at Banner Bank %26amp; Bank of America and both declined my request. They said I didn%26#039;t have enough credit history, I honestly don%26#039;t know why since I always make my payments on time and never miss any payments. So I get an offer from Visa Platinum that has a $1,000 credit limit, should I accept it just to purchase my dream guitar?



It does have high interest rates, but I have a feeling once the guitar is paid off, it will be worth it all.



My question is this - Should I apply for that Visa Platinum to make the purchase of the guitar?



Also, how much would the payments be each month?



Credit Experts, Please Read My Question?student finance





Alex,,



Here%26#039;s the deal, if you get the credit card and borrow $800 on it, it will hurt your credit score.



Your minimum monthly payment will be about $25 or $30



(You can ask the credit card company what your payment will be)



If you pay $30 a month, that is $360 a year. You will be paying that for about 25 or 30 years. So the $800 Guitar will cost you about $9,000.00 to $10,000.00 over time.



How bad do you want it??



Credit Experts, Please Read My Question?

loan



dont do it|||don%26#039;t do it see if the guy will allow you to make payments to him directly (get a written contract ) and i would offer a 100 a month|||You should save money to buy the guitar. This way the interest rate works for you rather than against you. If you pay $100/month you will pay almost $50 extra(paying 745.26 total) if your interest rate is 18%. However depositing $100/month into an account earning 6% you end up with $10 extra.



The difference is greater if you look at $50/month over 14 months.



I might not seem like a lot of money in this example, but if you repeat this choice over and over it will either increase or decrease your standard of living with the same income.

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