This better be a joke topic. I mean come on. If pay my mortgage month by month can I live in my house or do I have to live on the street, and look at it from a distance? I hope your under 16, to ask such a question. Seriously.
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If I Buy An iMac But Pay By Month, Do I Get It Now, Or Do I Have To Pay It Off First?
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Actually, IF AND ONLY IF you are disciplined enough to pay off the "12 months same as cash" financing before the interest gets added on (all 12 months' worth, often at 21% or higher), these deals make sense if you're not already strapped.
Considering that in 12 months, the dollar may well be worth 50% of what it's worth now, if Apple is willing to let us have now and pay back with inflated dollars later, I say take them up on it IF YOU CAN AFFORD IT. Arbitrage, baby.
As others have pointed out, "IF YOU CAN AFFORD IT" means that you can afford to pay your rent or mortgage, your car payment, your utilities, your revolving debt, and this new obligation, and still have more than enough money to buy food. Ideally, your DTI is significantly below 40%. If not, well, you can't afford it.
Yes, I know this doesn't really apply to the OP, a self-described thirteen-year-old with a case of the "I wants." My eleven-year-old is afflicted with the same thing, and after half a year of mowing the lawn, he'll finally have paid us back for his iPod Touch.
Considering that in 12 months, the dollar may well be worth 50% of what it's worth now, if Apple is willing to let us have now and pay back with inflated dollars later, I say take them up on it IF YOU CAN AFFORD IT. Arbitrage, baby.
As others have pointed out, "IF YOU CAN AFFORD IT" means that you can afford to pay your rent or mortgage, your car payment, your utilities, your revolving debt, and this new obligation, and still have more than enough money to buy food. Ideally, your DTI is significantly below 40%. If not, well, you can't afford it.
Yes, I know this doesn't really apply to the OP, a self-described thirteen-year-old with a case of the "I wants." My eleven-year-old is afflicted with the same thing, and after half a year of mowing the lawn, he'll finally have paid us back for his iPod Touch.
We all know those loans were bogus to begin with and the prices of the home values were irresponsibly inflated. Thats not a bailout, thats regulation after the fact.
Where I reside, Best Buy is offering (to qualified applicants) 36 months same as cash on purchases of 499.00 or more. If you must finance your purchase, this is a better alternative than Apple. (Barclay)
We all know those loans were bogus to begin with and the prices of the home values were irresponsibly inflated. Thats not a bailout, thats regulation after the fact.
I didn't use the word bailout. I'm very well aware of what the mortgages were and I stand by what I say.
I bought my first 2 laptops from Best Buy. Got my CC from them as soon as I was 18. Always got the 12 month same as cash deals but I just paid them off after 2 months. Great way to start off building a credit score.
Since you are 13, you have a long ways to go so you will not be able to purchase a Mac on credit by yourself. You already have a good computer, why would you need something like a newer iMac, sounds like it's more of a "want" than a need. But I guess you can just snap your fingers and daddy will buy it for you
Since you are 13, you have a long ways to go so you will not be able to purchase a Mac on credit by yourself. You already have a good computer, why would you need something like a newer iMac, sounds like it's more of a "want" than a need. But I guess you can just snap your fingers and daddy will buy it for you
Really? Is that just for your local Best Buy?
I have two Best Buys near me (Spring Hill, FL and Port Richey, FL) and have seen neither offer this.
This, I did this also, since they are offering 18-months no interest on any purchase over $499 and it is going to my Reward Zone points
Guess I am out of luck!
Debt To Income rate of 60% I assume that's using gross income. Wow!
Of course a 500 FICO says a lot as well.
To the OP, generally if you purchase computer hardware on credit, it will be rather old by the time you pay it off. When you factor in interest, it usually is not worth if for a personal purchase. Better to save the funds up front.
Personally, I save 100-200 per month for my technology purchases (computer, external HDs, software, table/chair, books). That gives me a budget of 2,400 per year which is enough for my needs. And if I need more, I can either save more per month or wait a little longer to make my purchase.
All trying to teach common sense to a 13yo .....
Just two points of view, one with a few caveats:
Buy it on credit if you have to. Like already said, you get it immediately, but you must keep making the payments. You will find it's easier to explain missed payments to the mafia, than to a credit company. Again, like already said, if this iMac is going to make money for you now, then getting it on credit now is the way to go.
Caveat: not quite sure why you need a new iMac if you have a MacBook already.
Caveat: you need to understand "bad credit" and "credit rating". If you miss payments, this will affect your credit rating, for the rest of your life. You may be declined credit when you try to purchase a car, or a house, or anything, even in 20 years.
If you must buy on credit, look for something that gives you a constantly low rate for a number of years. You only get these if you have a good credit rating (see previous point), but because you're not spending the money on something that has a high resale value, the interest rates will be higher than normal anyway (compared to buying property, or Apple shares).
If you don't get the credit through Apple, look at a refurb to save money. find out about an Educational discount at your school. These used (around 1984-1994) to be huge discounts on kit sold to schools and universities (I saved over £2000 on my first IIci setup). discounts are not huge any more but it is money you don't have to borrow.
So the other option is to save up for it. make do with your MacBook (I have to get by with my PBG4) until you can buy what you want. Again, look at refurbs.
Other options (for the more sensible ones):
Look at eBay and other 2nd hand sites - there's '000's of companies going to the wall each month. Expect the creditors to seize the Mac hardware and sell it to try to recover some of their money. Some will be this years models, often stuffed with extras, going for as much as the creditors can get, but make no mistake, they MUST sell it. You won't get a $3000 Mac Pro for $300, but you can expect from half price to 30% off.
Just two points of view, one with a few caveats:
Buy it on credit if you have to. Like already said, you get it immediately, but you must keep making the payments. You will find it's easier to explain missed payments to the mafia, than to a credit company. Again, like already said, if this iMac is going to make money for you now, then getting it on credit now is the way to go.
Caveat: not quite sure why you need a new iMac if you have a MacBook already.
Caveat: you need to understand "bad credit" and "credit rating". If you miss payments, this will affect your credit rating, for the rest of your life. You may be declined credit when you try to purchase a car, or a house, or anything, even in 20 years.
If you must buy on credit, look for something that gives you a constantly low rate for a number of years. You only get these if you have a good credit rating (see previous point), but because you're not spending the money on something that has a high resale value, the interest rates will be higher than normal anyway (compared to buying property, or Apple shares).
If you don't get the credit through Apple, look at a refurb to save money. find out about an Educational discount at your school. These used (around 1984-1994) to be huge discounts on kit sold to schools and universities (I saved over £2000 on my first IIci setup). discounts are not huge any more but it is money you don't have to borrow.
So the other option is to save up for it. make do with your MacBook (I have to get by with my PBG4) until you can buy what you want. Again, look at refurbs.
Other options (for the more sensible ones):
Look at eBay and other 2nd hand sites - there's '000's of companies going to the wall each month. Expect the creditors to seize the Mac hardware and sell it to try to recover some of their money. Some will be this years models, often stuffed with extras, going for as much as the creditors can get, but make no mistake, they MUST sell it. You won't get a $3000 Mac Pro for $300, but you can expect from half price to 30% off.
Do what I do man, just save up and buy it, credit is a horrible monster. Good things come to those that wait, and you will appreciate and enjoy it all the more. Besides (and this is just from experience and opinion I reckon) credit should be used for stuff like cars, houses, emergencies, porn eeerr porn blockers...
Also if you are 13 man, work hard, buy things that will last you, and if you have the money learn and invest into stocks and bonds..Apple would be a good start (but only when they are going for $150 or under just me though I guess)
Also if you are 13 man, work hard, buy things that will last you, and if you have the money learn and invest into stocks and bonds..Apple would be a good start (but only when they are going for $150 or under just me though I guess)