prophetik music Posted March 12, 2009 Share Posted March 12, 2009 http://gamerdeals.net/blogs/cheap-ps3/archive/2009/03/11/sony-offers-200-credit-on-349-purchase-w-sony-card-thursday-saturday-only.aspx you've gotta get approved (instantly) for a sony credit card. you get 200$ credit on any purchase over 349, including ps3s. there's a catch, of course - the 200$ isn't posted to your account for 8-12 weeks, and then it's only as a credit to the card, to entice you to buy more games. but if you can wait the 2 months for the credit, you'll get a ton of money back. it's only thursday through saturday. so, if you want one, get on it. Quote Link to comment Share on other sites More sharing options...
Sindra Posted March 12, 2009 Share Posted March 12, 2009 Hmmm...I have been wanting a PS3, but only for a handful of games that cost a shit-ton. Though having the blu-ray player would be a nice extra. Quote Link to comment Share on other sites More sharing options...
prophetik music Posted March 12, 2009 Author Share Posted March 12, 2009 well, since it's only a credit and not a chargeback, you could use that 200$ to buy games. in two months. Quote Link to comment Share on other sites More sharing options...
zircon Posted March 12, 2009 Share Posted March 12, 2009 Opening a new credit line to get some sort of bonus is an awful idea. You'll lose more money in the long run because your credit will look worse as a result (more open credit lines = bad for your credit score) and future loans will be less favorable. Quote Link to comment Share on other sites More sharing options...
prophetik music Posted March 12, 2009 Author Share Posted March 12, 2009 *shrug* i'd open it until i get my credit to my account, spend it, and then close it. four months, tops. credit scores are generated crap, anyways. if you hold down a job - any job - your credit will 'resurrect' itself within five years. it's all garbage to force you into doing things you wouldn't normally do. pay with cash, that's what i do - cash and debit cards. my wife has a credit card we use for gas and 'just-in-case', and that's it. Quote Link to comment Share on other sites More sharing options...
zircon Posted March 12, 2009 Share Posted March 12, 2009 Wow... you really need to take a personal finance 101 course (or read the Consumerist more). Credit scores are really important if you ever care about getting a house. Quote Link to comment Share on other sites More sharing options...
prophetik music Posted March 12, 2009 Author Share Posted March 12, 2009 again, like i said. pay cash for just about everything. my parents did it, my wife's parents did it. it's completely doable. also, like i said, the importance of credit scores are highly overrated. you can get by in life by just having what you need without buying on credit all the time. Quote Link to comment Share on other sites More sharing options...
Bahamut Posted March 12, 2009 Share Posted March 12, 2009 Opening a new credit line to get some sort of bonus is an awful idea. You'll lose more money in the long run because your credit will look worse as a result (more open credit lines = bad for your credit score) and future loans will be less favorable. Not even just that - the types of your credit matter a lot. If companies see that you're in it to freeload off of these types of bonuses, your credit rating is hurt by that. Quote Link to comment Share on other sites More sharing options...
Toadofsky Posted March 12, 2009 Share Posted March 12, 2009 Wow, I'm glad this wasn't one of those stupid ads people have been spamming on the boards lately... Quote Link to comment Share on other sites More sharing options...
SLyGeN Posted March 12, 2009 Share Posted March 12, 2009 again, like i said. pay cash for just about everything. my parents did it, my wife's parents did it. it's completely doable.also, like i said, the importance of credit scores are highly overrated. you can get by in life by just having what you need without buying on credit all the time. If you're doing that, then you have little to no credit. Since I'm in college now, the parents are pressing me to get a credit card and use it often to build credit. Although I'm interested to hear more about what you had to say, Zirc. How does signing up for a new card adversely affect your credit score? Quote Link to comment Share on other sites More sharing options...
zircon Posted March 12, 2009 Share Posted March 12, 2009 Your credit score is determined in part by how many open credit lines you have and when they were opened. Someone with good credit has one or maybe two credit cards and that's it, and they are all fairly old accounts. If you are constantly opening and closing accounts then you look unreliable. Prophet; you're going to pay for your house in cash? Upfront? Did you win the lottery or something? You need a mortgage to buy a house. You most likely need a loan to buy a car unless you're buying one that is very cheap. The problem with paying cash for everything is that even if you DO have the money for a huge purchase, what are you going to do if something comes up afterwards that requires a ton of money? ie. Some sort of hospital emergency, a fire in your home, a lawsuit, etc. The point of taking out loans to make big purchases is that you're not completely draining your savings. Credit is awesome. Quote Link to comment Share on other sites More sharing options...
Rambo Posted March 12, 2009 Share Posted March 12, 2009 Your credit score is determined in part by how many open credit lines you have and when they were opened. Someone with good credit has one or maybe two credit cards and that's it, and they are all fairly old accounts. If you are constantly opening and closing accounts then you look unreliable.Prophet; you're going to pay for your house in cash? Upfront? Did you win the lottery or something? You need a mortgage to buy a house. You most likely need a loan to buy a car unless you're buying one that is very cheap. The problem with paying cash for everything is that even if you DO have the money for a huge purchase, what are you going to do if something comes up afterwards that requires a ton of money? ie. Some sort of hospital emergency, a fire in your home, a lawsuit, etc. The point of taking out loans to make big purchases is that you're not completely draining your savings. Credit is awesome. I'm very interested in everything you've had to say so far. What about my case? I don't have a credit card, and I've been looking to get one for the very reason of building credit. I've got lots of money in the bank, but no credit line, and that's something I should get on. Should I do this and use it as my main line of credit? EDIT: I just re-read the first post realised that to be "instantly approved" I would already need a credit card. Foiled... Quote Link to comment Share on other sites More sharing options...
zircon Posted March 12, 2009 Share Posted March 12, 2009 I'm very interested in everything you've had to say so far. What about my case? I don't have a credit card, and I've been looking to get one for the very reason of building credit. I've got lots of money in the bank, but no credit line, and that's something I should get on. Should I do this and use it as my main line of credit? Absolutely. Get a card that has no monthly or annual fees (there are plenty like this) - a Visa through your bank would do the job. Amazon Visas are also excellent, as 1-3% of the money you spend is converted into Amazon credit in $25 increments. No monthly/annual fees on those either. Once you get the card you'll probably have a credit limit of $500. You might even need to tie it to the account of someone else if you can't show that you have the capability to pay it off (through your employment, for example - they'll ask you that, among other things). Once you get it, use it as MUCH as possible in any situation where you actually have the cash in your bank account. Pay the card off weekly. You'll never pay a dime in interest if you do it this way, so there's no harm. If you use the card all the time and pay it off very quickly, your credit line will increase. I went from $500 on one card which I got when I turned 18 to $8,700 on two cards now (I'm 21). The other advantage to credit cards is security, believe it or not. Credit card companies are very, very good at fighting on your behalf. If you get scammed or your card gets stolen, you're not responsible. The card company will take care of it. If someone steals your debit card and drains your account, you might be out of luck. Likewise, your bank might not care enough to fight for you to get you a chargeback (if that's even possible on a debit card - I'm not sure) whereas credit card companies almost always will. Quote Link to comment Share on other sites More sharing options...
Rambo Posted March 12, 2009 Share Posted March 12, 2009 Thanks for the info Zircon. I hadn't heard about an Amazon Visa. That's pretty sweet. Will look into it. Quote Link to comment Share on other sites More sharing options...
sgx Posted March 12, 2009 Share Posted March 12, 2009 I'm very interested in everything you've had to say so far. What about my case? I don't have a credit card, and I've been looking to get one for the very reason of building credit. I've got lots of money in the bank, but no credit line, and that's something I should get on. Should I do this and use it as my main line of credit?EDIT: I just re-read the first post realised that to be "instantly approved" I would already need a credit card. Foiled... About 8 months ago (when I was 24) I finally wised up and decided I should actually start building credit. Up till then, I'd had no debt, no car payments, no student loans, and I paid for everything with my bank's check card. I went to my bank to get their credit card and I got rejected like three times because I was past college age and I had no credit history. No credit = BAD credit. Now, I have a chunk of money in that bank. I've been saving a lot of money for the future, and my dad has given me some chunks of money in CD's for the future that I don't plan on touching till I'm dropping money on a house. It's a pretty decent chunk of change I have at my bank (Chevy Chase Bank on the east coast) and they can't get me a freaking card. I applied to a couple other cards and got rejected, finally I was able to get the Amazon VISA card which has worked out well, and it's not a crap card. Well, I don't know how good the APR is, but I pay everything off every month so I don't care. I think my credit is improving with this card since I spend a bunch on it (I pay for travel for work with it often, which they refund me via check) and they've raised my limit. I am interested in buying a house soon, but I am pretty doubtful I'll be approved for a loan I can work with due to my credit score. I may have to wait for a year or more. You should establish credit ASAP. I've looked at this Sony card deal before (the same deal comes and goes all the time, so don't think this is a one-time offer). It's a fine deal if you actually plan on keeping using the card long term, and the terms and rates of the card are agreeable to you. As Zircon says it is a BAD idea to start and cancel a card. Quote Link to comment Share on other sites More sharing options...
Sole Signal Posted March 12, 2009 Share Posted March 12, 2009 Good tips from zircon. They should make stuff like this a required college freshman class (or better yet, senior in high school). In my 4 1/2 years in college, I NEVER came across any advice or tips for "real life" when it comes to building credit, home buying tips, or personal finance (aside from my finance courses due to my major). Quote Link to comment Share on other sites More sharing options...
StarZander Posted March 12, 2009 Share Posted March 12, 2009 I don't really know anything at all about American credit policies, but where I live having used no credit cards is a GOOD thing. The more you use them, the smaller the chance is that you might get a big loan for a house. To me that feels more logical, but I can see both systems working. Using credit here is very rare, and I can't understand how it is to always have debt. And from what I've heard, a lot of people actually use credit for everything, and then just pay back a small amount of it? How does the credit card companies survive on this? Or is it just a false rumor? I'm just curious. Quote Link to comment Share on other sites More sharing options...
Strike911 Posted March 12, 2009 Share Posted March 12, 2009 And from what I've heard, a lot of people actually use credit for everything, and then just pay back a small amount of it? How does the credit card companies survive on this? Or is it just a false rumor?I'm just curious. It's no rumor. Credit card companies generally would prefer that you do this as long as you eventually pay off your debt. Little fees are added the longer you go, and the credit card companies take that income for loaning you the cash to buy whatever you wanted. Over time you can see how those small little fees start to add up, even though they don't look that big when you get a bill. As long as you pay the bill off over time, they make cash. So they're happy. If they make a couple bucks of of millions of people, then you can easily see how much money this would get them. Well, if you use a credit card and pay it off immediately, they're not making much. But as time goes on, the companies add interest the longer you go. Sure some people just can't pay, and in those situations, I imagine the company just repossesses whatever it was and auctions it off. For more normal folks that just let their expenses pile up, the credit card companies charge interest, and then they make money off of those little fees. Credit card companies want you to pay a little late, and keep some money in their accounts, because they get to charge you a little more and little more and little more the longer it goes. Right now though, I know a couple of people that are having problems paying just the interest to credit card companies. After you attach fees to things, you might have paid well over the value of the actual good or service you bought, just so you could get it before you had all the cash. But that's just how it works. When it catches people off guard, they get caught in a loop. The folks I know lost their jobs, and hit hard times, but were buying just a little too much on credit. They paid the minimum amount to keep from falling behind, but probably won't be able to pay their debt entirely for a while. They making minimum payments every month, but are nowhere near getting free from having this credit debt. The bill just compiles and keeps adding up, despite the fact that they keep paying every month. How much extra are they paying? Damn. A lot. A hell of a lot more than they wanted to, that's for damn sure. But if you want to have things without cash up front, you have to be willing to incur little fees, that happens. Of course, the scenario I'm talking about above is a little... overboard, but as you can see, one day these people will probably pay things off, but for now, they're stuck paying minimum payments. The credit company has consistent income every month. Much of the reason for the economic crisis in America (I don't know about other countries sadly) is because people bought outside their means. So now that the economy sucks, they're having problems paying everything off consistently. In mass, if no one could pay their credit bill, the system would shake a little. For instance during the Great Depression. During the 1920s their was a credit boom that just... popped later in the decade. (Clearly this wasn't the only issue [disparities in wealth, demand vs. supply] but it did contribute) The moral of the story is to try not to spend what you don't have, and in cases where you're forced to (mortgage, emergencies, etc.) make it your first priority to get that debt eliminated. In some cases it might mean altering your current lifestyle a little, but you at least won't get pulled into a scenario where you're in perpetual debt. So, in short, these companies make the money off the fees... and in severe cases, if you don't pay, since you used their money, they can go and take back whatever you owe them. The $200 bucks they're offering to sign up, are nothing compared to the amount they'll probably make off of most average Americans. The companies have done pretty well for themselves (barring any economic issues recently). It is hard though, because the system in which money is transferred around in the US (and most of the world) hinges on credit. This isn't entirely bad when people are careful with how much they're spending. Again, the Great Depression, for example, once credit was stabilized allowed poorer people to start putting money back into the system while still having enough on hand to buy other things... have a home AND buy food. Loans caused the problem, but were also an important key to solving the problem. Things have to stay healthy. he United States' has multiple systems ranging from government spending to regular everyday domestic economic activity that all hinge on the concept that people want/need things right now and would prefer to pay for them over time to get them. Sure it's ideal to have the money ready in full, but that's just not a reality for most people (for better or for worse). It's really just a convenience thing for me to use a credit card. Debt's bad. haha. Quote Link to comment Share on other sites More sharing options...
Hector Posted March 12, 2009 Share Posted March 12, 2009 Credit Card companies make the bulk of their money on the semi-responsible and those who are irresponsible until they realize they can barely pay their bills. People who always pay everything immediately don't give them much money and people who are too irresponsible could lead to the credit card company losing money (things lose value after purchase). Credit allows you to spread a big cost out over time--that's its major advantage. I've been stubborn and paid everything with cash so far--but I am have not had to make any 5-digit purchases yet. Quote Link to comment Share on other sites More sharing options...
zircon Posted March 12, 2009 Share Posted March 12, 2009 Don't forget that some cards have fees. You know all those fancy rewards cards by companies like American Express? How about "Gold" and "Platinum" cards? These might have high spending limits and give you some sort of bonus, but they often require that you spend a certain amount each month, OR they charge you just for HAVING the card. For some people, the bonuses of such a card make up for the fees; I'm just using these cards as another example of how CC companies make money. Quote Link to comment Share on other sites More sharing options...
sgx Posted March 12, 2009 Share Posted March 12, 2009 In the US there's a culture of instant gratification combined with poor education about credit (credit cards = free money omg wowz!), plus the need to one-up your neighbor with fancy status symbols (huge SUV's with spinnerz, yo) that is pretty killer. I think this recession we're in has burst a lot of bubbles and a lot of people will probably be a lot smarter in the future. Even before the mega-recession, like mid 2008 when things began their downturn and I lived in a crappier town, I was seeing TONS of said huge SUV's with spinners with for-sale signs. Driving around the neighborhood (PG county, Maryland) you'd see all these expensive cars parked in the driveways of crappy houses in this crappy area. WTF were these people thinking? Quote Link to comment Share on other sites More sharing options...
noTuX Posted March 12, 2009 Share Posted March 12, 2009 (more open credit lines = bad for your credit score) and future loans will be less favorable. Actually its the opposite for me. I always had a problem not having enough credit lines open. I had great a credit score (700+), but I didn't have enough credit lines open, so I had a ridiculously hard time getting anything. From my limited experience with this, I found that the key is to open credit lines and actually keep them paid off. That in turn, helps your credit tremendously. Every once in a while, you go out and buy some stuff on credit (even if you have the money to pay for it), and when your statement comes in, pay it off. Screw that minimum payment shit. Pay it off! And repeat it over and over again. I've been doing this for a couple of years now, and my combined credit score is about 770. Sorry if this seems like a lecture, but this is how I managed to get my credit up. Quote Link to comment Share on other sites More sharing options...
StarZander Posted March 12, 2009 Share Posted March 12, 2009 I have a VISA debit card, that I pay a yearly fee just to possess, but that sum is so small it's not even noticeable (about $15 every year). I guess the fee might be bigger if it's a credit card... From all the news I've seen, heard and read the US seem to be one of the countries who are worst off in this world wide financial crisis. Are all these loans/debts and need for credit scores the biggest reasons for this? Quote Link to comment Share on other sites More sharing options...
Sindra Posted March 12, 2009 Share Posted March 12, 2009 I was always of the mind that surviving on your debit/check card would be preferable, since I would constantly hear about how cousins of mine would get themselves in ridiculous amounts of debt because they got theirs and acts like morons with spending. However, once I started paying my own tuition for the junior college I went to, I figured I finally needed one. Had nothing to do with wanting good credit or anything....I just wanted more time to pay off my tuition. Debit card only held off a few days before taking the money out of my account. With a credit card, I had a whole month to make sure I had enough funds. Since I've had the card (through my bank too, thankfully), I've always paid the entire amount off when it's due, rather than the minimum $15, so no interest charges have hit me yet. Only a few times when my payment didn't get accepted by the due-date did I ever get charged fees for being late. Quote Link to comment Share on other sites More sharing options...
Sole Signal Posted March 12, 2009 Share Posted March 12, 2009 @ StarZander It was a combination of factors, but that was probably the biggest issue. The easy credit that was given (i.e. subprime mortgages), and the subsequent investment of major financial institutions in these subprime mortgage packages made people happy for a time but was destined to crash. It all comes down to greed. People trying to live beyond their means, lenders trying to make a quick buck, and investors thinking that the high interest rates on these mortgage packages make them a good idea in which to invest. Quote Link to comment Share on other sites More sharing options...
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