#1
So I purchased a guitar on boxing day and took the option of paying equal installments monthly for a year. I chose this option only because the guitar I wanted was 15% off compared to when I will wait for my student loan the next week. The private financing company has then sent me a credit card but I don't really want one since I am a student. I have now received my extra student loan so I can now pay the money that I owe from the financing company.

My question is, if I pay the entire amount that I have borrowed, I can just cancel the credit card right? (I HAVE NEVER OWNED ONE SO I AM CLUELESS AND I HAVE NOT ACTIVATED THE CREDIT CARD THAT THEY HAVE GIVEN ME YET).

Thanks! I am just a bit scared and clueless. I will never do financing again...
#2
Quote by hahahahaha014
I will never do financing again...


Are you gonna pay cash for your first house?
There's no such thing; there never was. Where I am going you cannot follow me now.
#4
Quote by theogonia777
Are you gonna pay cash for your first house?

Not until I learn how it works haha!
#5
Quote by Jako215
The credit card will fuck you in the ass until you turn gay and like it or bleed to death.

So do not activate the card is what you're saying?
#6
Cut the credit card up and throw it in the bin. Then, pay off your guitar as fast as you can, otherwise you'll find you've paid much more than it's worth due to the interest rate from the company you borrowed the money from.

Also post pics of your mom
#7
So as long as I pay everything before it's due, then I don't have to do anything with the card that I got. Thanks! That made it clear for me!
Last edited by hahahahaha014 at Jan 7, 2016,
#9
This is what’s known as predatory lending. The lender knows that you’re young and a student. They know you make bad financial decisions like taking out student loans in excess of what you need for tuition + room and board. Based on that they’re investing on the likelihood that you’ll miss a payment, at which point the interest rate will skyrocket and you’ll also be hit with late fees. Then, if they’re lucky, you’ll use the credit card to make up for being short on cash due to a late fee and higher payments. What you need to do is pay off the guitar right now, cancel the card, and not do foolish things like this in the future. Think about it this way: anybody who loans money to college students for guitars is not someone you should sign a contract with!
#10
Financing something as inexpensive and as frivolous as a guitar (in relative terms to other things that are often financed, like a house) doesn't make any sense. Interest rates will force you to pay more for the guitar over the long term than if you just bought the guitar outright. Only finance things if you're desperate for them (you can live without a guitar a lot easier than living without a place to live) and you have no other financial option.
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Last edited by T00DEEPBLUE at Jan 7, 2016,
#11
Quote by jpnyc
This is what’s known as predatory lending. The lender knows that you’re young and a student. They know you make bad financial decisions like taking out student loans in excess of what you need for tuition + room and board. Based on that they’re investing on the likelihood that you’ll miss a payment, at which point the interest rate will skyrocket and you’ll also be hit with late fees. Then, if they’re lucky, you’ll use the credit card to make up for being short on cash due to a late fee and higher payments. What you need to do is pay off the guitar right now, cancel the card, and not do foolish things like this in the future. Think about it this way: anybody who loans money to college students for guitars is not someone you should sign a contract with!

Yes! I have learned from this haha! Thank you!
#12
Quote by T00DEEPBLUE
Financing something as inexpensive as a guitar (in relative terms to other things that are often financed, like a house) doesn't make any sense. Interest rates will force you to pay more for the guitar over the long term than if you just bought the guitar outright. Only finance things if you're desperate for them (you can live without a guitar a lot easier than living without a place to live) and you have no other financial option.

It was 0% financing, as long as I pay monthly, which I did for my first month, so I went with it. Just got scared when the credit card was mailed to me.
#14
Quote by TheChaz
hahahahaha

hahahahaha
SANDBLAST YOURSELF.


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Wake up sheeple.

Sunaj
#15
Quote by hahahahaha014
It was 0% financing, as long as I pay monthly, which I did for my first month, so I went with it. Just got scared when the credit card was mailed to me.


Are you paying into an account monthly or direct debit? If direct debit then just destroy and discard the credit card if you don't want it.
#16
this depends on your ability to handle money. if you know you can use it to buy things you know you can pay off every month, it's good tool to use in building good credit. if it was mine, I would tear it the fuck up
#17
Which lending institution is it? Terms are different for different institution, so you just gotta read the agreement so you can decide what to do.
#18
It sounds like you signed up for a store credit card which offers financing terms. This is common at many retailers such as Best Buy, Macy's, etc.

All you need to do is register for an online account with the card issuing bank and enroll in autopay for the next year to pay it off. DO NOT cancel the card. Assuming you can make the payments, you may as well start building credit and a credit history. The credit card most likely has no annual fees, so you shouldn't incur any cost of owning / using the card or credit line. But again, do not cancel even if you never use it again after paying off the financing, because that will damage your credit AND eliminate the work you just put into your credit history.

tl;dr pay off the financing, build credit, do not ever cancel the credit account.


source: I have a > 750 credit score bitch


Quote by T00DEEPBLUE
Financing something as inexpensive and as frivolous as a guitar (in relative terms to other things that are often financed, like a house) doesn't make any sense. Interest rates will force you to pay more for the guitar over the long term than if you just bought the guitar outright. Only finance things if you're desperate for them (you can live without a guitar a lot easier than living without a place to live) and you have no other financial option.

Not necessarily true. There are plenty of retail incentives to finance with 0% interest rate for x amount of time. A good and free way to build credit.

...modes and scales are still useless.


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Last edited by Xiaoxi at Jan 8, 2016,