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05/08/2005 04:57:08 AM · #1 |
I am looking at finacing some new equipment and I was wondering what different options I have, and how they worked out in your case. Also if I put it on a credit card and pay it off in installments, does it affect my credit report? I cant seem to find a simple answer on this through my google searches.
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05/08/2005 05:08:40 AM · #2 |
If you don't pay it off it will affect your credit report. You have to watch out for those "No Payments for 2 years" plans, if you don't pay before the 2 years you get screwed big time.
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05/08/2005 06:10:41 AM · #3 |
you also have to remember that the credit company is in biz to make money as well. so it is to you advantage to pay more than the minimum monthly balance, but to also let the credit company make some money too to get the best possible credit rating on your personal report as possible.
also....alot of lights that we use at work you can find easily at Home Depot. With a little imagineation, you can save money in some areas, while spending quality monies in other areas where Home Depot can not help.
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05/08/2005 06:20:25 AM · #4 |
well first of all credit cards have INCREDIBLY high interest, so avoid them at all cost. If you can get a 'line of credit' from your bank that would be much better.
As long as you pay the minnimum montly payment on your credit card, it won't affect your credit rating. If you DON'T PAY that amount, it WILL affect your credit rating.
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05/08/2005 08:01:38 AM · #5 |
Unless you are making money taking photographs, don't finance the equipment. Going in to debt for camera equipment isn't worth it. By the time you get the equipment paid off, you will have paid large interest fees. There's nothing worse than financing for something, and then watching the price drop over time while you're still paying for it.
My advice would be to save up for it. By the time you have the money, there will be better equipment available for the same price. That's how I got my 20D. I was saving for a Rebel, and realized that in a few more months, I could own a Canon 20D. There's a lot of satisfaction in knowing it is now paid off in full.
Good luck with your decision. |
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05/08/2005 08:02:50 AM · #6 |
Never......ever....finance toys
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05/08/2005 08:16:24 AM · #7 |
I agree. Save up for them. And also, ask your self if you really need the higher end gear if you are an enthusiast, even if you plan to submit stuff for stock and haven';t begun too yet. Example: Do you really need a Canon 16-35mm f/2.8 when a Tamron 17-35mm f/2.8-4 Di will do the job almost as well?
I know that I have been putting off purchases until I finish asking myself important questions. Do I want to shoot mostly outdoors or indoors (f2.8 glass)? Do I plan on doing any potraiture ( lights)? Am I going to start getting interested in birds again (big honkin lenses)? Do I want to do more macro work since I enjoy nature so much (macro lense)? I am going to be doing more action shots (better camera body)?
All I can say is take you time
Message edited by author 2005-05-08 08:24:34.
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05/08/2005 09:38:32 AM · #8 |
| I agree with saving for it. But if you do use a credit card and make regular payments on time you will be improving your credit score. So maybe an alternative would be to save 3/4 of the purchase price and make the purchase on the credit card. Pay the 3/4's right away and make at least 6 months of regular payments on the credit card. Paying the bulk of the purchase price in the beginning is going to reduce the amount(in total dollars) you will pay for finance charges drastically. |
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05/08/2005 09:42:14 AM · #9 |
| It depends on how fast you pay it off. If the amount you spend on your card is very close to the limit of the card, it actually does affect your credit rating some. You'll also want to figure out how much more you're going to end up paying for these items once you calculate in the interest. Do you really want to be paying $1400 for a $1000 lens? |
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05/08/2005 09:42:37 AM · #10 |
Save up for it. It is worth it. And faster/easier than you would think. I saved up for my E-1 when I was unemployed/had irregular work. Just take 10% off every incoming amount on your account and put it on a separate account.
And it feels good to give the credit card companies/banks the finger over interests. :)
Message edited by author 2005-05-08 09:43:46.
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05/08/2005 01:03:16 PM · #11 |
When using credit to make a purchase, I've always found it is best to do a budget to see if my target date for payoff can be met. Do I have enough income to make the monthly payments needed to meet that deadline? Then I use a financial calculator to adjust my expectations.
Here's some quick calculations for purchasing a camera on a credit card.
I set the price at $1500 as a general price to buy a dslr. The $750 is 1/2 the purchase price. It's a dollar amount that I feel I can save within a couple of months. After doing the calculations, I would not feel bad financing the purchase over 6 months at an interest rate of 15%. I will be enjoying the benefits of using the camera after only a couple of months of saving, will have more disposable income during the 6 months it will take to pay off the camera and will be building a good credit rating. All for $29.45. If you can get a one year deferral on interest your final cost in interest will be $0 if you pay it off within the year.
Charged price 1500.00 interest rate 15%
monthly payment $100. takes 17 months, interest paid $171.59
monthly payment $150. takes 11 mths, interest paid $112.55
Charged price 750.00 interest rate 15%
payment $100 takes 8 months with total interest paid $42.48
payment $150 takes 6 months with total interest paid $29.45
Charged price 1500 interest 9%
monthly payment $100, takes 16mths, interest paid $97.24
monthly payment $150, takes 11mths, interest paid $65.21
Charged price $750.
monthly payment $100, takes 8mths, interest paid $24.98
monthly payment $150, takes 6mths, interest paid $17.34 |
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05/08/2005 02:15:17 PM · #12 |
Originally posted by leaf:
well first of all credit cards have INCREDIBLY high interest, so avoid them at all cost. If you can get a 'line of credit' from your bank that would be much better. |
I have 4 credit cards. All at 9.9 or less. Not incredibly high. Line of credit can be much harder to get, and the interest every time i have checked into it is higher than i can get on a credit card.
Many credit offers i get are for some very low interest for 6 months, maybe a year (2.9 or 3.9%). I am paying off a garden tractor that i got on one of thse deals 2.99% until it is paid off.
BestBuy often has 18 months same as cash. As long as you get it paid off, great., if not, it is often 23% interest, retroactive to day 1...you fall in a big hole in a hurry that way. I have bought printers, refridgerators and furniture this way.
If you own your home yo may be able to get a home equity line of credit - usually decent interest rates and the interest is tax deductible.
As to financing toys, the theory is Never Finance a Depreciating Asset. that would include cars of course.
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05/08/2005 02:36:07 PM · #13 |
I like some of the suggestions. I always save for my equipment and make the purchase with a credit card. I pay the credit card bill in full the next month. I always pay in full at every month, but I keep very good track of how much money is coming and how much is going out. I even think some of the better cards offer insurance on items purchased with them, so that may be a consideration as well.
Lines of credit are much better in my case since I have one that is 6.25%, a lot less than 18+% of some of my cards.
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05/08/2005 02:37:32 PM · #14 |
Originally posted by ReallyColorBlind:
Unless you are making money taking photographs, don't finance the equipment. Going in to debt for camera equipment isn't worth it. By the time you get the equipment paid off, you will have paid large interest fees. There's nothing worse than financing for something, and then watching the price drop over time while you're still paying for it.
My advice would be to save up for it. By the time you have the money, there will be better equipment available for the same price. That's how I got my 20D. I was saving for a Rebel, and realized that in a few more months, I could own a Canon 20D. There's a lot of satisfaction in knowing it is now paid off in full.
Good luck with your decision. |
very good advice.
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05/08/2005 04:03:14 PM · #15 |
See im looking at a starter dslr setup ie: Rebel xt, 2g CF Card (more later), 18-55 stock lens, 50mm f1.8, 70-300mm (havent decided which one yet), 550 ex, flash cord and bracket, and epson r800 (my photo processor went out of business this month and everyone else locally does a crappy job). + I already own a 28-80 2.8, 80mm macro, and assorted fd mounts with fd-ef adapter.
I have about 1/2 saved up right now, and I have excellent credit, and have a card with 13% apr and $3500 credit line (but credit is good enough now that I am getting offers for 8.9% and 9.9% with higher limits). I just didn't know if their was any sort of option other than cards or bank loans. Any sites out there with low apr financing.
Also I do make some money shooting products for ecommerce sites, which my current camera works for, but I need to upgrade to get more business. Plus i'm a photo major so I need to get it at some point because my learning curve on my current equipment is coming to an end.
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