Guitar Center financing?

Discussion in 'Gibson Les Pauls' started by yankeefool265, May 26, 2011.

  1. yankeefool265

    yankeefool265 Member

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    Before i say anything, sorry if this is in the wrong forum. Im pretty new here and didnt see any forum that made sense to post this in, so please let me know for future reference where this type of post should go.

    Anyways...im looking to buy a Gibson studio deluxe, and would prefer to buy it new so I can be the first person to enjoy the sights and smells of my first Gibson, but i dont have the money right now. What kind of financing deals does Guitar center offer? For the month of May they have one where they dont charge interest if you pay in full in 12 months. Is this pretty much what they offer all the time? I really have no idea, so any input is welcomed. Thanks guys.
     
  2. Harpozep

    Harpozep V.I.P. Member

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    Pretty standard offer in many circles, Hi-Fi, TV, Appliance stores, etc.
    But be SURE to pay it off completely prior to the time limit because the interest will be high, around 29% AND retroactive!
     
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  3. rockin'rolldad

    rockin'rolldad Senior Member

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    GC doesn't really finance. They just give you a credit card.
     
  4. lespaul01

    lespaul01 Banned

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    I agree, if you do take it, set some money aside each month or make monthly payments. Then at the end pay it off the day before it is due.

    back when I was building up my credit that is how I always did it. I would take the 12 Months option and set the payments aside each month. Come the end I would have enough to pay it off in full and I would go in 24 hours before it was due and pay it in full. These 12 month no pay options are imo just rackets. They know that the majority of the people are now going to bother paying it off on the 12 months and the last thing they want is for you to pay it off before due.

    Hope it works out for ya.
     
  5. Oranjeaap

    Oranjeaap Senior Member

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    I hate loaning. I say you should save up untill you have enough money and buy it when you saved up enough. Or settle with a second hand guitar.
    Preferably a combination of both. So you can buy a nice standard instead of a studio.
     
  6. Thunder Dump

    Thunder Dump Senior Member

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    I use their card all the time and never paid a dime of interest. Borrowing someone else's money is better than tying up my own when I don't have to. HOWEVER, you need to be disciplined to make at least the minimum payments on time every time, and pay it in full before the end of the finance period or you get socked with some serious interest back to day 1.

    If you can do it and be responsible for it, it's worth getting a 12-month interest-free loan.
     
  7. BrianM

    BrianM Senior Member

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    +1 on saving up and buying when you have enough cash stashed.
     
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  8. tonyled

    tonyled Senior Member

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    +1

    a savvy person can make this work to their advantage

    as cool as it is to say save up and pay cash these kinds of loans build credit history
     
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  9. BentheMighty

    BentheMighty Senior Member

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    For responsible people credit cards are there for a purpose. But that retroactive high ass interest rate is a killer.

    What that means is if you haven't paid the card off in the 12 months of no interest, then you get charged the huge interest rate not from what is left in the balance, but for the FULL COST OF THE GUITAR.

    If you can avoid that through diligent payments and budgeting then hell yeah man!
     
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  10. Rock

    Rock Senior Member

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    +2
     
  11. ScottP

    ScottP Senior Member

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    Actually having too many credit cards works against you on your credit report. You should only have two tops, and they should be reputable VISA AMEX..etc.

    True, these store cards are tempting and reward you with instant gratification, but go over the 12 month time limit and regardless of where you are in your payments you pay interest on the full amount.

    Having a number of lines of credit (Best Buy, Home Depot, GC etc) works against you. Even if you have paid them off in full. Trust me - I'm somebody who has bought multiple homes and watches his credit carefully because of a problem early on.

    When opening a line of credit choose wisely. And yes, cash is king!
     
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  12. cooljuk

    cooljuk Transducer Producer Premium Member MLP Vendor

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    If you have even just one penny left to pay off on day 366, they ding you the interest on the FULL amount at an absurd percentage. Just remember that.
     
  13. Deej

    Deej Senior Member

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    Yes, use them wisely, and be prepared to be kicked in the butt if anything goes wrong.

    I had a BestBuy card that, when we moved, we needed/purchased a washer/dryer and fridge on, with the 12 months no interest (actually, I think it was a longer period special). A couple of months before the time was up, I lost my job, and because I was unable to pull off paying down the "full amount" at the end, which was only a few hundred dollars left at that point, I got hit with some $1200 in back interest on a $4000 purchase at 29%... it was crazy, and could I get them to give me an extension, oh no. It's now paid off, but it took that much longer...

    So, if you do it, know that if anything goes wrong for you during that 12 months, and you don't get it paid off, that interest is going to kill.

    Deej
     
  14. zslane

    zslane Senior Member

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    And therein lies the rub. Judging from the current economic crisis in the U.S., not many Americans have the discipline you speak of. For them, these financing plans are as dangerous as offering free meth to an addict.

    Hmm. My credit reports seem to suggest otherwise. I enjoy a rather high credit rating, but the section of the report on possible reasons why my credit rating wasn't even higher was because I didn't have more credit sources, despite having four or five credit cards. I also hadn't taken out any loans recently, which apparently hurt my rating. Basically, my rating was penalized for the fact that I wasn't exposing myself to more debt risk. Go figure.
     
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  15. your idol

    your idol Senior Member

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    All the revolving store credit cards are done by hsbc... Better pay it off intrest free.. 22% after a year.. Pay late 29% plus outrageous late fees. They will bury you. Im working on slaying a 4000 best buy card as we speak. My wife just 1 yr financed my standard but $170 a month will kill it in 11 months and its in the budget.. We coulda paid cash but im almost an 800 credit score shes a 6something so paying this off slowly is to build her credit
     
  16. joesatch

    joesatch Senior Member

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    The best financing is through Best Buy. They are a Gibson dealer and can match any price. They usually give you 2 years, no interest.
     
  17. dspelman

    dspelman Senior Member

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    As has been voiced, never miss a minimum payment and never let any part of the balance exceed the end date.

    There's more, however. If you buy other things at other dates, you need to be VERY aware how the credit card company is *apportioning* the payments you make, particularly if you're paying the minimum. You may find yourself having only about twenty cents per payment credited to an item you bought 11 months ago. Screw up and the credit card company they use (some firm in Nevada) will present you with several reams of user agreement and a bill for 29% interest on an item you thought you'd paid off.
     
  18. tonyled

    tonyled Senior Member

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    this is my experience as well. too many cards only hurts you if they are maxed out. otherwise, this keeps your ratio very low.
     
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  19. RobertF

    RobertF Senior Member

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    Great advice from the others here. I've used these types of deals many times over the years but only if it works to my advantage.

    The way I've done it is to figure out a monthly payment that will allow me to have the balance paid off interest free several months before the promotional period expires, and I make that payment every month. No worries.

    I'm not a fan of making only minimum payments and "saving" up the rest over the promotional period for a lump sum payment at the end. There can be too much temptation to spend that money for something else...! Either way, you've got to be sure you are going to have the money and the discipline to commit to paying it off, in order to avoid the sock-it-to-me-interest hit.
     
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  20. Infamous

    Infamous Member

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    Keep in mind that GC may give you a percentage discount on your purchase when you open a GC credit card.

    I recently had the cash for a LP, but opened up a GC credit card to get the 15% discount. That discount applied to the whole purchase amount, even though I only "financed" part of it and paid it all off a few weeks later. Haven't used the credit card since!
     
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