How much credit do you have to build a HT?

[P-Dub]

So how much credit do you have to purchase gear?

Now this should be the fun part. Take the credit
limit on each of your cards, and line of credits and build a HT system out of your total available credit.

I'm gonna need a bit of time to post mine.




Paul

There are three kinds of people in this world; those that can count, and those that can't.

[Lexman]

Oh, this is hard. Without calling to get all my available credit limites, I will say 40K. Of course, that doesn't include my line of credit at the Credit Union. Of course, I could remortgage the cars too. I figure I am good for 50K anyway. Hmmm, mortgage the house too, and I am up to say 150! Let's go shopping, lol.

Lex

[Kevin P]

Hmmm...let's see here... Mastercard, $500 limit... I could get a DVD player, or a cheap 27" TV with that. :B

I guess if I were going to do an entire HT on credit (a foolish thing to do IMHO) I would have to refinance my house, take out an equity loan, or apply for another credit card.

My current HT was purchased entirely with cash (check/debit card). I only use my Credit card to buy DVDs.

KJP




Official Computer Geek and Techno-Wiz Guru of HTGuide - Visit Tower of Power
My HT Site

[ThomasW]

My AMEX card has no limit. When you're have had one of their cards for decades, it's unlimited. But I suppose if I tried to buy a Ferrari it might bounce :B




theAudioWorx
Klone-Audio

[Kevin P]

My AMEX card has no limit.

But you have to pay it off in full when the bill comes...

KJP




Official Computer Geek and Techno-Wiz Guru of HTGuide - Visit Tower of Power
My HT Site

[KennyG]

I could buy my FPTV, screen, ceiling mount, one 8008X3 amp, one more center channel and my rears...but I'm not going to let myself get sucked in! Just used it to buy Bridge on the River Kwai and Fantasia...that's as far as I go!

[P-Dub]

Well, I've got about 30K worth on credit cards. I figure that should be enough for some B&W 802's and a Pioneer Pro710 and a DV-37.

Looks like Lex has got me beat. A remortgage on the house don't count, although an equity line of credit on the house is okay. Or if you can convice the banker that it's a home improvement loan, that's okay too.

AMEX cards don't count cause you gotta pay them back in a month. What's the fun in that?




Paul

There are three kinds of people in this world; those that can count, and those that can't.

[Lexman]

Boy, that Kevin is a real kill joy on carrying balances, ey? lol.

Lex

[Kevin P]

Boy, that Kevin is a real kill joy on carrying balances, ey? lol.

My wife won't let me get into debt again. In 1996 I had over $10K in CC debt plus a car loan, which was rapidly getting out of hand, especially since my income was quite a bit less than it is now. The minimum payment, and the interest charges, were both over $150 monthly, and I was paying close to $1000/month to try to get the balance down, but that doesn't work too well when I'm still putting stuff ON the card. I ended up cutting up all my credit cards in 1996 and started paying down the balances, and got a debit card for situations where plastic is handy (such as buying gas, etc.). Then, as we were planning our wedding and honeymoon in 1997, I came to discover that the car rental companies require a credit card in order to rent a car. So here I was, now I need one of those evil credit cards again, so I came up with the idea of getting one with a $500 limit so I can't get in over my head. She agreed to that, and I applied for one at my local bank (who actually uses MBNA for their cards). When I got the card, I promptly called them and had the limit reduced to $500, where it has stayed ever since (except one time when I went over, oops and they raised it to $1000, but I called them and had it lowered again after I paid it off).

My CC debt was fully paid off at the end of 1997, my car loan was paid off in August 1999 (I had to buy a car in '97, another long story!), and now I'm debt free except for a mortgage (which I don't really count as "debt that must get paid as fast as possible" since I got a great rate and the interest is tax deductible).

What's interesting, and here's where my HT comes in, is I hadn't purchased a audio or HT component from 1993 until the end of 1998. Every piece I bought from 1998 on has been with cash. My wife wouldn't let me do it any other way. There's nothing like buying a new toy knowing it's mine. It's all paid for, no bills to dampen the enjoyment of getting a new toy.

KJP




Official Computer Geek and Techno-Wiz Guru of HTGuide - Visit Tower of Power
My HT Site

[P-Dub]

I'm surprised the MBNA didn't give you $10K in credit. I actually bought my equip with the store's don't pay for 6 month policy. And before the 6 months were up, I paid it all off in full. Mind you, during those months I had the cash sitting in a investment savings account.

I tell you those minimum payments and carring a balance is very tempting. Crap, sometimes I just want to go hog wild, but I'm pretty good at resiting. Take the Pronto deal. I could put it on the card, but I know I don't have the funds to pay for it and there's no way I want to carry a balance just so I can have a cool remote.

You lucky guys being able to deduct interest on your mortgage. I hear its only applicable to the first $100k?

Actually, regardless of how great a rate you have, the fast you pay off your mortgage the less you pay out in interest.




Paul

There are three kinds of people in this world; those that can count, and those that can't.

[Kevin P]

I'm surprised the MBNA didn't give you $10K in credit.

My income, at best, barely qualifies me for $10K. The $500 limit was set by me, not MBNA anyway. I called them.

You lucky guys being able to deduct interest on your mortgage. I hear its only applicable to the first $100k?

$100K of interest? Never heard of that one. My mortgage is a 15 year so I won't be paying $100k in interest anyway.

Actually, regardless of how great a rate you have, the fast you pay off your mortgage the less you pay out in interest.

Technically that's true, but if you take a 6.25% rate mortgage, take the tax deduction into account (which makes the effective rate under 5%), I could take the money that could go into extra payments and invest it at a higher rate and come out ahead.

KJP




Official Computer Geek and Techno-Wiz Guru of HTGuide - Visit Tower of Power
My HT Site

[Lexman]

Credit Card Forum is no more. Take it to A/V Chalet after these topics roll off. But feel free to explore the existing topics here. It's just the subject heading doesn't match now.

Thought we would try something different.

Lex