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 Replies: 26 / Views: 2,524 |
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Pillar of the Community
United States
1840 Posts |
It would make sense for the author to hold large lines of credit due to the nature of his collection. I would assume that a flowing hair collection would cost quite a bit and be fairly hard to come by compared to other coins. By keeping a large line of credit the author doesn't have to leave large sums of money in a checking account that yeilds almost no interest. Besides, should two desired rare coins become available around the same time he would still be able to purchase them for his collection even if the actual funds were not immediately available.
Unless you aspire to collect only the rarest of coins and money is not an option, I would not worry about keeping open large lines of credit.
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Valued Member
United States
397 Posts |
I always use my American Express card to purchase coins. However I also always pay the full balance each month. I have even purchased vehicles with my Amex card. If I ever have a problem with the purchase, Amex is behind me, and will make the vendor prove it was right, or issue a credit. I also use the points earned to travel for free. (25,000 in purchases equals a free RT ticket anywhere in the US) Credit is like a car. Use it wisely, and it will serve you well. Be reckless with it, and it will kill you. Like others said. ALWAYS pay off balances each month, or the high interest will get you. MM  PS: As a little bonus, those of us that pay off each month, actually will receive LESS junk from CC companies, because they really do not want us for customers. I actually was turned down once and the lady actually said it was because I paid off balances to fast.....Crazy huh? Edited by morganman
01/03/2007 1:06 pm
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Valued Member
United States
414 Posts |
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Pillar of the Community
United States
1203 Posts |
fengk, I may be wrong, but I really don't think that John Reich was recommending the use of credit cards. As back in the 'good old days' the term 'lines of credit' only meant that you had already been approved for any ammount you could have needed to make a pruchase. So have I ever bought a coin with a credit card? NO. Have I bought coin(s) with an extended line of credit? Yes and it worked perfectly and safely. All it took was a telephone call and I walked out with the coin(s) that I had wanted. Simple as that. |
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Moderator
 United States
23522 Posts |
quote:
Originally posted by Jim Biggs
Buying on credit for ownership is folly. Using credit to purchase inventory with a known distribution channel and reasonable gross margin is free enterprise and what America was built on. Knowing the difference is what separates credit card debit from capitalism.
Jim
Wonderfully spoken. However, I'm one of those who buys virtually everything with a credit card. Heck, I haven't had $100 at once in my wallet in 10 years. That doesn't mean I allow the balance to sit there, though. |
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New Member
United States
40 Posts |
Excuse me while I catch up on old posts...
I don't see anything wrong with buying coins, bullion or anything with a credit card... (Get air miles, "free" stuff, cash back, what ever...).
I do see a problem with carrying a balance and paying interest.
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Pillar of the Community
United States
1454 Posts |
Using credit cards to buy coins isn't a good idea. The finance charges alone don't make it a viable option. Unless you are just rich and can afford to pay off the balance each month then I would forget this idea. Anyway, if a person is that well off what would they need with a credit card unless you are running a business. Just my opinion.
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Valued Member
United States
270 Posts |
I love using credit cards, I use them for everything, but the trick is if the money isn't in your account and you cant afford the coin then using credit so that you can pay for it is a really bad idea.
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Valued Member
United States
256 Posts |
I have a few subscriptions with the Mint so a credit card is a must. Good thing is the totals aren't that great so I just pay it off when the bill comes around. For most of my on-line purchases I just use a debit card.
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Pillar of the Community
Australia
1360 Posts |
quote:
Originally posted by Andrew289
Coins are coins ..make sure you have money for food, shelter, clothing and utilities first. If you need to use credit for those ...don't be buying any coins on credit.
Very well said!  |
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Pillar of the Community
United States
2254 Posts |
quote:
Originally posted by Irishraider
Using credit cards to buy coins isn't a good idea. The finance charges alone don't make it a viable option. Unless you are just rich and can afford to pay off the balance each month then I would forget this idea. Anyway, if a person is that well off what would they need with a credit card unless you are running a business. Just my opinion.
Buying coins with a credit card is no different than buying anything else with a credit card. If you can't pay it off immediately, you pay interest. Plain and simple. Unfortunately this day and age requires a credit card for a lot of things. Car rentals, hotel reservations, golf course reservations, any vacation for that matter. Plus, if you have no credit, good or bad, it is very hard to "get" credit. Try buying a house with only 5% down and no credit to speak of, good or bad. it stinks, but that's the way it is. I think the cards are a wonderful thing, but I wish there was an age limit. The companies make their money off of college students and such that can't possibly pay off the bills right away. Mom and dad end up taking care of it..... Just my Two Cents. |
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Valued Member
United States
177 Posts |
I make the bulk of my coin purchases by Credit Card. I even puchase my Groceries with my credit card. But I pay the balance off when the statement arrives. I don't see any problem with using credit as long as you can pay the bill.
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Valued Member
United States
111 Posts |
I buy many of my coins with a credit CARD. It helps protect me from fraud, and I get bonus miles for the purchase. However, I pay it off right away too. I personally wouldn't consider taking any line of credit to buy coins. Perhaps if one was a seasoned and successful dealer it would be a smart move. I think for the rank and file collector it is playing with fire.
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Pillar of the Community
United States
834 Posts |
quote:
Originally posted by TreasHunt
Sure, Pittman did take a loan on his house, but, all things considered, even then he was nuts.
But his family sure did well in the bargain.
However, if you can't afford the coin, don't buy it.
Credit is not cheap.
Frank, I believe Pittman was a very wealthy man to start with so credit for him was just good business, however you are right if you can't afford it don't buy it. BRUCE. |
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Valued Member
United States
208 Posts |
I use a debit card. My dad had bought gold coins on his CC, and he pays it off at the end of the month as to not incur interest charges, so in a sense he is paying with cash.. DEbit cards are the way to go because it's the best of both worlds, but not everyone has them yet.
I see no point in buying gold on a CC that cannot be paid in full at the end of the month.
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Replies: 26 / Views: 2,524 |
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First Page
Posted 01/03/2007 1:03 pm
