Finance a Macbook, bad idea?

porsche4life · porsche4life's Garage

My current laptop is dying quickly. I would really like to get a macbook for my next one but only have about $600 right now. I was looking and I can apply for a Barclay Card(Visa), and get 0% for 1year. I currently have no credit b/c I have never had payments on anything. Thinking I could pay off the laptop in a few months and boost my credit a little bit. Anyone see a reason why I shouldn't do this?

http://store.apple.com/us-hed/instant_credit?mco=MTM3NDczMDk

masraum · 12-25-2010, 11:35 PM

I think you'd either be better off saving up until you can pay cash, or buy a laptop and save up for the MacBook down the road. What you've described is exactly why the world is in the financial mess that it's in. There is no good reason to use credit to buy a laptop.

porsche4life · porsche4life's Garage

Which is one reason I am having to think it over. I've always payed cash for everything. Wouldn't hurt me to never finance, but I realize I need to build some credit at some point.

I know the macbook is a bit much, but I've been fiddling with video editing and I really prefer doing that on a mac. Plus this laptop should last me the rest of school.

Steve, respectfully, what I am proposing is not what is wrong with America. People buying things they can't afford and not making the payments is what is wrong with America....

Embraer · Embraer's Garage

just from experience, financing anything while in college isnt the best idea. i see where you're coming from, and you seem to be responsible.

computers just seem like a bad thing to finance, because of the constant changing technology. i think computer purchases should be outright, because the day you buy it, something new will soon be along to make your purchase obsolete. it stinks when you're making payments on something and you know it's disposable (which all laptops are to some degree).

my rule of thumb is that if i can't afford it, i really don't need it that bad. i wish i would have learned that earlier in college...i was the quintessential responsible kid, but one purchase led to another, and before i knew it, it took me a couple of years to finally get all of my finances in order. during that time, it sucked....never feeling good about buying something, knowing that there was a credit card bill waiting. (i paid 13K worth of credit cards off in about 14 months...but it was REALLY hard. i didnt buy myself anything...every extra cent went to paying off debt)

if you know with 100% certainty that you would be able to pay it off within a few months, then consider it.

slodave · slodave's Garage

It also stinks to buy a laptop outright, then find out the next gen has been released before you receive yours. It's going to happen one way or the other with tech.

porsche4life · porsche4life's Garage

I'm not too worried about the obsolescene thing. I will be content with this for many years. I really have no qualms with my dell other than the fact that its starting to show its 3yrs of heavy use and has stopped charging the battery amongst other things. I will most likely cancel the card after it is paid down. Really don't have a need for a card, all my fuel goes on a card that the bill goes to my folks.

Embraer · Embraer's Garage

i wouldn't cancel the card. if you're going to get one, then use it wisely. canceling it will do nothing to help you build credit, in fact, it will hurt it. if you want to build credit, just keep it and BE SURE to be smart with it.

slodave · slodave's Garage

From what I have learned about Sidney, I think this is a good idea for him. The world works on credit. He does need to build it, now's a good a time as ever. As long as there are no drunk, midnight ebay buys, he'll be fine.

porsche4life · porsche4life's Garage

Guys, keep in mind that with my chosen profession there is a good chance I could be trying to finance a large sum of money to start my own business in the future. I've got to start building credit sometime.

Porsche-O-Phile · Porsche-O-Phile's Garage

With $600 cash you should be able to either fix whatever is going wrong on yours or get a decent used one.

A finance guy in particular ought to know that one ought to only finance good debt - not bad debt (things that depreciate or lose value over time).

Also if you're smart you'll figure out a way to make a computer purchase be a business expense / tax write off (hint, hint)

slodave · slodave's Garage

You will need other backers to get $ from lenders to start a biz, no doubt there, but having some credit will help.

porsche4life · porsche4life's Garage

Obviously dave.

Jeff, spending much money on my laptop is throwing good money after bad. Its got a small HD and not much ram. I would buy used, but I am leery of used computers, its hard to know what you are going to get. So much of what I do depends on a computer that I need a good one that won't let me down.

onewhippedpuppy · 12-26-2010, 02:25 AM

If you don't have the cash you can't afford it, "building credit" is just a way to justify buying what you want but can't afford. If you really want to build credit yet still be responsible, wait until you save up the cash, then put it on the card and pay it off that month. Making payments is a bad habit to start, especially when it's a credit card. The only thing you should make payments on is your house, everything else can be saved for.

By the way, I didn't even have a credit card until I got married and never carried a balance. I had excellent credit when I bought my first house. I always had utilities in my name while renting as a single guy, I assume that helped.

KFC911 · 12-26-2010, 03:17 AM

Quote:

Originally Posted by onewhippedpuppy

If you don't have the cash you can't afford it, "building credit" is just a way to justify buying what you want but can't afford. If you really want to build credit yet still be responsible, wait until you save up the cash, then put it on the card and pay it off that month. Making payments is a bad habit to start, especially when it's a credit card. The only thing you should make payments on is your house, everything else can be saved for.

By the way, I didn't even have a credit card until I got married and never carried a balance. I had excellent credit when I bought my first house. I always had utilities in my name while renting as a single guy, I assume that helped.

PAY ATTENTION Sidney, you're a smart guy...don't fall for all this credit rationalization bs, as you wouldn't be the first. "Consumer Credit is the opiate of the masses" imo, and more than a few are attempting to offer sound advice. The fact that "you" are even considering it...just don't!

onewhippedpuppy · 12-26-2010, 04:16 AM

By the way, $600 will buy you a laptop with more than enough power to do basic video editing. The MacBook is cool but not required. I bought my wife a very nice Sony Vaio a few months ago for $550. Carefully evaluate want vs need, I bet you'll find that you don't need the $1600 MacBook.

hcariss · hcariss's Garage

Check out the Apple site. There is a section of 'Re Furbished' laptops & towers usually at a good discount. These are often high end machines which will have more than enough computing power for what you describe. Usually re furbs are the machines that companies who do high end editing & GFX, web work etc use for short periods and who have to stay at the tech 'limit'. Also if you don't need a laptop a mac desktop will be more than adequate to run Final Cut.
Re furbs come with the standard year warranty every mac comes with.
As a seasoned mac user would recommend you buy an extended warranty for three years (just in case) also available with the re furbished machines

wdfifteen · wdfifteen's Garage

Quote:

Originally Posted by porsche4life

My current laptop is dying quickly. I would really like to get a macbook for my next one but only have about $600 right now. I was looking and I can apply for a Barclay Card(Visa), and get 0% for 1year. I currently have no credit b/c I have never had payments on anything. Thinking I could pay off the laptop in a few months and boost my credit a little bit. Anyone see a reason why I shouldn't do this?

Apple financing and rewards from Barclaycard. - Apple Store (U.S.)

It depends on why you need it. Do you need it for work? In that case, it may be a wise investment. If it's just for funsies you shouldn't go into debt for it. Backup the computer you have daily and save, save, save.

wdfifteen · wdfifteen's Garage

Quote:

Originally Posted by porsche4life

Guys, keep in mind that with my chosen profession there is a good chance I could be trying to finance a large sum of money to start my own business in the future. I've got to start building credit sometime.

If that's your goal you should put some money aside that is equal to the amount you borrow, set up automatic payments, and really do it right. You never want to get into late payment problems.

krystar · 12-26-2010, 08:13 AM

Using a credit card to build credit is the absolute worst way to go. credit card history doesn't add much at all to your credit score.

you can't instantly "build" credit. a "good" credit history started about 5 years before you even knew about credit.

widgeon13 · 12-26-2010, 08:22 AM

Check out a refurbished Mac Air, lower price and same warranty I believe.