Financing Issue(s) getting financed?

[ovrszd]

Not trying to be a butt..but I think you asked a "loaded question" here. Kubota, in my opinion, was well within their rights to require whatever they felt most comfortable with on the loan. You can always get financing elsewhere...

Or pay cash.

 

[GAFarmer2]

Or pay cash.

That too!

 

[Steppenwolfe]

Actually you just proved ovrszd's point. The system has kept you in debt (every time you use your credit card you are borrowing money, which literally makes you "in debt"). Also you have to try to trick the system just to stay in the game. Like ovrszd says, it's soooo stupid :thumbdown:

Not so fast... I use two credit cards for everything; job materials, travel, motels, fuel, buy a tractor, attachments, whatever... everything. Wifey pays them off every due date. Last year alone I got just over $4000 back in " points ", and our credit score is an 829. Gotta be smart about it. To me they are tools, and not for borrowing money.

 

[ovrszd]

Not so fast... I use two credit cards for everything; job materials, travel, motels, fuel, buy a tractor, attachments, whatever... everything. Wifey pays them off every due date. Last year alone I got just over $4000 back in " points ", and our credit score is an 829. Gotta be smart about it. To me they are tools, and not for borrowing money.

See post #39.

I'll add this. If you everything off, or basically pay cash, why do you care what your score is? I couldn't tell you within 100 points mine is. I checked it once back when this scam started and haven't looked again.

 

[smstonypoint]

See post #39.

I'll add this. If you everything off, or basically pay cash, why do you care what your score is? I couldn't tell you within 100 points mine is. I checked it once back when this scam started and haven't looked again.

For one thing, it affects your insurance premiums: https://www.forbes.com/sites/robertharrow/2016/04/25/is-your-credit-score-affecting-your-insurance-premiums/#75043b3420df.

Steve

 

[cford36]

See post #39.

I'll add this. If you everything off, or basically pay cash, why do you care what your score is? I couldn't tell you within 100 points mine is. I checked it once back when this scam started and haven't looked again.

Because other companies, including insurance companies, use your credit score to determine your rate. Like someone else said they pay cash for everything but have high insurance rates because they have no credit history and resulting poor credit score.

 

[smstonypoint]

Not so fast... I use two credit cards for everything; job materials, travel, motels, fuel, buy a tractor, attachments, whatever... everything. Wifey pays them off every due date. Last year alone I got just over $4000 back in " points ", and our credit score is an 829. Gotta be smart about it. To me they are tools, and not for borrowing money.

At least two additional advantages:

1. I assume that one of your cards is reserved for your business. The associated expense records for the business card would make life easier for your bookkeeper/accountant.

2. Credit cards offer advantages over debit cards, checks, or cash if you want to dispute a charge.

Steve

 

[Steppenwolfe]

At least two additional advantages:

1. I assume that one of your cards is reserved for your business. The associated expense records for the business card would make life easier for your bookkeeper/accountant.

2. Credit cards offer advantages over debit cards, checks, or cash if you want to dispute a charge.

Steve

Yes, you are correct. The debit card is only used to get cash out of the atm, nothing more.

 

[Steppenwolfe]

See post #39.

I'll add this. If you everything off, or basically pay cash, why do you care what your score is? I couldn't tell you within 100 points mine is. I checked it once back when this scam started and haven't looked again.

Well, you are wrong in thinking this is a scam. I made 1500 bucks last fall financing a new f150. Could've paid cash, but Ford offered an extra 1500 off for using FMC. Paid loan off at 90 days... And, being a business the fico score determines my insurance rates, business licensing acceptance, and many other things.

 

[txdon]

At least two additional advantages:

1. I assume that one of your cards is reserved for your business. The associated expense records for the business card would make life easier for your bookkeeper/accountant.

2. Credit cards offer advantages over debit cards, checks, or cash if you want to dispute a charge.

Steve

3. Some credit cards (Discover) will add additional year of warranty coverage on eligible items, and if you purchase you plane ticket $500,000.00 accident insurance, and $25,000 coverage to a rental car. Also If your new purchase is damaged or stolen within 90 days coverage to $500. Also some cover the difference if you find a better price
If you see a lower advertised sale price after you've already bought an item, they will refund the difference on eligible, identical items within 90 days of your purchase, up to $500 per item and $2,500 per year. Also some will provide a refund if the store won't accept your return
If you're not satisfied with your purchase, we can help you get your money back—up to $500 on eligible items, within 90 days of purchase, for up to $2,500 per year.

 

[smstonypoint]

3. Some credit cards (Discover) will add additional year of warranty coverage on eligible items, and if you purchase you plane ticket $500,000.00 accident insurance, and $25,000 coverage to a rental car. Also If your new purchase is damaged or stolen within 90 days coverage to $500. Also some cover the difference if you find a better price
If you see a lower advertised sale price after you've already bought an item, they will refund the difference on eligible, identical items within 90 days of your purchase, up to $500 per item and $2,500 per year. Also some will provide a refund if the store won't accept your return
If you're not satisfied with your purchase, we can help you get your money back—up to $500 on eligible items, within 90 days of purchase, for up to $2,500 per year.

Can you even rent anything (e.g.; a car, a skid steer, a carpet cleaner, etc.) these days without a credit card?

Steve

 

[mile9c1]

Am I the only one that thinks this is a head-shaking moment?

I think you are correct but in the vast majority of cases it's not an intelligent person making the decision, it's a computer or set of general guidelines.

 

[mile9c1]

Can you even rent anything (e.g.; a car, a skid steer, a carpet cleaner, etc.) these days without a credit card?

Steve

I haven't had a credit card in 5 years and I have no complaints. I can run my debit card like a credit card (companies may put a temporary hold on the cash in your bank account if they have to, not a big deal). Also if someone won't rent to me because I have no credit card then I will take my business elsewhere.

I know I pay more in insurance now, and I lose a small amount of cash back, but honestly I'm way better off financially now than anytime I had a card. Coincidence? Maybe. Maybe I just spend less now? Dave Ramsey quotes studies that show people spend 15% more when using a card. I won't argue his data but either way it doesn't take many extra purchases to cancel out that 2% cash back. Yes I know everyone says they are disciplined and only buy the minimum, etc., etc. I was disciplined, and I never paid a dime of interest in 15 years. I'm better off now.

Also, I'd like to point out that that 2% cash back comes from somewhere and it's from people like me who get charged higher prices so that companies can pay the credit card companies. Some companies offer a cash discount but most don't. So please stop using your cards everyone, you won't miss them and you'll maybe someday get an automatic 3% cash back that you never had to spend in the first place

 

[M5farms]

the retailers are paying approx. 2.5% to accept the card . therefore we increase our prices 3 to 4% to offset the cost. SO in reality if your doing a cash back or miles card you are paying for that reward in increase goods prices . I offer a 3% discount if you pay with cash so which is the better deal ?????

 

[silvertramp]

(Not necessarily. I have been 100% debt free for years. No mortgage, no vehicle loans, nuthin'. I have a high credit limit, use only a small percentage of it, and pay in full every month. My credit score is always over 800.)

((Actually you just proved ovrszd's point. The system has kept you in debt (every time you use your credit card you are borrowing money, which literally makes you "in debt"). Also you have to try to trick the system just to stay in the game. Like ovrszd says, it's soooo stupid ))

{Just how has the system kept me in debt? I pay 0.00% interest and also get 1.5% cash back on my purchases. I use cards for gasoline, car repairs, medical bills, etc. Stuff that I have to buy. I don't trick the system at all. It's their stinkin' system after all. I just use it to my advantage. Long ago, I was cash only with limited resources. Twice I wanted to buy trucks and the banks balked on a loan even though I had the full purchase price in THEIR OWN BANK.
I decided that I wouldn't be treated like a second class citizen ever again. An 800+ credit score puts me in the driver's seat when negotiating on a vehicle. They have to work with me, or I walk. It sure does help.}

 

[Slowpoke Slim]

Long ago, I was cash only with limited resources. Twice I wanted to buy trucks and the banks balked on a loan even though I had the full purchase price in THEIR OWN BANK.
I decided that I wouldn't be treated like a second class citizen ever again. An 800+ credit score puts me in the driver's seat when negotiating on a vehicle. They have to work with me, or I walk. It sure does help.}

This. This was my situation too. I always paid cash for everything, thought that was "the way". But yeah, you get screwed every which way 'til Sunday and back by doing that. Now I use 2 cards, one is strictly business expenses, the other is strictly personal use. I keep an artificially low limit (they keep wanting to raise my limits) on both cards, and pay them off. My score has never been higher, and I can walk into any store or dealership and basically sign a paper and walk out/drive out with pretty much anything I want. Never could do that in my younger "cash only" days.

My credit score is rock solid, and my insurance premiums go down every year.

 

[LD1]

the retailers are paying approx. 2.5% to accept the card . therefore we increase our prices 3 to 4% to offset the cost. SO in reality if your doing a cash back or miles card you are paying for that reward in increase goods prices . I offer a 3% discount if you pay with cash so which is the better deal ?????

Yep. CC companies have to make money some how.

But most places dont offer a cash discount. So even if you are paying with cash, you are still paying more.

If the cash discount exceeds the incentive amount I get from the CC company, I pay cash. IF not, I pay CC.

Bought my dump trailer with CC. $6000 purchase. Cash discount was $50. Credit card perk was 2% ($120) So I paid with the card, let the retailer pay their 3% fee ($180), of which the CC company keeps the $60 and gives me $120 back. So In reality:
I paid $5880
CC company profited $60
Retailer got $5820

Now wouldnt it have just been easier for me and the retailer to split that $60 profit the CC company made? And sell me the trailer for $5850? But no, they took a hard stance on $50 off is the best we can do for cash. If All retailers offered a ~2% cash discount, I wouldnt have a use for my card.

 

[zmountaineer]

I loved my credit card when I built my house. I had all the building funds in escrow. I would put every purchase for materials on a credit card then submit it to the bank for reimbursement. Having no limit on the card was essential. I got so much cash back after the house was done that I could take a nice vacation.

 

[CobyRupert]

Most retailers offer no cash discount. But it doesn't hurt to ask.
Credit cards have some advantage:
1) The 1%, 2%, sometime 3% cash back.
2) They provide a 30, or even 45 day free loan if you pay full balance on last due day.

I've always wanted to get a lawyer to check out my plan (reverse credit card scam) to see if this is possible: Get a high interest credit card were "interest fees are 20% API on all outstanding balances", and then carry a negative balance (i.e. credit) The interest due would also happen to be a negative number (i.e. a credit).

I've never found any language, or exceptions, to all the contract language about fees and interest, just because the balance is a negative number. It would seem to me if I have a debt of negative $100,000 (i.e. credit), "by contract" I owe the credit card company (say) -$5000 in interest. Eureka: free money! It's right there in black and white. You're welcome!

 

[smstonypoint]

I've always wanted to get a lawyer to check out my plan (reverse credit card scam) to see if this is possible: Get a high interest credit card were "interest fees are 20% API on all outstanding balances", and then carry a negative balance (i.e. credit) The interest due would also happen to be a negative number (i.e. a credit).

I've never found any language, or exceptions, to all the contract language about fees and interest, just because the balance is a negative number. It would seem to me if I have a debt of negative $100,000 (i.e. credit), "by contract" I owe the credit card company (say) -$5000 in interest. Eureka: free money! It's right there in black and white. You're welcome!

If the fine print didn't already have language ruling out that possibility, it would have been changed immediately after someone tried to exploit the "loophole."

This reminds me of an example of what can pass for humor among economists.

An accountant and economist are out for a walk.

The accountant: Hey, there's a $20 bill on the sidewalk.
The economist: That can't be, someone would have already picked it up.:rotfl:

Steve