I want to get the moto x but im a college student with not a lot of money in the bank and no upgrade until May and even then its on my brothers phone number. I want to do the Financing program but have read bad things about Comenity(?) Bank and how terrible they are. Albeit most if not all of these reviews weren't for the moto financing.
Anyone have a negative experience with them so far? I will be able to make every monthly payment but I've read they screw you over with false missed payments etc. Do you know if their payment system is easy? Any help is much appreciated!
- 12-04-2013, 10:47 PM #2
Hey Jebba, I am financing and a college student as well. The thing with these credit companies is that you need to make sure you follow your card activities weekly. That way, if anything comes up you can take note and try and solve it with customer service. It's about card maintenance, make your payments on time, and try and pay it off as quick as possible! Hope this helps,
- 12-05-2013, 12:42 AM #3
Dude, I'd wait until May. Avoid credit like the plague. I get the feeling that this is gonna be a device that will last a solid 2-3 years, just in the hardware department. I know May is a long time away, but by then you'll probably be able to get it for free on a 2 year contract. Free vs financing a phone with interest.
Save the payment you'd make on financing the phone and in May you'll have a phone plus at least a couple hundred bucks?
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- 12-05-2013, 01:20 AM #5
I took my Galaxy Nexus back to CM10 and it worked great after that. I was getting ready to throw it against a wall. I know it sucks having a device that won't cooperate and I remember how bad it sucked being broke in college. You could do what I started doing, sock back like $20/paycheck every 2 weeks. You'll have $520 after a year.... 1 new contract free phone a year if you want. Even if you only save half that, it's still a new phone every 2 years. And if you love tech like I do, it's worth the $20!
Food for thought at least!
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- 12-05-2013, 01:30 AM #6
- 12-05-2013, 07:38 AM #7
- 810 Posts
I don't agree you should be avoiding "credit like the plague". The only way to raise credit is to be responsible and use it. IF you can afford it and know you'll be able to pay it off before interest kicks in then imo it'll be worth it. In May this phone will be 9 ish months old? Are you rly going to want to use a 2 year contract for that?
If you should be avoiding anything like the plague......it's contracts.- Kevin Bacon is my bananas.
- 12-05-2013, 07:14 PM #8
- 12-05-2013, 10:15 PM #9
- 12-06-2013, 07:08 AM #10
- 12-06-2013, 02:21 PM #11
I don't make anything different than most other people (statistically speaking). Actually, I have below average income for the county I live in. It really just comes down to planning. I KNOW I'll need a car. So I save for one. I can save for one because I don't have a car payment. I pay it to myself. I KNOW I'll need a phone, so I save for it. I KNOW my fiance is going to want to take a road trip every few months, so I sock away some cash for gas and food. Everyone needs a new car, so they buy one and finance their eyeballs out for it. Because you "need" a new, "reliable" car. Until getting hit head on last month, I was driving 1,000+ miles a week in a 2005 Scion tC with 235,000 miles on it. It was perfectly reliable. That car was awesome. RIP. I drive a reasonable car, new enough to be reliable but not so new I'm going to lose my **** on a car payment.
Real estate is tricky, but there are lenders out there that will manually underwrite a mortgage. They will still pull your credit first, but you'll get two loan offers. The first is with your credit score, the second is the manually underwritten loan. You have to bring more to the table (like a substantial down payment: think 10% - 20%) but that's how people bought houses for freaking decades. I haven't had a credit card in over 4 years. I make less than the average income for my area. I don't eat out 5x a week and I don't buy useless crap I don't really need. It really isn't a question of income. Like I said, it's lifestyle choices. I live close to a grocery store and it's not uncommon for me to stand in line behind someone paying with EBT and then watching them get into a new car and drive off while I walk home. They need food stamps because they're forking out $500/month on a $45,000 car plus who knows what else.
Put $5/week in an envelope, wait two years, buy a new phone, rinse, repeat. I promise it's not that hard. (Sorry if that comes across as A-Holish).
- 12-06-2013, 03:25 PM #12
I think your position is admirable and wherever possible, not using credit makes a lot of sense. But your key word is "planning" and my keyword is "discipline". If someone wants to float me a no interest loan for 18 months then why not take advantage of it? You just have to be disciplined enough to make your payments every month and stay within your means.
- 12-06-2013, 07:18 PM #13
- 12-06-2013, 09:02 PM #14
- 12-06-2013, 09:03 PM #15
- 12-06-2013, 11:13 PM #16
It's not about interest, it's about payments. Payments destroy cash flow. The minimum on a credit card with a balance of $1,000 and a 0% interest rate is most likely $29. The minimum on a credit card with a balance of $1,000 and an 18% interest rate is most likely $29. Man, how tempting? A 10,000 car loan @ 0% for 60 months is $166.67/month. A 10,000 car loan @ 8% for 60 months is $202.76/month. Yeah, interest costs money, but interest free doesn't negate the necessity of having to make a payment, either way. Interest in my auto loan example is a measly $36. It's not like I'm suddenly rich because my auto loan is 0%. It doesn't solve the problem of owing someone else for something. I like to own what I buy.
The problem with financing toys, or "small crap" is that it's a hassle to me. The first time the bank doesn't process my payment like they should, or takes it out early because the due date lands on a weekend that month, or anything else annoying happens, it's a pain in the ****. It's a phone call or an office visit I shouldn't have to make over something stupid that I could have just paid cash for if I had the "discipline" to put $20/month into an envelope. Planning and discipline go hand in hand. Planning is easy, but it takes discipline to actually do it. With really great credit, you can finance a Moto X for 0%. So that's what (for easy math), $92, $46, or $31 a month depending on the term (6 months, 12 months, 18 months). Or, $20/month into an envelope because I *know* I'm gonna want a shiny new smart phone. My option is the cheapest, and it's interest free. Plus, I owned my phone for a smaller payment to myself than the guy who let's whoever does Motorola's financing own his phone until he pays it off.
I spent a little time working for Well Fargo Financial after college. These types of accounts are extremely profitable to banks because most people do not pay them off. Most people don't understand that if you miss a payment, back interest will hit for the full term of the store account. If you fail to pay the whole thing off in time, back interest will hit on the account. It was the #1 complaint our branch received every month. Some stupid shmuck that got sold some crappy, over-priced furniture failed to realize that his $1,000 bill turned into $2,800 all because the bank actually was serious about that back interest thing.
I remember one time where a customer came in with a complaint. He had purchased a few thousand dollars worth of furniture from Ashley Furniture, and like a good Wells Fargo customer, he used his shiny Wells Fargo credit card to autopay the payment every month. The problem was that his card had been skimmed, and shut off for "security" reasons a few days before his payment on the furniture was due. He didn't know, and the payment didn't go through. In fact, he didn't find out until he tried to use that card over a week later for a transaction that was declined. This caused his account to go delinquent and stacked on an insane amount of back interest. I've never seen someone more pissed. Did Wells Fargo show mercy and fix the problem? Hell no they didn't, and they lost a customer over it too. The cynic in me is tempted to believe someone at the bank flipped the switch on a "fraudulent transaction" just because the poor guy was at something like payment #50 of 60 and hadn't skipped a beat yet. Nope, can't afford to miss out on the interest for all that!
It's unnecessary gambling. Every payment that is due is transaction that is ripe with the opportunity for something stupid to go wrong. Granted, a $500 phone isn't the same thing as $10,000 in furniture. But the difference is that when life hits the fan, and it will hit the fan eventually, your payments are something that risk breaking your back because you don't have the cash to pay them. However, my cash sitting in envelopes for relatively unimportant things like cell phones and vacations have the ability to serve another purpose - like paying off an unexpected bill without disrupting cash flow or touching real, physical savings. Cash in hand is worth more than credit on a card, every single time.
- 12-06-2013, 11:23 PM #17
- 12-07-2013, 07:24 AM #18
Q10, HTC One, Nexus 7, Moto X
- 12-07-2013, 08:30 AM #19
- 12-07-2013, 08:49 AM #20
- 389 Posts
Some people don't have $400 - $600 to plop down all at once. Or maybe they do but don't want to strap themselves down.
There's nothing wrong with financing and paying $50 or $100 per month. There is something wrong if you're going to struggle with the minimum payment.
Also, some will finance until they can sell their current device to help fund their new one.
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- 12-07-2013, 08:49 AM #21
- 21 Posts
- 12-07-2013, 11:45 AM #22
You look at the numbers from the lender's perspective; I look at them from mine. There's always money going in and money going out. So far you've only addressed one side of the equation. Maybe it works for you, but I assure you your cash-only strategy would introduce a significant opportunity cost for people like me.
- 12-07-2013, 12:13 PM #23
My fiance and I are debt free. We both have been for a long time. She is currently putting herself through school without loans. After we get married I'll help put her the rest of the way through. We are not rich. I'm a private investigator and she's a nurse. Look those average incomes up. We are both above average national wide, but we aren't sitting on stacks of cash. The best we can figure our future budget, after we get married, in our first year we'll be able to save 15K-20K towards a down payment on a house depending on what her school load looks like and how much she can work. In a mere two years we'll have 30K for a down payment on a house.Why? Because we don't have payments on anything. If every month we were paying $100 on cell phones, $600 on two cars, $200 for crap charged on credit cards or whatever else people buy, we wouldn't be able to have a house.
So what do people want, crap and a credit score, or a house? We choose a house. Your FICO doesn't give you a positive rate of return on your investment.
- 12-07-2013, 12:47 PM #24
- 12-07-2013, 03:05 PM #25
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