Computer paid for by Credit Card

Hamman · 07-01-2008, 11:12 PM

Ok, here's the thing (I also post this in the Computers forum)
I'm going to be starting college in the fall and in need of a laptop. I've decided on buy a macbook pro along with the ipod touch and printer deal. I have some extra money from scholarships and will be reimbursed $2500 for my purchases. However, is it more beneficial for me to put it on a credit card and pay off the amount monthly (within the time allowed for the 0% introductory rate of course)?

I know it could be difficult, considering that I'm still only 17 (I'll be 18 in a month), to apply for a credit card with a $3000 credit line. However, I want to start building my credit history and the purchase is pretty sizable. I just want to prove that I can maintain monthly payments. I will have the $3000 in my bank account and will use it to pay each month's bill. I'm very responsible with money so I will definitely not be double dipping with the money in my account.

Does anyone have any suggestions as to what company I should apply to to get such a large credit line for a college student? Does our academic record get considered when applying for a card (like when buying car insurance)? If I cannot get a large enough credit line, is it still possible to max out my card and then pay the rest with my parents' credit card?

nysmile · 07-01-2008, 11:24 PM

I think you have to be 18 to get a credit card. Credit cards for students usually start with a $500 maximum credit line. If used responsibly and the bill gets paid on time, after a few months they will increase the credit limit a little at a time. I can't think of any credit card company that will give a $3000 credit line to a student. You should pay for your computer in full. If and when you get a credit card, you can use it to pay for your textbooks. When the bill comes, pay it in FULL. The best way to build up your credit is by paying each credit card bill in FULL. Do not pay the minimum.

Hamman · 07-01-2008, 11:27 PM

I see, yeah, that's what I wanted to know
I didn't know whether paying equal (but not full) payments over 6 months would be of any benefit to my credit. Sure, they see me paying stuff but I guess I'm not paying the full bill each time.

emeraldkity4 · 07-02-2008, 01:31 AM

you can buy your laptop through the apple education store & have a credit agreement through apple- that will get you a discount plus help build your credit.
Plus they will throw in a free ipod
The Apple Store (U.S.) - Back to School

middsmith · 07-02-2008, 02:52 AM

If possible, get an American Express card or a Visa Signature card. These cards double the warranty for free. And pay in full.

patsmom · 07-02-2008, 06:01 AM

Even if you could get a credit card at 17, to pay for a computer in monthly installments like you wanted to do would cost you interest each month on the unpaid balance so you would end up paying more than what the computer actually costs.

kenf1234 · 07-02-2008, 09:16 AM

If you want to build up your credit, if you got a credit card, and just used it to buy things like groceries or incidentals or whatever, and paid that small amount off every month, that will accomplish that goal.

If you had a $3,000 credit limit and a $2,500 balance on that credit limit, and that was your only credit card, that would actually cause you to have a relatively low credit score, since your debt-to-limit ratio was so high.

CollectivSynergy · 07-02-2008, 10:12 AM

Most student accounts have credit limits of less than $1,000.

middsmith, how in the world is a student going to get an AmEx or Visa Signature card?

ellemenope · 07-02-2008, 10:26 AM

Agree with others that it'll be a miracle to get a credit card in your own name for $3000 right out of the chute (without Mom and Dad backing you up). If you want to build up credit, do as kenf1234 suggests--small charges, pay them off every month.

Once you have a credit card, you will be inundated with offers for new credit cards. Be very careful with credit cards--credit card debt has been the personal Waterloo for many an American, and not just students.

emeraldkity4 · 07-02-2008, 11:02 AM

please note my link to the apple education store. ( your college may be a certified seller)
Low interest ( you can also qualify for BillMeLater & get 6 months or so free financiing), buying through the appleeducation store knocks a couple hundred off the price of most computers, and you get a rebate to cover a new ipod.
( I also have purchased factory refurbished laptops for years, which also knocks at least several hundred off the price, generally you don't need the very fastest, newest thing- these computers are still covered by warranty and have been throughly checked out- still with a laptop ALWAYS buy the extended warranty/Applecare. Laptops receive much more wear and tear- & many things have a potential for problems- applecare is well worth it)

This is how my daughter bought her computer for college, she didn't even have her own checking account before college & her only job was workstudy, but it wasn't a problem to buy it this way.
( it also didn't open up the can of worms a credit card might)

ellenenope
I am amazed at how many offers my younger daughter has received, just because she graduated from high school.
I just toss them.

Chedva · 07-02-2008, 11:09 AM

emeraldkity, please make sure that you do more than "just toss them." With identity theft being the fastest growing crime, particularly among college students, please shred them so no one else can fill them out and get credit in her name without your or her knowledge.

emeraldkity4 · 07-02-2008, 11:16 AM

I have been ripping them in half, but I only have been shredding our documents that have more info on them- thanks for the tip

middsmith · 07-02-2008, 12:38 PM

Quote:

Most student accounts have credit limits of less than $1,000.

middsmith, how in the world is a student going to get an AmEx or Visa Signature card?

I applied for a credit card when I was 16 and for some reason, it was approved. I've been using my credit card for all of our household expenses. I now have an Amex blue cash and a Chase Freedom that was just upgraded to Visa Signature. Both have credit line significantly higher than 3000.

Hamman · 07-02-2008, 01:53 PM

kk, thanks for the tips guys
I guess I'll just forget about paying it with a credit card

marite · 07-02-2008, 02:22 PM

hamman:

Aren't you going to be attending Harvard? Would it be more beneficial to buy your laptop through Harvard? You might consider waiting until August to buy it when you are 18.
It is also a good idea to have a credit card for purchases other than laptops (airfares for instance, or books).