Specialized credit card / financing- Mtbr.com
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  1. #1
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    Specialized credit card / financing

    Wanted to see if anyone out there has financed a bike? I went to my LBS the other day and they told me they have two options of financing. One of them actually sounded pretty good where you could pay off the bike in 12 months same as cash. They said they went through Specialized and there credit card. Does anyone know if the difficulty of qualifying? Of course the guy helping me said if isnt that hard to qualify? Just curious????

  2. #2
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    Took 2-3 minutes for me to qualify for a $4500 limit card, and I took advantage of the 12/mo zero finance charges. Seemed to work fine...

    mudhen
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  3. #3
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    Quote Originally Posted by mudhen View Post
    Took 2-3 minutes for me to qualify for a $4500 limit card, and I took advantage of the 12/mo zero finance charges. Seemed to work fine...

    mudhen
    Yeah my only thing is I dont have the best credit. Again, I told the guy that and he told me more often than not people qualify. part of me wants to go do it but the other part doesnt want to go through the let down.

  4. #4
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    I used it.
    You do have to make a monthly payment of some amount.
    As long as it is paid of in the 12 month period you are all set.

  5. #5
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    If your credit isn't that great...why in the world are you borrowing money to buy a bike?
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  6. #6
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    Good credit got me $5500 credit in less than 15 minutes on it, paid it off same as cash and made payments every month to do so... My bill came up less than $2000, nowhere near the limit.

    Haven't used it since, high interest rate if you don't pay it off.

    Meh... It was just convenient at the time.

  7. #7
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    If your credit isn't that great...why in the world are you borrowing money to buy a bike?
    Amen.
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  8. #8
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    Quote Originally Posted by TiGeo View Post
    If your credit isn't that great...why in the world are you borrowing money to buy a bike?
    Exactly.

    Probably should check craigslist instead of buying a bike you cannot afford.

  9. #9
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    Good advice from this forum. Don't finance a bike you can't afford. Buy a used one or a demo.

    My LBS is always selling used bikes from team riders, maybe go that route.

  10. #10
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    Quote Originally Posted by md247 View Post
    Good advice from this forum. Don't finance a bike you can't afford. Buy a used one or a demo.

    My LBS is always selling used bikes from team riders, maybe go that route.

    To an extent. With a Same-as-Cash type card, it's a viable option for purchasing a bike.

    People do it all the time for furniture, tools, TV's. mattresses, yadda yadda yadda. Why is it not OK to use that same feature for a bike? They're expensive these days.

    I can see saving up 1/2 - 3/4's of the cost, in cash... and then using the card for the remainder. However, putting a $6K plus bike ALL on a card is definitely not smart.

    If you do the math on exactly how much you'd have to pay monthly, to not get hit with the interest, and you can plainly afford that without it causing a hardship, it's not that bad of an idea.

    Hell, I've done so to purchase my wife's wedding ring, as well as our bedroom set(s). Paid for both WELL before the time period was up, and wound up paying ZERO dollars in interest.

    Am i being damned by this forum for doing so?
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  11. #11
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    No. But you're one of the few people who actually pay off their credit card each month.

    What happens if the OP buys his $6k bike and puts $1000 down, then two weeks later he backs his car over it (or something along the lines of it getting broken by his error). Then he is making payments on a bike he no longer has. Doesn't get much more depressing than that.

  12. #12
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    It's just way to easy to get in over your head with toys. This is the voice of expeirience (sp?) here. I've got two bikes on my card right now, plus parts, plus a trip to snow shoe to ride one......it gets out of hand quick.

    Wait three months and see what you can save. If you can get a quarter of what the bike costs in three months go for it. Other wise, what you can't pay off will be around 25%+ on that card. And that will sky rocket each month after that.
    "I'm the fastest of the slow guys"

  13. #13
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    I'm with the others here. If you feel confident that you can pay the thing off in the "same as cash" period, then be patient and just save the money until you can buy it outright. If you're bikeless and need a bike in the meantime, pick up a good bike on Craigslist to ride, then sell it when it's time to buy your new dream bike. As you will have bought it used and only use it yourself for a short while, you probably won't take a loss on it, essentially you'll have a low cost or "free" rental while you save. Another bonus? When you do get your new bike, you'll likely have a newer model year, whereas by the time you paid the financing off you're on a year old bike. Or you may be able to pick the one you're eyeing up on model year end clearance.

    It's more work and takes discipline not to pull the trigger on the shiny new bike when financing puts it oh so close to your reach, but at the end of the day it's more rewarding to not have that liability, and you will not run the risk of getting caught out and having to pay a huge interest rate on a bike...

  14. #14
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    I love the "interest-free" specials and have bought a number of things that way, but it takes great discipline. I bought a Pella french door, Sony TV (Best Buy) and just purchased an Ariens snow blower via Home Depot's credit card (18 months interest-free). Just divide the total you owe by the number of free months, and that's the payment you should be making every single month. It helps to round up to pay sooner so that you're not short with the final payment, causing the bank to whack you with the full-boat interest that you would have paid if it were not interest-free.

    If you can't make that minimum payment, don't buy the item. It's just not worth wrecking/hurting your credit.
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  15. #15
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    Also, if you can look into cards that give decent rewards. I've eaten several times for free thanks to CC points. Also even had a couple of "free" payments made due to points. You have to shop for a good card. If specialized has something that will work for stuff other than just "company store" type things I might try it myself next year.
    "I'm the fastest of the slow guys"

  16. #16
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    I was reckless with credit cards in my 20s... ended up with enough debt to buy a few Carbon Demos

    I'm debt free now but still have bad credit...which sucks as I make a decent slice.

    My point being? Cut the guy some slack... his life, his money

  17. #17
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    He asked if anyone has financed a bike. This is going to get him quite a few responses and many of those will be advice not to go down that route.

    This is part of the problem of how the U.S. got into such a problem with it's money and the people borrowing it. Taking loans out on houses they cannot afford. I know this is on a much smaller scale. But judging by the OP, s/he does not have a big savings, or else he would just buy the bike outright. So what happens if he finances this bike and loses his job the next week? Then he is screwed if he cannot find another job.

    If someone posts on this forum, they will get a wide array of responses. Some of those may even go past the basic question that was originally asked, and provide the OP with some advice that will save him/her in the future.

  18. #18
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    I did the same thing to buy my bike. It's 0 percent for 6 months then after that it is gangster high interest rate. I paid mine off as soon as I got my work bonus. If you can pay it off in six months than good, but after that its crazy hih interest.

  19. #19
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    Oh, and I canceled the card right after I paid it off. Been getting loans and paying them off since I was 17 years old.If you do it wisely it can build your credit. If you do it the wrong way it can ruin your life!
    And I agree, let's not harp on this guy or judge him. His life, his money. He was just curious about the card.

  20. #20
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    Quote Originally Posted by BigHit-Maniac View Post
    To an extent. With a Same-as-Cash type card, it's a viable option for purchasing a bike.

    People do it all the time for furniture, tools, TV's. mattresses, yadda yadda yadda. Why is it not OK to use that same feature for a bike? They're expensive these days.
    ...because the OP admitted already to having bad credit. He didn't get bad credit by paying stuff off on time.

  21. #21
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    Make no mistake, I have no issue borrowing money. I have had a few car loans over my life and certainly have a mortgage now. I use credit cards sometimes and don't have any issues with them, they have low rates (6-8%) and I typically pay them off each month. I had a few "same as cash" store cards when I was younger, just like the one the OP is asking about, for a few things (Best Buy, furniture, engagement ring). I paid them in the allotted time and cancelled them right after - so yes, I won...I borrowed money for 12 mos. and didn't pay any interest. The hassle of doing this and risk of making a mistake just isn't worth it to me now. Its really hard to cancel them...they fight you tooth and nail on the phone. I would just assume use one of my other cards, pay a little of interest for a few months, and know that I don't have to worry about cancelling it, forgetting something, etc. Remember, each card you open increases your total avail. credit and shows a new credit account opened on your credit report; this can help sometimes (decrease your debt/avail credit ratio if you don't use all the avail. credit) but can also hurt your credit score b/c you opening a new account and now have more you owe. To the OP, do you want, just keep in mind that "same as cash" store cards are there for the third-party credit card company to make money..otherwise they wouldn't offer them. They make their money from folks that get in a pinch and don't pay the whole thing off in time and get raped with a 20% interest rate.
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  22. #22
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    I thought the interest rate was more like 29%? Anyway, I called in to their customer service line to pay mine off and they were gonna charge me $10 to talk to a CSR. Had to do one of those painful automated transactions for $3000. Took me 20 minutes to get through all the menus. Luckily I paid it off and was able to close the card w/o being charged the $10 fee.

  23. #23
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    Well, maybe just like in my case due to a divorce, my credit isn't that great but I make good money and rather ride a bike to work instead of taking a bus. Getting to work will help me get work, unlike some fortunate ppl like your self.

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