CNET: PS3 for $99.99 (after some work)

[Sylin]

Originally Posted by Gannet

If all the applicants to this card had discipline, Chase would lose money hand over fist.

::ahem::

I'm sorry to burst anyone's bubble, and I mean no offense, but this is precisely why this IS a bad deal. Anyone who thinks they can go up against a multi-billion dollar industry and win is, regrettably, naive.

The very logic behind having credit cards proves the holder is financially undisciplined--they want instant gratification, and use the CC as a crutch, instead of doing the financially wise thing which is to save and spend CASH.

I agree that there are a few people out there who use CC's and pay them off each month. But banks wouldn't be in business if everyone did this. No, they are counting on the statistics: that people spend an average of 18% more when they use plastic, and that deals like "cash back" and "rebates" vanity CC's are there to entice you into having an emotional connection with your credit card so you won't abandon it.

I recommend reading Thomas J. Stanley's "The Millionaire Next Door" and you'll learn that by and large, the truly wealthy do NOT use credit cards, they do NOT buy brand new cars, they do NOT borrow money, they do NOT fall for financial gimmicks, period. They don't live like paupers, but they don't live flashy, "rich" lifestyles.

The people that most folks perceive as "rich" are typically leveraged up to their eyeballs (ie. they have payments). They're leading lives they cannot sustain. Did you know that if you were debt free and had $10,000 in the bank, you'd be among the Top 3% of America's wealthy?

I'd also suggest Dave Ramsey's "The Total Money Makeover", which is one of the best books on financial advice ever published.

I don't mean to preach here, and I know some of you will read this and think I'm an idiot for vilifying this "great deal". That's fine. But don't just take my word for it. Read those books. Ask your family and friends if any of them have "absolutely no payments", and imitate them.

Unfortunately, what you'll probably find is that most of your family and friends do have payments, in which case I'd highly recommend NOT taking their financial advice. Taking financial advice from broke people is like taking diet advice from fat people.

[Gannet]

Sorry, buddy, I have received literally thousands of dollars in credit card rewards from credit card companies and you know how much interest I have ever paid -- $0. If you have to avoid credit cards in case it sets off some kind of buying addiction, then the problem isn't really with credit cards, it's that you have an addictive personality. And your book is obviously wrong -- the truly wealthy have tons of personal credit lines. They got to where they were because they built up businesses using credit and they know how to manage them. Most people's net worths are in their homes and investment accounts. This is why this country is often portrayed as having a negative savings rate, because mutual funds and stocks aren't considered savings. But that doesn't necessarily mean every single person splurges all their income on rapidly depreciating assets like blu-ray discs as soon as they receive their paychecks. If you have to read books to understand basic sense personal finance, then you're probably hopeless to begin with.

Here's some expenses I have to pay for in the next month that I'll have to spend no matter what:

Business-related trip to Singapore and Shanghai, China (probably $2,000) -- I can use my personal card and reimbursed from my company
Professional exam fees -- $600-700

That pretty much is the source of free $300 right there.

[Sylin]

Originally Posted by Gannet

If you have to avoid credit cards in case it sets off some kind of buying addiction, then the problem isn't really with credit cards, it's that you have an addictive personality. And your book is obviously wrong -- the truly wealthy have tons of personal credit lines. They got to where they were because they built up businesses using credit and they know how to manage them. Most people's net worths are in their homes and investment accounts. This is why this country is often portrayed as having a negative savings rate, because mutual funds and stocks aren't considered savings. But that doesn't necessarily mean every single person splurges all their income on rapidly depreciating assets like blu-ray discs as soon as they receive their paychecks. If you have to read books to understand basic sense personal finance, then you're probably hopeless to begin with.

Yeah... you're obviously right and I'm obviously wrong. That's why tens of millions of Americans are in debt, hundreds of thousands face foreclosure in the next 18-24 months, and the GLOBAL economy is suffering on an unprecedented scale: because they're all a bunch of addicts... except you.

As I said in my original post, I don't deny there are people who have credit cards and pay them off. And if that's you, GOOD FOR YOU. But you are not the majority. You are not the rule. You are the exception, and you are in a very, very, small minority. Go on with your bad self and feel secure in that knowledge, instead of acting like a narcissist and insinuating that everyone else is somehow inferior because they don't have your financial sensibilities.

I don't think anyone who READS to increase their knowledge is "hopeless". Whether it be a book about personal finance or setting up home theaters, nobody is born with knowledge on every subject and seeking it from those who tread the path before you is not only wise but practical. If personal finance was so "basic" as you believe it, then why do most Americans operate in debt? Your argument = fail.

The reason why I do not recommend credit cards to anyone is because the very concept of borrowing money when you have cash is pointless, and the concept of borrowing money when you DON'T have cash is stupid. As such, why have a credit card at all? If you play with snakes, you're bound to get bit. I don't play with snakes.

[Gannet]

Most Americans aren't very bright. We're lucky to be living in a country that had smart people running it for a long time while other countries tore themselves apart over religion, ideologies, ethnic strife, power plays, etc., but that doesn't mean we're so special that falling into habits like credit binging means that it can't be easily avoided. You're missing the trees for the forest here. If you have 20K in credit card debt already, no crap, you shouldn't get this credit card. For more sensible people, this is a steal as literally as it gets. And I don't mean a steal like "OMG T2: Skynet is $12, gotta buy it, cause I have an addiction for shiny discs!" either.

And I am not a very small minority. Some of the stuff you brought up is simply factually wrong. $10K in savings and you're in the top 1% in the U.S.?! Maybe if by savings you mean only money that you hide your sock drawer.

The reason why I do not recommend credit cards to anyone is because the very concept of borrowing money when you have cash is pointless, and the concept of borrowing money when you DON'T have cash is stupid.

It's not pointless when you get cash back on stuff you're going to buy anyways and can easily pay for. We're not exactly discussing wormholes here.

[Beta Man]

Originally Posted by repete66211

CNET has an article "How to get a PlayStation 3 for $100". Naturally, there's a catch--a multi-step process that requires you to have good credit, jump through some hoops and spend a lot of money. So technically this is not a sale, it's just a manipulation of the system.

Step 1: Sign up for Sony's no fee PS3 Visa card.
Step 2: Buy the 80GB PS3 on sonystyle.com for $399.99.
Step 3: In 8-12 weeks Sony will issue a $100 credit.
Step 4: Charging $3,000 on the card in the next 6 months will result in two $100 credits, bringing total cost down to $99.99.

So this isn't a barn burner, but if you a.) plan on buying a PS3 soon, b.) put about $500/month on credit cards and c.) have good credit, then it's a pretty good deal.

Note: Assuming you pay off the balance during the grace period that's a 10% discount.

How long do you have to keep the card open?

Originally Posted by spam.curitiba

sooo spend 3k to get a 99 dollar ps3....sounds like a brilliant idea...like the post above only really work if you plan on buying something over 3k...

Not a bad deal at all..... it's not like you're not getting the $3k worth of stuff you buy you know....... Book a vacation

Originally Posted by HD 335

I routinely spend at least $500/month on my credit card. Gas alone for me is about $350/month. Too bad I already have 2 PS3s or I might have signed up for this. Opening an additional credit card will impact your credit score slightly, but nothing you can recover in a few months unless you're buying a home and need the lowest interest rate possible.

Same here.... I have 2 PS3s already, and my next player will be the OPPO

But if I were in the market, I could easily put $3k on my credit card in one day for some pieces of furniture for the house that we're planning on getting anyways, and just pay the card off on the first bill....... I bet they make you keep the card open for 6 months though.

[bart122580]

Originally Posted by Sylin

The reason why I do not recommend credit cards to anyone is because the very concept of borrowing money when you have cash is pointless, and the concept of borrowing money when you DON'T have cash is stupid. As such, why have a credit card at all? If you play with snakes, you're bound to get bit. I don't play with snakes.

I try to use my Credit Card exclusively because I get points/cash back. I have cash to pay for my purchases, but why not use a card and get something back as well? Getting 1% cashback is better than getting nothing by using cash. Just my $0.02

[Blu-Benny]

having a side business, it would be nothing for me to put $3k on my credit card in 6 months.

may look into this this fall.