Using lines of credit to purchase cards

[T206DK]

Originally Posted by HOF Auto Rookies

Does anyone here take out like a line of credit from their bank, or home equity to purchase cards? Was just curious who has, and if it's worth it...

Pretty risky if you ask me...unless you are already wealthy beyond measure

[FrankWakefield]

A very bad idea. Unless someone has a huge, reliable cash flow so that the line of credit can be completely paid very soon.

[David W]

Originally Posted by T206DK

Pretty risky if you ask me...unless you are already wealthy beyond measure

In which case you don't need the line of credit........

[e107collector]

I guess I'm the minority in this thread. I actually just got one a personal line of credit a few months ago for $25k. I was approved in 2 hours. The interest is very low, and there are no annual fees. I haven't used it yet.

I have it in case one of the tougher cards I want comes up for sale, and I don't have all the cash to purchase it. I will use my line of credit, and just make a few monthly payments.

Just my opinion

Tony

[zljones]

Originally Posted by e107collector

I guess I'm the minority in this thread. I actually just got one a personal line of credit a few months ago for $25k. I was approved in 2 hours. The interest is very low, and there are no annual fees. I haven't used it yet.

I have it in case one of the tougher cards I want comes up for sale, and I don't have all the cash to purchase it. I will use my line of credit, and just make a few monthly payments.

Just my opinion

Tony

Even though I messed up my own credit, I do know how credit works because I worked in the credit repair business a few months ago. Use that card but make sure it is for one purchase at a time, then pay it off or at least pay it in a few payments. A few payments is better actually. Use the rule of 30%. If your balance is above 30% of your limit it hurts your credit, if you keep it on or below it improves your credit. I did things stupid, but I knew what I was doing, but I have knowledge of the workings of credit. Just use that card in moderation and do not go nuts don't be dumb like me.

[HRBAKER]

IMO, if I have to finance something it's crossed the line from a hobby into something else.

[glchen]

I'm w/ the crowd that thinks it's too dangerous. It is always very tempting when you see a card that you really want, or one doesn't come around very often or even one that you think is underpriced and that you can do a quick flip on. However, it's very easy to get yourself into unsustainable amounts of debt very quickly, and then you need to do a firesale on your cards where you lose even more money. As others have said, it's best to just spend what you have.

[cubsguy1969]

I'd be afraid to use a credit line for collecting -- too much temptation (for me anyway; I'm a weak man). But for business purposes, it seems like it could be beneficial. My ebay business is fairly small and I don't typically have a lot of cash on hand. So if I should stumble upon a large collection of cards or books or records or whatever, and the price is right, I'd hate to miss the opportunity.

A couple months ago I bought a huge collection of those Easton Press leather bound books for 2 grand. In that case, I happened to have the cash available. But if I didn't, a credit line sure would have been helpful. I sold the collection for nearly 6 grand within a month so I would have been able to pay it off pretty quickly.

I guess we're talking about two different animals. Or at least I am.

[rainier2004]

So I use credit now...

We have an interesting situation in that I have access to the majority of our retirement, anytime, without penalties for 30 days. Im not a CPA, and this is personal, its just the way its CURRENTLY set up.

I have used this "credit" 3 times...2 5k+ CJ lots and a couple e107s. This credit is my only advantage in the market. I can bid lots for what I think they are worth. I had to resell tons of cjs to put the money back, plus I make the payments as well. The e107s we kept. The first CJ lot took 6 weeks to finish, but after 4 weeks the debt was well below 1k and the fees were small. Im am now 10 days into experiment 3 and things are going well and really hinge on the sale of a single matty. I cannot afford to pay 65-100 for a cj common as they are all over the place now, and my fee were a couple bucks. BNow, I can buy 50 or 60 cjs and sell those i dont need for a fair price and pay the rest for what I keep and I always get to decide what I keep. I also downgrade my set, if appropriate, and am just trying to make it to 177(I count the Chance as part of the set). I do it to fuel my hobby...I dont buy cards to make money, but I want my cjs so this idea was the result with the best results.

It was scary the first time, this time I had a $6600 debt and didnt bat an eye. It bothers me somewhat that I feel there is always an angle now...but Ive met tons more great guys on here(Hola Jared, David, Mac, Andrew, Toby, JR and Mr. Barry ) doing this and enjoy selling cards as well as it fulfills the fix for me. I would NEVER buy a card "because i just had to have it" but honestly, I wish I had started doing this earlier.

[zljones]

Originally Posted by rainier2004

So I use credit now...

We have an interesting situation in that I have access to the majority of our retirement, anytime, without penalties for 30 days. Im not a CPA, and this is personal, its just the way its CURRENTLY set up.

I have used this "credit" 3 times...2 5k+ CJ lots and a couple e107s. This credit is my only advantage in the market. I can bid lots for what I think they are worth. I had to resell tons of cjs to put the money back, plus I make the payments as well. The e107s we kept. The first CJ lot took 6 weeks to finish, but after 4 weeks the debt was well below 1k and the fees were small. Im am now 10 days into experiment 3 and things are going well and really hinge on the sale of a single matty. I cannot afford to pay 65-100 for a cj common as they are all over the place now, and my fee were a couple bucks. BNow, I can buy 50 or 60 cjs and sell those i dont need for a fair price and pay the rest for what I keep and I always get to decide what I keep. I also downgrade my set, if appropriate, and am just trying to make it to 177(I count the Chance as part of the set). I do it to fuel my hobby...I dont buy cards to make money, but I want my cjs so this idea was the result with the best results.

It was scary the first time, this time I had a $6600 debt and didnt bat an eye. It bothers me somewhat that I feel there is always an angle now...but Ive met tons more great guys on here(Hola Jared, David, Mac, Andrew, Toby, JR and Mr. Barry ) doing this and enjoy selling cards as well as it fulfills the fix for me. I would NEVER buy a card "because i just had to have it" but honestly, I wish I had started doing this earlier.

That is smart as hell and it boosts your score tremendously. I have never thought of that idea. It's too late for me, but man keep at it, that is very smart, I do not know if you checked your credit score lately but you may have a score above 800 doing things that way

[HOF Auto Rookies]

I do not have a personal line of credit, no need for one. I feel I am doing very well with my spendings and limitations, and as much as I hate it, I'm trying to sell more cards to help upgrade or add new pieces to my collection. Got hit hard get a very nice signed 1940 PB of Ted Williams and Mays, Aaron and Koufax signed rookies.

If something comes up that I HAVE to get for my collection, I will consider a line, or borrow from someone. But can't imagine using thousands and thousands of dollars. The thought is too scary that it'll get out of hand into something worse.