# Musiciansfriend payment plan thingy



## heavy7-665 (Jun 20, 2008)

is it a complete scam?


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## Chris (Jun 20, 2008)

No, but generally retail chain cards like that have absurdly high APR's. If you have poor credit and absolutely must have the gear, do it. If not, put it on a normal charge card.


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## heavy7-665 (Jun 20, 2008)

k im almost 18 and have decent credit but i need the gear. if i used a normal credit card would i still pay the same?


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## Drew (Jun 20, 2008)

Really, it depends how you plan on paying it off. What's your APR, and how much would you pay off a month?

EDIT - I'm assuming you're talking about an item that would cost more than $399, so you'd be elligible for their 12-month "same as cash" financing. The plus here is it makes the math a lot easier, too, since the Annual Percentage Rate happens to be applied over an annual period.  

Here's the terms: 



> **Same as Cash offer on approved Musician's Friend Platinum credit card purchases of $399 and more. No Finance Charges if purchase paid in full in 12 months. If purchase not paid in full or Account not kept current, Finance Charges assessed from purchase date and Minimum Monthly Payments required. Variable APRs as of 05/31/08. Standard Rate: 22.9%; Default Rate: 26.9%. Minimum Finance Charge $2. Certain rules apply to the allocation of payments and Finance Charges on your promotional purchase if you make more than one purchase on your Musician's Friend Platinum credit card. Call 1-888-367-4310 or review your cardholder agreement for information.



A few things to note - 

1.) you need to be approved for their Platinum card. This may be tricky if you're under 18, so this may not even be an option for you. You might need to talk to your parents about having them apply and purchase for you. 
2.) There are no payments and no financing charges due for 12 months - "play now, pay later." This is potentially quite cool, provided you can get the entire balance paid off in less than 12 months. However...
3.) If you don't pay off the balance in full, then you get retroactively assessed interest. If, for example, you were buying a $999 USA Standard Stratocaster, and didn't pay it off for 12 months, then on the first day of the next month you would be assessed 22.9% interest retroactively calculated over the course of the year. If you didn't pay a dime over that year, that'd be a $229 financing fee. If you payed off part of it, it becomes more difficult to calculate, but the longer you left a large-ish balance on the card the more you'd owe. 

If you get approved, it's a good deal if you pay it off in full before those 12 months are up - it's basically no-interest, no-fee credit. If you don't, however, they assrape you. 

Honestly, it's better to save up for the gear and pay it with money you have. What do you mean "need" the gear?


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## park0496 (Jun 20, 2008)

I think their offer is usually 6-12 no interest same as cash...just make sure to pay everything off before that period is up.


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## heavy7-665 (Jun 20, 2008)

The payment on it is $34 per month but i will pay about 100 or so


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## Drew (Jun 20, 2008)

$34 a month for how long? Over 12 months, that'll pay off $408. Considering a $999 Strat is $30 a month, I'm guessing that's 3-year financing. Is the purchase price of this item around $1,200?

What they're not telling you is that your payment may be $34 a month, but after the first 12 months because you'll only have paid off a third of the balance you'll get hit with almost $280 in interest, and you'll continue to accrue interest at around 22% a year unless you pay off significantly more than that. 

Again, what's the APR rate on your regular card? If it's lower than 22% (it almost has to be, if you're credit's any good and youre not in default) and you're not 110% sure you can pay off the full balance within 12 months, pass.


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## Chris (Jun 20, 2008)

Also note that there is no "Musiciansfriend bank", it'll be some third party lender. For example Guitar Center is actually HSBC.

GE Capital Consumer Card w/Musiciansfriend.com

Looks like MF's credit lendor is actually "GE Capital Consumer" in this case. I'm no expert, but I think it might change depending on what state you're in and what your credit score ends up being. If you have solid credit you'll probably be more apt to get a more known bank, while slow/no credit = they'll ship you off to some 24.99% APR monstrosity just to get you approved.

Where you are 18 and have no "bad" credit to speak of, you'll probably get approved at around a ~10% APR on a normal credit card, which will look better in the long run on your credit report and not jack your rate up after 12 months. 

Edit: The fact that you're under 18 might hurt you though.

Edit again: They might actually be HSBC.

HSBC Acquires Musician's Friend Credit Card Portfolio

[action=Chris]goes off to look.[/action]


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## Chris (Jun 20, 2008)

heavy7-665 said:


> k im almost 18 and have decent credit but i need the gear. if i used a normal credit card would i still pay the same?



By "decent credit", do you mean that your score is 700+? Do you have a good history of making payments on time over the course of a couple of years? Got a car in your name? Etc, etc.


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## Chris (Jun 20, 2008)

Check it:



> No interest, no payments for 3 months*
> 
> *Same as Cash offer on approved Musician's Friend Platinum credit card purchases. No Finance Charges if purchase paid in full in 3 months. If purchase not paid in full or Account not kept current, Finance Charges assessed from purchase date and Minimum Monthly Payments required. Variable APRs as of 05/31/08. *Standard Rate: 22.9%; Default Rate: 26.9%. Minimum Finance Charge $2.* Certain rules apply to the allocation of payments and Finance Charges on your promotional purchase if you make more than one purchase on your Musician's Friend Platinum credit card. Call 1-888-367-4310 or review your cardholder agreement for information.
> 
> ...



The fucking hell with that.


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## S-O (Jun 20, 2008)

As long as you stay on top of shit and make payments on time, credit cards = Awesome, if you can manage the cash, most stores will come down a bit. I got a deal on my RG550 reissue because I paid in cash, ended up being 100 less than what it would have sold with the already large price knock off.


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## heavy7-665 (Jun 20, 2008)

I can definatly pay it off in the 12 months. i will be paying between 100-150 per month or more. i have 250 for a down payment. i need it because my band is going to record in three weeks. 

I had a phone bill in my name for over three years and was never late on it.


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## Drew (Jun 20, 2008)

Can you even HAVE a credit card in your own name under the age of 18? I mean, legally speaking, you're not an adult until you turn 18, which means there's not much a lender can do to collect if you default. It strikes me as a massive credit risk, so I'd think if you're even offered a card in your own name the rate would be through the roof and the credit limit would be a joke. 

I started carrying a card at 17 just in case, but while my name was on the card it was a line of credit through my Mom's account. I didn't get around to applying for a card in my own name until I was 22, when I was surprised to find out that because the line of credit itself wasn't in my name, I had no credit history. 

So, my first credit card had a $300 credit limit.  Let's just say it's gone up a tad since then.


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## Drew (Jun 20, 2008)

Chris said:


> Check it:
> 
> 
> 
> The fucking hell with that.



HAI2U, CHR1Z!!!11!!


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## heavy7-665 (Jun 20, 2008)

I may just have my parents make payments on their card and ill give them the cash


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## Drew (Jun 20, 2008)

S-O said:


> As long as you stay on top of shit and make payments on time, credit cards = Awesome, if you can manage the cash, most stores will come down a bit. I got a deal on my RG550 reissue because I paid in cash, ended up being 100 less than what it would have sold with the already large price knock off.



Even then, if you're carrying a balance for longer than that first month, you're paying interest. It's not a question of making payments on time, it's a question of paying it off in full on time. Otherwise, you pay for the privelage of instant gratification. 

Remember that the credit industry is a for-profit industry with a large and powerful lobbying branch that have spent decades shaping laws that allow them to get away with murder, and you're good to go. 

To the OP -what are we talking about, a new guitar? A new amp? What's wrong with your existing rig, and is there any reason you couldn't simply borrow something for the studio? Does the studio have gear you can use? 

I'm always leery going into a studio type situation with new gear or gear I don't know very well. I'd rather use something I know how to dial in than try to learn a new peice of gear while paying heftily by the hour.


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## heavy7-665 (Jun 20, 2008)

I am sure i will be able to pay it off in full in about 4 months. Heres the newbie mistake i made. lol I wrote myself into a hole. i tuned a 7 down like an 8 just to fuck around adn guess what happened. . . i wrote an album. lol and the 7 sounds like crap on recording.


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## Drew (Jun 20, 2008)

Lower the gain. Trust me, if you can physically play all the material on your detuned 7, the odds are against your being comfortable enough on a 27" 8 string three weeks from now to not fuck up left and right when you're under the gun in the studio. 

Meshuggah cut Nothing on detuned 7's - they managed to make it work. Definitely grab an 8 down the road, but now isn't the time.


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## kristallin (Jun 20, 2008)

If you need to make payments, go with American Musical or ZZounds. 3 or 4 payments on any card you choose, even your debit card, and you're done. No astronomically high interest rates to worry about. Plus these guys are actually reliable.


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## heavy7-665 (Jun 21, 2008)

Drew said:


> Lower the gain. Trust me, if you can physically play all the material on your detuned 7, the odds are against your being comfortable enough on a 27" 8 string three weeks from now to not fuck up left and right when you're under the gun in the studio.
> 
> Meshuggah cut Nothing on detuned 7's - they managed to make it work. Definitely grab an 8 down the road, but now isn't the time.



but then there is the live problem. . . . Im going to check my options before i jump at this


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## The Atomic Ass (Jun 21, 2008)

Drew said:


> 3.) If you don't pay off the balance in full, then you get retroactively assessed interest. If, for example, you were buying a $999 USA Standard Stratocaster, and didn't pay it off for 12 months, then on the first day of the next month you would be assessed 22.9% interest retroactively calculated over the course of the year. If you didn't pay a dime over that year, that'd be a $229 financing fee. If you payed off part of it, it becomes more difficult to calculate, but the longer you left a large-ish balance on the card the more you'd owe.



Nope. If you don't pay the balance off, IN FULL by the end of the SAC period, you get charged the interest as if there had not been an SAC deal on there at all. As in, you get charged the full interest rate computed from the day you bought the item, regardless of how much you've paid down.

Don't ask me how I know this.


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