arch13

I have a quick question for my fellow tfp'ers tonight and i'm hoping i can get an answer by morning, or even by later tonight.

I have a verifiable need to by an lcd to replace my aging crt monitor, as my job requires long hours at a computer as an architect and the crt intensity has begun to effect my eye's.
I've been offered the chance from a well know brand to get a refurbed lcd for a nice % off in response to a small job i did for them (of course i still was paid to). I can pick up this lcd for $412 now instead of $600.00, but i have until 5pm to decide tommorow (3/5)

I'm carrying a balance of 2480 at 15.99% on my credit card.
I can finance this purchase from the company for 27.99%
If i use the CC, I'll continue to send $125.00 a month to my CC as i currently do.
If i use the financing I'll send 75.00 to the CC and $50.00 to the company until the LCD is paid off, the resume $125.00 CC payments a month

Which option do i choose. My first response is the Credit Card for the lower rate, but given to the large balance forward, I'm having difficulty determinig which is the most cost effective (read:most money NOT spent on interest)

Thanks for any help.

*edit*
I'm going to say that i'm a 5th year in college who will be starting "realworld" work in 12 months. At current i have 200.00 a month from family and 100-200 more from odd jobs.
I have a fellowship that covers my costs of living so my only expenses are that CC bill and anything i choose to buy. That said, advising that i shouldn't buy this is also a perfectly valid option.
However, i'm fluctuating between "I shouldn't buy this" and "This is one of the last times I'll have this few expenses to shoulder, and it will be a long time before i can afford to get new hardware again."

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NoSoup

What is the credit limit on the credit card?

arch13

$3000.00
I figured I'd pay $100.00 in principal up front, and finance the rest, or put it on the CC

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NoSoup

I would suggest going with the higher interest rate than, although it will cost you more money in interest.

My reasoning is this: If you bring your credit card too close to the credit limit, it will damage your Empirica (Credit) score and you may potentially pay much higher interest rates on much larger sums of money (read mortgage or vehicle loan)

However, if you choose to do this, I would suggest you make the minimum payment on the credit card and pay any additional money you can towards the loan with the higher balance.

Good luck - Let us know what you decide

arch13

Secondary question,

When i checked what APR they would offer me at this well known company to finance, i gave them my college address without thinking instead of my home address where all my CC bills and college bills go.
I was suprised when i was offered the 27% instead of 10-15% as all my other credit lines carry such %'s.
Could the college address as opposed to my home address been the cause?

*edit*
I just finally did the math at it would cost me $100.00 less to finance the LCD than put it on the CC.
Does anyone else have opinions on what course of action I should take?
Does anyone think i can get a better finance APR by re-applying with the correct address per above, or do i risk harming my credit score by having two credit checks in one month?

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"The wheel is turning but the hamsters dead"
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NoSoup

You would probably just end up hurting your credit - most consumer finance companies generally charge higher interest rates than your standard credit cards.

The bureau generally relies on you Birthdate, Social Security Number, and Name, so it shouldn't really have made much of a difference...

arch13

What do you mean by this?
Do you mean i just shouldn't get it, shouldn't apply again, or shouldn't use the company financing?

The financing is less in long and short term interest and doesn't put my CC balance near it's limit which you mentioned affects my credit score.
Thanks for the info on that addresses don't affect the rate offered.

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Is arch13 really a porn diety ? find out after the film at 11.
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NoSoup

Sorry I wasn't more clear, I was referring to you applying again

arch13

Well I went and did it on Sunday.
I put the $412.00 on financing at 27.99%.
I called up the company (I can say now that it was dell) and asked to give them some of what I owe. They said I can't pay until it ships Wed.
So On wed I'll pay $100.00 of the principal within the first month to avoid interest. If I then pay another $100.00 each month and just make minimums on my CC, I'll be done paying this in two or three months with aboout 15.00 in interest.

So NoSoup, Should I pay minimums on the CC and pay off this high interest amount first, or focus on the CC more since the balance is larger?
(MY CC info is in the first post)

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"The wheel is turning but the hamsters dead"
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Is arch13 really a porn diety ? find out after the film at 11.
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NoSoup

Doh! Sorry for the wait...

I would pay only the minimum on the card and then apply as much as you can to the balance of the higher interest amount. When that is paid off, take the same total of payments you were making and apply them to your credit card....