Be careful using Best Buy's credit card for big purchases this holiday...

[Expat]

I always take the bonus points so it is applied to the cash rewards.

 

[Cameramonkey]

How do you pay cash when shopping online?

And if the answer is "Use a debit card" you lose. Compromised debit cards are not as protected as credit cards.

Somebody steals your credit card number and charges $2000 fraudulently? You get the charges reversed and are not on the hook.
Somebody steals your debit card number and spends $2000 of the money in your checking account fraudulently? You can be on the hook between $49 per transaction or the whole $2000. (depending on your bank's rules and, states banking laws, etc)

 

[CHCRandy]

Wow 100-150% return on your investment. Please share your secret with the rest of us.

There really is no secret other than try to be smart, don't get greedy, lock in profits and move on. I started playing options this year and you can make huge gains with them. 1000% gains in a month is not uncommon, you can also lose 100% very quickly. I invest a ton of time, I don't always make money but I try to get big hits. My last options play I paid .11 per option and sold for .90-$1 less than 3 weeks later. I invest in companies that pay 12-14% dividends then use my dividends to play options. In the last 2 months I had a stock go from $3 a share to almost $18....and another go from under $1 to $3 and then a few days later from $1.10 to $2. Right now I am playing a stock that is really cheap, I expect it will pay me 200-300% before end of the year. I trade a lot, like several times daily.

My strategy is pretty straight forward. I try to never put over 25% max(prefer closer to 10%) of total portfolio in one trade and limit losses to 2-5% of investment at most....if I put 25% in 4 stocks and 3 of them lose 5% and hit a stop loss but one gains 100%....I am still up a bunch. The stocks I trade a 100% hit is pretty easy to get, and usually happen frequently, but most of them I own less than an hour. I am not a safe investor, I am a reckless gambler. That is why I can make them % returns. Your money manager can't do what I do, because he has a fiduciary duty to protect your money and make sound investments....neither of which I do. The 3 most important things...don't force trades, lock in profits and learn to take losses. You figure you put $25,000 in a stock and it drops $1,000-1500, psychologically it is hard to make yourself sell and take that loss...and move on. Everything in your mind will tell you it will come back, but if you continue to lose it gets even harder to take loss. It may well come back, but when? You have all your working money tied up in a loser instead of working in another stock to make money. My largest penny play right now is a cancer stock, beaten down badly...ticker is ADXS. I own tons of shares of it at about .29 each. You can follow along and see if I make any money on it, if you follow the stock market. It is a true gamble...but I expect it to go to .70-$1 by end of December. I won't bore you with why I think it will run. Don't go buy this stock because I own it.....I don't want to feel responsible for anyone losing money!

Sorry to ramble...as you can probably tell, I love playing and talking stocks. I love when I find someone as interested in that stuff as me. Take care.

 

[PistolBob]

I buy nothing from Best Buys, Lowes, or Mennards....I don't have time to play games on how much something costs.

 

[Hoosierdood]

So do I, but they are one of the few places that let me actually poke, prod, and tinker around with with display models on my own before I buy something. I just tell the salesman what I am there to buy, but that I need to look it over first and I will find him if I have questions and when I am ready, and they happily leave me alone and go help another person knowing their commission on my sale is coming basically for free.

Best Buy employees don't get paid commission.

 

[Hoosierdood]

I buy nothing from Best Buys, Lowes, or Mennards....I don't have time to play games on how much something costs.

Pretty sure that all 3 of those places have price tags clearly displayed next to the items and they don't negotiate on price. What games are being played?

 

[IndyBeerman]

And if the answer is "Use a debit card" you lose. Compromised debit cards are not as protected as credit cards.

Somebody steals your credit card number and charges $2000 fraudulently? You get the charges reversed and are not on the hook.
Somebody steals your debit card number and spends $2000 of the money in your checking account fraudulently? You can be on the hook between $49 per transaction or the whole $2000. (depending on your bank's rules and, states banking laws, etc)

This the reason some debit cards like Local Bank Visa Debit cards have a credit function added to them, where you can either chose debit or credit. It still comes directly out of your checking, but has Visa protection added to it, including the extended original warranty feature like the standard Visa card has.

 

[Gabriel]

And if the answer is "Use a debit card" you lose. Compromised debit cards are not as protected as credit cards.

Somebody steals your credit card number and charges $2000 fraudulently? You get the charges reversed and are not on the hook.

This actually happens to me about three times a year.

 

[Gabriel]

I buy nothing from Best Buys, Lowes, or Mennards....I don't have time to play games on how much something costs.

What games? I was just at Lowes and Menards and all the pricing was straight forward and i didn't have to play a single game.

 

[Route 45]

Credit cards=playing their game and their rules. You may save a few dollars in the short term, but will almost certainly end up losing. I have had them, but never again. Even if you do make all the payments etc., you open yourself to much more risk that I'd personally prefer to avoid.

Fair enough. I sense that we won't agree on the merits vs. risk of credit cards.

It has nothing to do with agreeing or disagreeing. This is not a matter of opinion. There is no risk with a credit card. Fraudulent purchases are removed by the credit card issuer if you get hit by a fraudster. If you can't manage your use of a credit card, well, that's a different conversation.

If someone takes advantage of a 0% offer for a fixed term, the terms are generally listed on their website and very specific. I've made use of these types of offers before for large ticket items. The key is to not use that specific card for anything else until your promotional period is over and/or your item is paid off. That way, you don't worry about what part of the payment goes to what part of the purchases. It can only go towards the promotional item balance.

I use a cash-back credit card for everything. I mean if I buy a Snickers, it goes on the card. I pay the complete balance every week. I get 1.5% cash back on everything. I have literally received hundreds of dollars in cash back from credit card companies. And I'm shielded from fraud and get consumer protections from my credit card issuer for every purchase. Using a credit card the right way is one of the wisest things you can do financially.

 

[edwea]

Let's agree to disagree. I don't use credit cards. Fraud isn't the only risk. You could lose a job. Or there be some issues with payroll and your paycheck comes late. Or an unexpected bill comes up and the credit card can't be paid off. Or you get injured and can't work for a period of time. Or...
It just isn't a game I play. My opinion is that it is unwise. See Proverbs 22:7

 

[MCgrease08]

How do you pay cash when shopping online?

Use cash to buy gift cards or prepaid cards.

 

[jd4320t]

Lol who else new how this thread would turn out??

 

[Cameramonkey]

This the reason some debit cards like Local Bank Visa Debit cards have a credit function added to them, where you can either chose debit or credit. It still comes directly out of your checking, but has Visa protection added to it, including the extended original warranty feature like the standard Visa card has.

But in many cases, during the dispute even if you arent hit with a per transaction fee, most banks dont put the money in your account immediately while the dispute works out. So even if you get it all back, it may be tied up a week or two. (or more).

Let's agree to disagree. I don't use credit cards. Fraud isn't the only risk. You could lose a job. Or there be some issues with payroll and your paycheck comes late. Or an unexpected bill comes up and the credit card can't be paid off. Or you get injured and can't work for a period of time. Or...
It just isn't a game I play. My opinion is that it is unwise. See Proverbs 22:7

So you never buy anything online? Or you just take unnecessary risks and use a debit online?

You can use credit cards wisely. We always have the cash on hand before buying online. A blanket statement of "dont use credit cards." is wrong.

And I have a Hilton Honors Amex I use for an expense account. (company doesnt give me a card) Havent paid a dime of interest in 7 years, and thanks the rewards, I havent paid out of pocket for a personal hotel stay in as many years.

 

[BehindBlueI's]

Let's agree to disagree. I don't use credit cards. Fraud isn't the only risk. You could lose a job. Or there be some issues with payroll and your paycheck comes late. Or an unexpected bill comes up and the credit card can't be paid off. Or you get injured and can't work for a period of time. Or...
It just isn't a game I play. My opinion is that it is unwise. See Proverbs 22:7

That's not a credit card risk. That's an inability to budget and have an emergency fund risk. I don't live paycheck to paycheck. If you do, I'd recommend reading "The Richest Man in Babylon". It's a book that's about 90 years old now but still in print...and for good reason.

I'm not trying to be snarky, btw. That book, along with Ric Edelman's "The Truth about Money" helped me change my life. One line of the Richest Man in Babylon book is a guy (the one who eventually becomes the Richest Man) complaining he can't save money because he doesn't make enough. He is told that no matter what you make, someone else is getting by on 10% less. Figure out how they do it and you now have 10% of your income to save. Seems simple in hindsight, but that one line set me on the path to, over 16-ish years, increase my net worth by roughly a quarter million dollars. I started with negative net worth and almost no savings. Now I'm on the path to retire comfortably at the time of my choosing and could go a year without a paycheck before I really had to impact my lifestyle.

 

[fullmetaljesus]

How do you pay cash when shopping online?

I use my bank card.

 

[edwea]

I do budget and have an emergency fund and don't live paycheck to paycheck. I just don't use credit cards. I understand that I miss out on incentive programs through them. Different strokes I guess.

 

[jkaetz]

I discovered that Best Buy's credit people (and likely other's) are playing games with the "no interest for XX months" (i/f) purchases.

You would think the first thing you bought would get paid off first... i.e. buy a $800 dryer w/18 months "no interest", have it paid off after 16 mo with $50 payments (or 8mo with $100 monthly payments in my case)... NOPE.

Turns out that, unlike a Bank CC, ANY "regular" non-promotional purchase, even an $9 SD card or $30 mouse, jumps to the front of the payment schedule.

So, if you are like me and you use their credit card for occasional big purchases, but also for medium purchases here and there, and make pre-set automatic payments to maintain a good credit history (761 fico last I checked, and yes I know who Dave Ramsey is)... then your occasional big purchases get shoved back further and further down the payment schedule. UNLESS YOU MANUALLY CALL IN and state you want the promotional balance paid FIRST, all payments go to non-promotional balance. Even if you do state the payment goes to the promotional balance, the payment will be split evenly between ALL promotional balances unless you AGAIN state specifically which they are to go to.

Turns out that of the current $650 balance (which I thought was almost all from a $500 TV plus a $200 microwave and $300 convection toaster oven that I bought THIS summer as part of a kitchen refresh) is actually $350 of LAST YEAR'S $800 dryer (18mo i/f), $200 of the TV (6mo i/f) and $100 of "regular purchases" (the oven and microwave were not on promotion)... and that NONE of last several month's $100 payments went to the dryer... I'll call in and MANUALLY pay $130 towards the dryer instead of $100 in "regular" payments for the next 3 months and avoid the addition $190 in interest they would have tacked on Jan 21st if I hadn't caught on, but shame on them for playing those games.

Isn't that how all of these work? You have to pay the non-promotional items first as they will accrue interest charges each month. If you're paying off a large ticket item over time and then add something else to the card balance you will need to pay not only your budgeted amount but also the extra purchase for that month.

I do budget and have an emergency fund and don't live paycheck to paycheck. I just don't use credit cards. I understand that I miss out on incentive programs through them. Different strokes I guess.

When paid in full each month a CC is essentially a bank card with benefits. The money simply comes out of the bank account once/month instead of continually. A credit card doesn't require anyone to make purchases they can't afford which is the root of most people's "problem" with credit cards.

 

[IndyBeerman]

PayPal is your friend for online purchases and adds a extra layer of security.

 

[JettaKnight]

Use cash to buy gift cards or prepaid cards.

That sounds like a lot of work. Plus it sounds like money laundering.


I like having a nice statement come in the mail each month of all the purchases - I don't think I've thrown one out. Ever. Like twenty years of statements. All showing 0% interest and no fees.

Lol who else new how this thread would turn out??

They always do...