Buying Guns With a Loan?

[GunXpatriot]

Probably one of the weirdest schemes I've thought up, but tell me if I'm crazy..

I'm 23, and haven't ever built up a ton of credit up until this point. So it's not that I have "bad credit". I just have "no credit".

Well now I'm at a half-decent paying job. I COULD technically afford a few of the guns I want. But what if I took out a loan to get them? I get all the cool toys I want, and get to build up my credit, which of course might be useful in the future for larger purchases.

I guess I'm only brainstorming on this for my specific situation, as someone who could find some use in building up my credit. Any thoughts? Am I completely insane?

 

[BuffNiag]

Get a no fee credit card with cash back rewards. Pay it in full every month. Use it to pay for a gun purchase if you wish.

 

[C3D]

Boy is that the American way. Borrow money to buy stuff.

Love it!

 

[Blimey]

Major alarms going off reading your post. If you want good credit get a credit card, use it very little, pay it off each month. You can have a 700+ score in no time flat and that's as good as you need.

Forgive me if I'm presumptive, but I suspect nobody has ever really sat you down and talked about the financial birds and the bees with you. But C3D's post above mine he intended as a joke, so it inspired me. Plus this stuff is a huge interest of mine.

Instead of worrying about borrowing money to buy guns you should be putting aside 10% of your income minimum to start. Put it away into the stock market in an index fund and let it build. Buy your guns with cash.

The "get all the cool toys I want" is not true. There is always a catch.

I know your post was about guns, but if it was at all, truly, about money, this is the prime directive that all the guys at reddit.com/r/personalfinance came up with. This right here is your roadmap to being wealthy. It does work.

https://i.imgur.com/lSoUQr2.png

 

[GunXpatriot]

Major alarms going off reading your post. If you want good credit get a credit card, use it very little, pay it off each month. You can have a 700+ score in no time flat and that's as good as you need.

Forgive me if I'm presumptive, but I suspect nobody has ever really sat you down and talked about the financial birds and the bees with you. But C3D's post above mine he intended as a joke, so it inspired me. Plus this stuff is a huge interest of mine.

Instead of worrying about borrowing money to buy guns you should be putting aside 10% of your income minimum to start. Put it away into the stock market in an index fund and let it build. Buy your guns with cash.

The "get all the cool toys I want" is not true. There is always a catch.

I know your post was about guns, but if it was at all, truly, about money, this is the prime directive that all the guys at reddit.com/r/personalfinance came up with. This right here is your roadmap to being wealthy. It does work.

https://i.imgur.com/lSoUQr2.png

Thats a really great roadmap, and I think I'll spend a bit of time studying it.

Yeah, I guess I might as well go for a credit card then. I actually set aside a good amount more than 10% of my income on the side. More like 20%+, on top of investing some more into both stocks and crypto. On the latter, damn, I shoulda' sold during the run in January, and the subsequent run in May, but I digress..

I guess my main point was that I have the means to basically afford a "fun purchase for myself" every month. Nothing huge, but I'm doing okay. And since I have way more than the means, I figured I'd use those means to build up credit, you know?

I'd wager I have a lot more in savings than probably 75% of people my age and I'd say I'm "decent" with money at least. I don't say this to brag. I'm still living at home for multiple reasons. I can readily afford to move out and live alone with my job if I chose to. But because of issues my mom has, it's better I'm around to help her. And despite paying about half the bills here, I'm still on a high-paying career path, which has helped tremendously.

I've learned the hard way from my family, how just making good financial decisions can make or break your life. Especially my grandpa, who was always a dreamer, but hasty because of it, and lost a lot for no reason.

But even with all of this, I've pretty much just dealt in cash up until this point. So do you think that all of this considered, just trying to get the best deal I can on a credit card and (obviously) keeping up with it, is a good way to move towards where I want to be? In the next few years, I'd like to at least be able to buy a small apartment, maybe even own it outright. I think they say a rule of thumb for your home, is like 30% MAX of your net worth? I'd like it to be less. So I'm just trying to figure out a decent credit situation for the future, if that makes any sense..

 

[kev74]

Don't borrow and pay interest for toys.

 

[BDinPutnam]

Don't borrow and pay interest for toys.

And run the hell away from "crypto."

 

[Deplorable Me]

Real men pay cash for their guns and ammo...........


.......... mostly because some wives are meaner than ATF agents.

 

[kev74]

I'm all for using a credit card if I'm going to get something out of it - discount, points, extended warranty, etc. - but don't pay interest on it. Alternatively, cash is king. I'd rather pay less with cash than pay full price and get points.

 

[Jaywmustang]

I buy my expensive gun stuff on credit. I normally sign up for a card with 0% apr for 12-24 month and I pay it off before interest occurs. Plus some cards give u a statement credit so I figure I made money.

 

[Acer-m14]

i needed a 4x4 truck to pull a camper i rebuilt .. so went to the bank for a used auto loan ... i just added a extra grand to it and bought a gun too
gotta have a truck gun you know ..

 

[Jaywmustang]

i needed a 4x4 truck to pull a camper i rebuilt .. so went to the bank for a used auto loan ... i just added a extra grand to it and bought a gun too
gotta have a truck gun you know ..

I need to try that lol

 

[Acer-m14]

I need to try that lol

what i did .. truck was for 4600 used .. talked him down to 4300 , went to bank for loan .. bla bla . with the bank lady ,, you sure all you need is 4300 .. well
do need to register it and stuff .. how about 5300 for the loan .. ok .. got the truck and my O/U Skeet Gun ..

 

[GunXpatriot]

And run the hell away from "crypto."

I dunno man, been in the game for years now and I've made more money from it than I ever would have imagined. Far as I'm concerned, it's as good as any other investment. High risk, high reward.

 

[GunXpatriot]

I buy my expensive gun stuff on credit. I normally sign up for a card with 0% apr for 12-24 month and I pay it off before interest occurs. Plus some cards give u a statement credit so I figure I made money.

Only thing is with cards like that, is if you miss a payment on a "no-interest loan" like that, it TANKS your credit to hell. I know, "Don't miss a payment", but a lot of people have gotten screwed hard by that stuff. But for my purposes, I guess it's not the worst idea ever.

 

[Bob]

Real men pay cash for their guns and ammo...........


.......... mostly because some wives are meaner than ATF agents.

This. I've said it before, and it's worth saying again. When I die, I hope my family is able to sell my guns for what they're REALLY worth, not what I've told them the guns are worth.

 

[Blimey]

But even with all of this, I've pretty much just dealt in cash up until this point. So do you think that all of this considered, just trying to get the best deal I can on a credit card and (obviously) keeping up with it, is a good way to move towards where I want to be? In the next few years, I'd like to at least be able to buy a small apartment, maybe even own it outright. I think they say a rule of thumb for your home, is like 30% MAX of your net worth? I'd like it to be less. So I'm just trying to figure out a decent credit situation for the future, if that makes any sense..

When I started my credit I went from literally having no credit at all to 700+ in under two years. I managed to get bank of america back in the day to give me a card, and I just used it and always paid it. Once you have one card for a while, then get a second one. Sit on those and they will build your credit quickly. Never, ever miss a payment (and really you should be paying it off each month to avoid the crazy interest rate), and your credit score will go stratospheric pretty quickly.

For buying a home the most conservative guidance I've heard is from dave ramsey and he says 20% down (to avoid PMI), then payments on a 15 year note shouldn't be more than 25% of your net. This is going to be hard for most people. Traditional guidance says no more than 3X of your gross income on a house, but in NY I think this is excessive. $100k income with a family buying a $300k house is a stretch because property taxes are crazy unless a person has a bunch to put down.

I bet you do save more than most your age based on what you said!

 

[togmaster]

 

[Bob]

Lots of solid info here. If I can add one thing...
For the love of all that is holy, if you're not already, start saving for retirement. NOW!!!
As you approach your retirement years, two of the most satisfying words you will hear are "compounding interest"

 

[Mk44]

That's where a lot of people get into a jam... they get a loan to pay for it, or charge it and finance it. And before they know it they're purchasing more than they can afford (struggling to pay it off.) I know a couple of friends like that.
imo, getting a loan to buy guns is not a good idea. The interest that you pay on a loan will cause the purchase to be more than the guns are worth.

As Blimey stated... use a credit card to build your credit. Pay your credit card bill on time when it comes in.

Invest your money while you're young. If you do it right, you'll be comfortable/wealthy when you're older.

 

[Jaywmustang]

Only thing is with cards like that, is if you miss a payment on a "no-interest loan" like that, it TANKS your credit to hell. I know, "Don't miss a payment", but a lot of people have gotten screwed hard by that stuff. But for my purposes, I guess it's not the worst idea ever.

True but if u miss a payment on anything, it could mess with your credit. For myself, if I miss a payment on my fun card, it means I have more serious issues financially. I don’t take my time paying my fun card, I pound it out. I have never went to the full term of the 0 apr introduction rate. If you open to many cards, it will hurt your credit score.

 

[Marine Cpl]

As with any purchase when you don't have the money, just get what you need. A pistol and a long gun and pay it off. To spend thousands on credit on numerous guns just because is silly and just the same as the homeboys who get a salary front on a rap album who blow it on cars and diamonds instead of a home.

Credit is for small purchases that you can pay off in a month or two.

 

[Robin]

Not a good time to be ringing up debt, not that there ever is. If you do this, never charge up more than you can pay off in cash the day the bill comes due.
Robin

 

[wizrd]

I know a friend who mortgaged his house to buy a $ 13K Perazzi...just saying.

 

[Acer-m14]

I know a friend who mortgaged his house to buy a $ 13K Perazzi...just saying.

come on come on say the word .. he's a FUDD LOL ..

 

[wizrd]

As a matter of fact, NO - he was ( now deceased ), also a master gunsmith, who also scratch built firearms that you can only imagine and wish to own here. The fact that he also shot trap and skeet at top championship levels just came from his love of all firearms. Takes a small mind to cast aspersions at people you don't even have any knowledge about...just saying.

 

[Paxal]

Probably one of the weirdest schemes I've thought up, but tell me if I'm crazy..

I'm 23, and haven't ever built up a ton of credit up until this point. So it's not that I have "bad credit". I just have "no credit".

Well now I'm at a half-decent paying job. I COULD technically afford a few of the guns I want. But what if I took out a loan to get them? I get all the cool toys I want, and get to build up my credit, which of course might be useful in the future for larger purchases.

I guess I'm only brainstorming on this for my specific situation, as someone who could find some use in building up my credit. Any thoughts? Am I completely insane?

If you do it, use restraint. Only buy what you can pay off easily. Also, you might focus on guns that will maintain their value or go up in value. That way you come out ahead, and you are using fake money to create real value...sorta. Anyway, dont let yourself become a debt slave.

 

[subsonic]

You're asking strangers for their blessing for you to go into debt to buy guns? It sounds like you've already made up your mind. Go ahead, gunmakers and retailers will thank you.

Future you will probably want to strangle you though. Going into debt for consumer items and toys may be the American way but it is a terrible habit that will weigh you down for life. Buy a cheap, fun gun you can afford with cash now, shoot it all you can afford, and enjoy that. Save up for emergencies and future, cooler guns. The fact that you are even asking says you can't afford what you want to do.

Debt is self-inflicted slavery. Save it for when it's really functional; to buy a house to live in, a useful education that will pay for itself in the future, getting through emergencies when your funds have run dry, etc.

 

[Podmonkey]

You are going to dig a hole you're gonna have a hard time getting out of going like that. Trust me I learned the very hard way.
If you have a decent income take a chunk out of every paycheck and set aside as cash or a savings account. Let that build up to whatever ammount you need for whatever you are buying. I am about to buy a really high end scope tomorrow and I am not a rich man by any means. I did by saving up a hundred bucks here and there.

 

[MoMan]

Some very good advice being given here. We are all very fortunate to have this group to bounce ideas off of.