I need a new PC! Where do I even start?

I’m thinking about picking up a new computer for about $1833! I’ve got my checking account set up over at Chase and I’m using a Maestro card... I was wondering, though—how long do I basically need to have a steady income before I can pull off a purchase like that? I was kind of hoping to stretch it out over 24 monthly installments... or maybe there's a specific type of contract I need with my employer—like, does it matter if I'm permanent staff versus a contractor—to make that happen?

thanks!

You’ll need to get an overdraft protection limit approved on your checking account first, which essentially requires you to have a permanent, full-time employment contract in place. Once you’ve checked that box, you can start looking into using a Maestro card for installment payments.

But let's be real, you aren't going to be stretching those payments out over 24 months; you'll be lucky if you can squeeze them into six, assuming the merchant even offers an installment plan to begin with.

If you want my honest advice, just go ahead and apply for an Amex card, because that's the only way you'll actually be able to consider a repayment period that long.

You don't necessarily need a permanent contract—just a letter from your employer confirming they’ll be depositing your pay into that specific checking account. With that, you can get checks (I believe they typically start you off with just five), and the maximum amount you can write on a single check is $333. This means if you're looking at a computer worth $1833, you could spread it over a maximum of six installments: $167 (minimum) in cash, then the rest covered by those five checks.

The thing you mentioned in your first post—those 24 monthly payments—that’s actually a consumer loan. For that, you'll need your three most recent pay stubs, an employment verification form, and two co-signers. You don't even have to be a customer at the bank providing the loan, provided the shop where you're buying the computer has a partnership with them. The process usually goes like this: you get a quote for the computer at the store, take that along with your paperwork to the bank (and a notary), and once they approve the credit, you head back to pick up the machine. The bank pays the vendor directly, and you handle the monthly payments at the bank. If you miss one, well... you know how things go for the co-signers. 🙄

Seriously though, what kind of complications are we even talking about? It feels like we’re all just being blamed for everything... I guess if I were picking a place to shop, I’d probably head over to General Mills. I mean, I assume you need a decent credit score or some sort of established history to even use an Amex, right?

Well, damn... looks like my computer is toast... at least for now... especially considering this paycheck and my current contract... thanks for the help, though... 👍

George Barrett35 said:You HAVE to have a permanent employment contract.

And your math on the checks doesn't quite add up. $333 is the maximum amount for a single check, not the minimum. So theoretically, he could pay with 24 checks—with some change left over—but in practice, nobody is accepting that many individual checks.

Sure, a consumer loan is an option, but that’s why I suggested trying American Express—it’s easily the simplest route (you can get credit at Best Buy via American Express) without having to visit a bank, a notary, or any other bureaucracy. You just pick out the gear, swipe the card at the register, and select your repayment term. Just keep in mind that such a computer will end up costing you closer to $7,000 rather than $5,500.

Your average salary should be at least $3,200—though even then, it isn't a guarantee they'll approve you. Having your paycheck deposited at Chase helps a little...

YOU DON'T NEED A PERMANENT EMPLOYMENT CONTRACT. I bought my first computer using checks back in 2001, and didn't sign a permanent employment contract until late 2004.

Regarding the checks, I noted that they would likely only give him five initially. That's why I mentioned he could buy the computer in six installments—the first one in cash, the rest covered by those five checks. I forgot to mention that he wouldn't even get those five checks until his third paycheck hits the account.

If he can't qualify for checks, there's no way anyone is giving him an American Express. The process for getting a credit card is significantly more complicated than taking out a consumer loan (there's less running around and no need for guarantors, but you need more paperwork and stamps). Plus, there are application fees, annual dues, and commissions that aren't exactly small. As you said, instead of paying 5,500, he'll be paying 7,000—and for that kind of money, I'd rather deal with a notary once or twice if I had to.

Just grab a Diners Club card; you're definitely going to get approved.

rapidsailor46, look, you really need to have a permanent employment contract in place. You’re acting like it’s 2001 when you bought that computer on checks, but we’re in 2008 now and the landscape has shifted. Or maybe we're just talking about different banks entirely. This guy has an account at Chase, and I'm specifically talking about Chase. Sure, you can get up to 20 checks, but you absolutely have to have the funds sitting in your account to cover every single one issued (roughly $333 per check). Even if you're only pulling five checks, you still need the full coverage, which basically implies you already have enough liquid cash to pay for the whole thing upfront anyway.

To land a credit card—specifically an American Express—you don't actually have to jump through any special hoops. All you need to do is fill out the application and attach a couple of pay stubs. It all boils down to your income level; whether or not you have a permanent employment contract isn't even the deciding factor here. There's no need for notaries, co-signers, endless paperwork, official seals, or Bon 2 forms...

When I mentioned the company would be paying $7,000, I was factoring in the interest over those two years. They aren't going to save a dime by opting for a standard consumer loan because the interest rate spreads are practically non-existent, and honestly, those secondary loans often end up carrying even higher rates.

George Barrett35 said:rapidsailor46, look, you really need to have a permanent employment contract in place. You’re acting like it’s 2001 when you bought that computer on checks, but we’re in 2008 now and the landscape has shifted. Or maybe we're just talking about different banks entirely. This guy has an account at Chase, and I'm specifically talking about Chase. Sure, you can get up to 20 checks, but you absolutely have to have the funds sitting in your account to cover every single one issued (roughly $333 per check). Even if you're only pulling five checks, you still need the full coverage, which basically implies you already have enough liquid cash to pay for the whole thing upfront anyway.

To land a credit card—specifically an American Express—you don't actually have to jump through any special hoops. All you need to do is fill out the application and attach a couple of pay stubs. It all boils down to your income level; whether or not you have a permanent employment contract isn't even the deciding factor here. There's no need for notaries, co-signers, endless paperwork, official seals, or Bon 2 forms...

When I mentioned the company would be paying $7,000, I was factoring in the interest over those two years. They aren't going to save a dime by opting for a standard consumer loan because the interest rate spreads are practically non-existent, and honestly, those secondary loans often end up carrying even higher rates.

Correction,

if he uses an American Express installment plan for 24 months, the amount of $1.75 becomes $85 per month plus $28 for a one-time fee.
So, after 24 months, he’d have paid American Express 24 x 253.74 = 6,089.76 + 82.50 = $2058 total... definitely not 7000. 😁

Alright, thanks for the correction...
I was just talking out of my ass there for no reason.

George Barrett35 said:rapidsailor46, look, you really need to have a permanent employment contract in place. You’re acting like it’s 2001 when you bought that computer on checks, but we’re in 2008 now and the landscape has shifted. Or maybe we're just talking about different banks entirely. This guy has an account at Chase, and I'm specifically talking about Chase. Sure, you can get up to 20 checks, but you absolutely have to have the funds sitting in your account to cover every single one issued (roughly $333 per check). Even if you're only pulling five checks, you still need the full coverage, which basically implies you already have enough liquid cash to pay for the whole thing upfront anyway.

To land a credit card—specifically an American Express—you don't actually have to jump through any special hoops. All you need to do is fill out the application and attach a couple of pay stubs. It all boils down to your income level; whether or not you have a permanent employment contract isn't even the deciding factor here. There's no need for notaries, co-signers, endless paperwork, official seals, or Bon 2 forms...

When I mentioned the company would be paying $7,000, I was factoring in the interest over those two years. They aren't going to save a dime by opting for a standard consumer loan because the interest rate spreads are practically non-existent, and honestly, those secondary loans often end up carrying even higher rates.

I'm not sure how they handle things at Chase (I have a checking account there, though my salary isn't deposited there, so I don't deal with checks or overdrafts), but at my firm of 14 employees, only four of us are full-time permanent staff. However, everyone who has been with the company for more than three or four months has access to checks. Most of us receive our pay via EBS or the Federal Reserve. Actually, a Federal Reserve representative visited our office about six months ago, trying to convince all the employees to switch their payroll over to them. One of their main selling points was precisely the ability to issue checks and access overdraft protection regardless of any limitations in your employment contract. Some of the newer staff made the switch (for me, having a reliable ATM network is far more important than having a massive overdraft limit I'd never be able to repay... 🙄). So, being a permanent employee isn't actually a prerequisite for getting an overdraft or checks.

Regarding coverage—I currently receive 10 checks (though the teller told me they could approve two more if I submit a written request). My income has never exceeded $1500, so that isn't a requirement either.

To get a credit card—specifically an American Express—you don't need to go through some elaborate ordeal. You just fill out the application and attach your pay stubs. It all comes down to your income level, not whether you have a permanent employment contract or whatever else. No notaries, no guarantors, no endless paperwork or stamps...

When I applied for an American Express, the woman at Chase (perhaps because my salary doesn't land there?) asked for three pay stubs plus a copy of my employment contract or a letter from my company confirming my job. She also handed me two long forms that I had to get filled out and stamped by my employer. (As for notaries and guarantors, I wasn't even discussing credit cards at the time, but rather consumer loans).

When I mentioned the computer would cost 7000, I meant the total price including interest over those two years. You won't save anything with a standard consumer loan in that case, as the interest rates aren't significantly different. Often, those secondary loans carry even higher rates.

That's my point. Beyond the interest, you're hit with an application fee of about $40 when the card is approved, plus an annual fee of around $83. You're paying that whether you use the card or just let it sit in a drawer for a year without making a single transaction.

And yes, it is absolutely true that consumer loans are often less favorable than credit card financing.

Anthony Perez7 said:I’m thinking about picking up a new computer for about $1833! I’ve got my checking account set up over at Chase and I’m using a Maestro card... I was wondering, though—how long do I basically need to have a steady income before I can pull off a purchase like that? I was kind of hoping to stretch it out over 24 monthly installments... or maybe there's a specific type of contract I need with my employer—like, does it matter if I'm permanent staff versus a contractor—to make that happen?

thanks!

You can't just pull 5 million out of thin air while working 😲. I don't work, yet if I ever needed it, I could probably scrape together 50 bucks
Give me a break, man. Nobody gets rich just by working hard. Spare an old man some sympathy....🙏.....😂

Wouldn't that work if I just used a green American Express? You know, the one where they claim it's interest-free and fee-free for meals.

The only catch is that annual fee, which sits at about $67.

Sure, regarding that American Express. But you have to realize that interest-free installment plans aren't just some automatic setting; they're an option. It all comes down to the merchant—some offer it and others don't, or sometimes they only bring it out during specific promotional events or sales.

Some people get it, some don't.

My setup with Erste Bank ECMC works perfectly—I can grab cash from any ATM, domestic or abroad, and everything I charge goes onto an installment plan (just 5%-25% of the balance each month). There’s no "maybe" about it. It just works. Every single time.

Does American Express offer anything similar?

If American Express sucks, would it be smarter to go with Diners Club or a Visa card?

I'm slowly winding down my accounts at Erste and ECMC since I've moved over to Chase. So, what card should I grab?
I need to figure this out before I put in the application on Monday.

You aren't looking at an installment plan here, you're dealing with a credit line because it’s clearly a revolving card. If you’re set on using Amex, your best bet right now is grabbing the Delta SkyMiles card since they waive the annual fees for the first year.

The monthly interest rate sits at 5%.