Using lines of credit to purchase cards

[glchen]

I'm w/ the crowd that thinks it's too dangerous. It is always very tempting when you see a card that you really want, or one doesn't come around very often or even one that you think is underpriced and that you can do a quick flip on. However, it's very easy to get yourself into unsustainable amounts of debt very quickly, and then you need to do a firesale on your cards where you lose even more money. As others have said, it's best to just spend what you have.

[cubsguy1969]

I'd be afraid to use a credit line for collecting -- too much temptation (for me anyway; I'm a weak man). But for business purposes, it seems like it could be beneficial. My ebay business is fairly small and I don't typically have a lot of cash on hand. So if I should stumble upon a large collection of cards or books or records or whatever, and the price is right, I'd hate to miss the opportunity.

A couple months ago I bought a huge collection of those Easton Press leather bound books for 2 grand. In that case, I happened to have the cash available. But if I didn't, a credit line sure would have been helpful. I sold the collection for nearly 6 grand within a month so I would have been able to pay it off pretty quickly.

I guess we're talking about two different animals. Or at least I am.

[rainier2004]

So I use credit now...

We have an interesting situation in that I have access to the majority of our retirement, anytime, without penalties for 30 days. Im not a CPA, and this is personal, its just the way its CURRENTLY set up.

I have used this "credit" 3 times...2 5k+ CJ lots and a couple e107s. This credit is my only advantage in the market. I can bid lots for what I think they are worth. I had to resell tons of cjs to put the money back, plus I make the payments as well. The e107s we kept. The first CJ lot took 6 weeks to finish, but after 4 weeks the debt was well below 1k and the fees were small. Im am now 10 days into experiment 3 and things are going well and really hinge on the sale of a single matty. I cannot afford to pay 65-100 for a cj common as they are all over the place now, and my fee were a couple bucks. BNow, I can buy 50 or 60 cjs and sell those i dont need for a fair price and pay the rest for what I keep and I always get to decide what I keep. I also downgrade my set, if appropriate, and am just trying to make it to 177(I count the Chance as part of the set). I do it to fuel my hobby...I dont buy cards to make money, but I want my cjs so this idea was the result with the best results.

It was scary the first time, this time I had a $6600 debt and didnt bat an eye. It bothers me somewhat that I feel there is always an angle now...but Ive met tons more great guys on here(Hola Jared, David, Mac, Andrew, Toby, JR and Mr. Barry ) doing this and enjoy selling cards as well as it fulfills the fix for me. I would NEVER buy a card "because i just had to have it" but honestly, I wish I had started doing this earlier.

[zljones]

Originally Posted by rainier2004

So I use credit now...

We have an interesting situation in that I have access to the majority of our retirement, anytime, without penalties for 30 days. Im not a CPA, and this is personal, its just the way its CURRENTLY set up.

I have used this "credit" 3 times...2 5k+ CJ lots and a couple e107s. This credit is my only advantage in the market. I can bid lots for what I think they are worth. I had to resell tons of cjs to put the money back, plus I make the payments as well. The e107s we kept. The first CJ lot took 6 weeks to finish, but after 4 weeks the debt was well below 1k and the fees were small. Im am now 10 days into experiment 3 and things are going well and really hinge on the sale of a single matty. I cannot afford to pay 65-100 for a cj common as they are all over the place now, and my fee were a couple bucks. BNow, I can buy 50 or 60 cjs and sell those i dont need for a fair price and pay the rest for what I keep and I always get to decide what I keep. I also downgrade my set, if appropriate, and am just trying to make it to 177(I count the Chance as part of the set). I do it to fuel my hobby...I dont buy cards to make money, but I want my cjs so this idea was the result with the best results.

It was scary the first time, this time I had a $6600 debt and didnt bat an eye. It bothers me somewhat that I feel there is always an angle now...but Ive met tons more great guys on here(Hola Jared, David, Mac, Andrew, Toby, JR and Mr. Barry ) doing this and enjoy selling cards as well as it fulfills the fix for me. I would NEVER buy a card "because i just had to have it" but honestly, I wish I had started doing this earlier.

That is smart as hell and it boosts your score tremendously. I have never thought of that idea. It's too late for me, but man keep at it, that is very smart, I do not know if you checked your credit score lately but you may have a score above 800 doing things that way

[HOF Auto Rookies]

I do not have a personal line of credit, no need for one. I feel I am doing very well with my spendings and limitations, and as much as I hate it, I'm trying to sell more cards to help upgrade or add new pieces to my collection. Got hit hard get a very nice signed 1940 PB of Ted Williams and Mays, Aaron and Koufax signed rookies.

If something comes up that I HAVE to get for my collection, I will consider a line, or borrow from someone. But can't imagine using thousands and thousands of dollars. The thought is too scary that it'll get out of hand into something worse.

[Ronnie73]

I've never used a line of credit for collectibles. I'm neither for or against it. If it's used on the right purchases, a profit could be made along with paying the loan off. I tend to ask if a layaway plan is available if its a high priced card or large lot. You would be suprised at how many of the larger sellers offer it. Some at no interest if paid within three months, others that have interest around the same rate as a line of credit. It never hurts to ask if a layaway plan is offered. Worst thing that could happen is they tell you no. Another nice thing is that it does not mess with your credit score.

[Gradedcardman]

I have aline of credit should it become necessary. This hobby is also a part time business for me. I love the hobby side but I use it to make money as well, just ask paypal !! Haven't used the LOC as I haven't found that "big deal" where the extra was needed. But I won't hesitate if I need it.

[cubsguy1969]

Would you mind sharing how you set it up? Is it a business line of credit? My accountant mentioned the possibility to me once but I have yet to pursue it. It's on my (long) list of things to do.
From the sounds of it, it wouldn't be difficult. My credit's pretty good, so I don't think there are any worries there.