How tough is snap on credit?

[ngk22r]

it all comes down to being smart with your financial situation. A person can get into the same money trouble on the Snap-on truck as one can get going crazy in the Harbor Freight store. You guys (not all of you, and thanks Bull for your good posts) think that you will get screwed if you get Snap-on credit.

Chad and Mrshaun can back me up here or correct me at anytime:

If you get Snap-on credit because you choose to buy a box or tools with it, you can loan this money without paying a dime of interest through Snap-on credit. The secret is to not only pay on time, but pay ahead of schedule. Dont put yourself into a bind and borrow only that you know you can pay for. I have seen a tech get a loan through Snap-on credit and not pay interest and pay off the loan. He for one bought a new box, didnt wait for the grace period to pay, he made his first payment on the spot and stayed ahead of the schedule. Now he has a KRL7022 that he just paid the box amount, no interest.

Snap-on credit is not like a credit card. When you make a purchase through Snap-on credit the TOTAL interest is showed to you upon sale and the TOTAL you will owe if you make the basic payment. Thats it, no more, but can be less if you set yourself up for it.

Credit cards make interest for a set period of time and keep tacking it on to your total bill. Other tool trucks (not going to name names) work more like a credit card. Snap-on credit is upfront with what you owe.

 

[ngk22r]

My question is, how hard is the snap on credit to get for a toolbox. There are some pretty good rebates on boxes now, and the one he has on the truck retails for aroun 8k and its down to 5k I have read snap on has a creditstart program but not sure how it works.

You will need to talk to your Snap-on rep about if you can go on a normal Snap-on credit account, or the platinum. Different interest rates but only buy what you know you can pay for. Keep a can of will power with you (or if you need one pm me so I can send you a can, cost though is not cheap. Retail cost of genuine will power in a 12fl.oz can is $50.00)

Do your homework and ask questions, be dead sure before you sign. Credit can be your friend or your worste nightmare.

 

[5lima30]

+1 on the advice above! IMHO a shiny new SO box is not going to make you a better a mechanic, especially when you can get a reasonably priced HF box for cash.

 

[Boiler]

I love the snap on boxes. Not too hot on HF. You can find an excellent condition snap on box used for relatively little money $800-1200 pretty easily. If you do that, and you take care of it, you can sell it for basically the same amount in a few years when you decide you need to upgrade (or get out of it).

Buying new just ensures that if life doesn't go perfectly (as it usually does.... =p ) and you need to liquidate the box, you always end up taking a big hit.

Same goes for tools. Get excellend condition hard line snap on tools for half or less the cost of getting them on the truck by watching the classifieds here or doing ebay.

 

[BJ42LX]

it's my employer that has the defining right to increase my wage...

No. YOU are the one who decides how much money you make.

Want to earn more than you do now? It's up to YOU to make that happen. Nobody else.

 

[Walterchang]

Save up and buy a used one. You will save a lot of money that way.

 

[Chris Adams]

Just on how easy it is to get credit from SnapOn, I have a friend I've referenced before who has a small body shop. You could not have worse credit if you set out as a kid and tried.
I mean, you can not come up with anything he has not done to kill his credit score.
He does not care, hell, brags about charge offs bounced checks, (when they will let him open a checking account, which is seldom).
He has no legal assets, no steady income, his shop rent is ALWAYS one or two months in arrears, and that's in the good times.

His family won't lend him gas money.
I lend him money, secured by tools, cars, whatever. Then when he doesn't pay it back, he works off the dept, gets his car, tools, whatever back till next time. Notice, he doesn't actually ever pay me. That's in the time I've known him. 1974 to date.


SnapOn lends him money. He buys lots of tools on credit.

Now think about how much profit margin that has to be built into that credit for them to do that...

 

[nato]

No. YOU are the one who decides how much money you make.

Want to earn more than you do now? It's up to YOU to make that happen. Nobody else.

Too many variables. You can only do so much w/o switching places of employment..that's NOT an option for me.

 

[mrholeshot]

To the OP, Been where you are at so here is some advice. Take your 1500 and buy a used Snap-On box and put Snap-On credit in the wind. Keep a truck account and keep in good standing with the tool man. He can be a lifesaver in a pinch.

Start rebuilding your credit in small areas. go to a small finance company and borrow a small amount around 300 dollars. Make your monthly payments at twice the amount of the min payments but don't pay off early. You need a payment history. Then go to another place and do the same thing. This gives you multiple positives scores on your FICO report and slowly it will come up. Back in my youth I got in over my head with Kids coming, home loans, credit cards, furniture lons and such. After having my car repoed and coming close to losing my home I knew I had to make a change. It took me about 2 years to get my credit back to an acceptable level and by the 4th year I had a better FICO score than I started with before I screwed it up. Just commit yourself to repairing your credit and not aquiring things you want. It will cost you some in intresst but it's money well spent when it comes time to buy a new car. home or other high ticket item. Stay away from credit cards, it's aesy to get sucked right back in

 

[ramtuff]

Stay away from credit cards, it's aesy to get sucked right back in

I don't totally agree with that. Yes, it's very easy to get sucked in and max out your card, and overextend yourself, but if you use it properly it will be a big help to your credit. When I was younger, I killed my credit. I had gone to college, and took out a loan to cover some of the cost. Unfortunately, I had to drop out to help out at home when my father became very ill and could no longer work. It didn't take long before I defaulted on that loan, and had a judgment placed against me.

To help rebuild my credit, I got a credit card. It had a $500 limit, with a yearly $40 service fee, and I used the heck out of that card, but always made sure that I could pay the balance off at the end of the month. If I didn't have the cash to buy the item, I didn't extend my credit to get it...I went without it. That card led to me being credit worthy enough to get into a leased car for a couple years, which really boosted my credit rating, and today I have an excellent score, and a credit card with a limit that would get me out of a foreign prison if need be.

Credit cards are extremely useful credit building tools if used correctly. Of course, if someone can't handle having a card without spending beyond their means, they definitely should stay far, far away from them.

 

[mrholeshot]

I don't totally agree with that. Yes, it's very easy to get sucked in and max out your card, and overextend yourself, but if you use it properly it will be a big help to your credit. .

Remember he just ruined his credit. He doesn't have the disapline yet for a credit card. It's way to easy to spend money you don't see. Then they will keep increasing your credit every 6 months until before you know it you are in for 5K or more. Maybe in a few years but not just yet. Baby steps

 

[ngk22r]

12fl.oz can of will-power is on sale, now for $40.00

 

[chadster1]

12fl.oz can of will-power is on sale, now for $40.00

Do you offer a payment plan?

 

[mrholeshot]

12fl.oz can of will-power is on sale, now for $40.00

Can I get a case of that?

 

[78Bird]

Why can't you leave?

Certs not up to par? Work on them, get em done, then you CAN go... again, up to you.

A small CC would help rebuild your credit, you only buy what you have cash to pay for but you buy it with the CC and then pay it off every month, no interest.

I agree that the 20+% snapon credit is a big NO NO. And so what's wrong with a HF box or the like to start with? The tools themselves are more important to the livelyhood, and those are cheap and of decent quality and will suffice easily until he can warrant an upgrade.

You're young, if this is your chosen career then work on what makes you more valuable, and if the current boss won't move you up put out some feelers for other places.

If you feel locked into the place, post and maybe we can give advice there (or at least, commiserate with you)

 

[mrshaun]

I was told this same thing by my dealer, he has a good low delinquency rate or something its been easy as hell to finance tool boxesfor me and i dont have exceptional credit due to me being irresponsible in my slightly younger years.

i am platinum premier for two months running now and my guys that were once not able to be approved are getting approved on their own without the platinum account being used.

 

[jeffk14]

you get paid more with a snap on box - known fact

Oh really? Elaborate?

 

[wafrederick]

One dealer in the Bay City,Mi area was fired over this by Snap On.Put his customers on his route on this and they were not too happy about it.Snap On is not pushing prosecution on this,1.5 Million dollars so far.

 

[chadster1]

One dealer in the Bay City,Mi area was fired over this by Snap On.Put his customers on his route on this and they were not too happy about it.Snap On is not pushing prosecution on this,1.5 Million dollars so far.

Let me guess, you heard about this from cousins girlfriends uncles next door neighbor who is a Mac dealer.

 

[Drdaves49]

Oh really? Elaborate?

I agree.....ELABORATE?

 

[bobcatdan]

I'm going to throw this out, if you want a big new shiny box, the big protos are the same as a macizer, different drawer pulls and non spring loader casters. They are about $5500 from graingers which is always over priced. Look for another proto dealer and get a realistic price. The same box from mac is $8000 or so. I have a krl 1022, but if I knew about these boxes, I most of likely would have bought a proto. Taking a lower loan out from a bank or a cu is not a bad idea to help build credit.

 

[wafrederick]

Matco tool dealer told me this today.Snap On will not prosecute because of reputation.

 

[ngk22r]

Do you offer a payment plan?

you have to get approved through Snap-on credit first

Can I get a case of that?

A case!!! Damn, well it will take a little bit of time to gather up a case of will power, it just went on back order so what I have is all I got

 

[amt]

If you need a box, save and pay cash for a box, new or used, whatever you think is best. Credit should not come in the equation.

If you want to build your credit, then get a credit card like Snap-on, or basically any revolving credit card that will take you, and pay off the balance in full every single month. If you pay the balance (not just your payment) within the grace period, you should be charged no interest, ever. The point here is to use this card every month, but also pay it off every month. Your credit report will show the monthly balance you had for each statement, so it will look like you are maintaining a balance (which you are, but are wiping out the previous month's balance every month). This will help you build your credit. The credit card will eventually give you a higher credit limit, which will further improve your credit rating. Eventually you will be able to get a better credit card, one that might offer 2-3% back or some other reward.

The only time to ever have a "real" loan where you accrue interest is when you have absolutely no other choice. This is quite rare. A house purchase might be one case (hard for people to save for 20 years then buy a house). A house also in the long term appreciates in value. Another example is a vehicle, but honestly we should not do that either. If you ever have to do any of these, wait until you can get a much better rate (like 4-5% for a house these days and 3-5% on a vehicle).

 

[chadster1]

Matco tool dealer told me this today.Snap On will not prosecute because of reputation.

Yes, a Matco dealer would be an accurate source of information. Walter, you should really think about seeking professional help.

 

[BackTracker]

Yes, a Matco dealer would be an accurate source of information. Walter, you should really think about seeking professional help.

BAHAHAHAHAHA

 

[gloveman132]

Please DO NOT DO IT!

I too was lured by the shiny box and tools at a young age.

When I was young and broke I had to have new and shiny.

Now, when I can afford to pay cash for whatever I want, I purchase almost every tool used from Craigs List or ebay.

Heed all of the poster's warnings against debt, they speak the truth from hard earned experience.

 

[GeorgiaHybrid]

Matco tool dealer told me this today.Snap On will not prosecute because of reputation.

Yes, a Matco dealer would be an accurate source of information. Walter, you should really think about seeking professional help.

Walter, if you EVER have a comment that is based upon facts, how about putting it in bold letters so it will stand out. Do you still believe in the Tooth Fairy and Santa Claus? How about the Easter Bunny? After all, I'm sure your mom told you about them.....

 

[Busted Bolts]

If you now know where you screwed up with your credit, don't make the same mistake again! You will need to get your credit rating up right? Well you have been paying cash all along, so why don't you save for a particular item with SO, apply for credit (even if it's high), make the purchase, let a month go by, and pay it off. There is no early termination with SO, so you will bring your score up, so the next item you want to get something it might bring you to a lower rate due to you paying up SO early. I think the best credit rate is either 7-9%. Your young, so if Snap on is what you want, well go for it. If you build your credit back, aquire your tool stock early, well you've done some pre planning for your future. Yeah it is pricey, but you only live once, and if you know your gonna pursue this field in auto, well with in reason do it now so your not in debt with a big note when you are ready to buy a home. I'm sure you work hard, if buying new tools satisfys you for all your efforts then nows the time, but as some have stated here, there are some tools you'd be better off shopping around for and not have the sticker shock. Good luck

 

[Skin]

rapidly opening and closing lines of credit hurts a lot more than it helps. If he doesnt have a CC he'd be much better off finding a low interest CC [realistically probably 13-15% if they dont punish him for a poor credit score], applying for it, and using that for gas and groceries and the like [F charging any truck tools, pay in CASH] and paying off the balances in full every month. Why anyone would use SO credit at a 20% rate for already overpriced products is beyond me. So many companies can beat that and will gladly throw cards at you and many offer 6-12 months of 0%.

 

[ngk22r]

Why anyone would use SO credit at a 20% rate for already overpriced products is beyond me.

Thats why mine a long *** time ago was 12%, but when I paid it off, it turned out to be more like 3% interest.


Again how Snap-on credit works:

it all comes down to being smart with your financial situation.

If you get Snap-on credit because you choose to buy a box or tools with it, you can loan this money without paying a dime of interest through Snap-on credit. The secret is to not only pay on time, but pay ahead of schedule. Dont put yourself into a bind and borrow only that you know you can pay for.

The interest does not grow everymonth like a credit card, it is fixed. What you see is what you get.

 

[egdede]

Do you realise how much 20% interest is? Every month that $1000 you owe will ding you for an extra $200, so lets say you make $300 monthly payments, you'll have paid an extra ~$800 in interest ontop of the $1000 you owed.

I believe that is 20% over the year; maybe $16 bucks or so the first month.

 

[chadster1]

I agree 1000% percent will Bull. Please dont take this the wrong way but you are not someone that should be looking at truck tools, let alone financing them on ****** interest rates. Do you realise how much 20% interest is? Every month that $1000 you owe will ding you for an extra $200, so lets say you make $300 monthly payments, you'll have paid an extra ~$800 in interest ontop of the $1000 you owed.

Wait till you have the cash to buy it outright or dont buy truck tools at all. If you come back with a response like "i'll have paid it off within the month" then save for that month instead and just buy it.

You obviously have absolutey no idea how interest is figured. You are figuring a 240% annual percentage rate in your example, not a 20% annual percentage rate. In Texas, it's an 18% APR which works out to 1.5% a month figured on the unpaid principal balance.

Edited to add: An example contract in Texas for $1000 paid out over 52 weeks has a weekly payment of $21.04 which works out to less than $100 interest paid over the course of a year.

 

[Skin]

i stand corrected. i never pay interest. ever.

 

[csargents1546]

From personal experience, they are a little stingy when you have bad credit(been there) The SO rep at school approved me, BUT it required a 10% down on whatever I purchased. Their intrest rate is WAY to high. I paided it of and now I just deal with truck accounts. Plus that is intrest free. I try to keep my accounts under 300 each. Doing things with cash is much easier. Just my .02 cents

 

[chadster1]

i stand corrected. i never pay interest. ever.

Good for you. A person with damaged credit like the OP is not going to qualify for a credit card with the interest rates you quoted in an earlier post. In today's market, he will be lucky to qualify for any card with a rate less than 20% APR.

 

[Busted_Knuckles]

20 years ago, I was into snap-on for around $35k, I had to learn the hard way, now I buy my snap-on used, but like new from techs that buy stuff they cant afford.

I guess some of us just have to learn the old fashioned way. Nowadays, if I cant pay cash for it, I dont buy anything, and that includes vehicles and equipment.

I have yet to take a photo of it, but just before Christmas, I brought home a S/O plasma cutter for a $1000. Its like new, less the box. Its still on the website for $4039.00. Do I need a plasma cutter, hell no, but at the price, I thought it would be a nice toy.

 

[Hiball]

i stand corrected. i never pay interest. ever.

Never? You Rent? Live with your Parents? Or our you Just Loaded?

You obviously have absolutey no idea how interest is figured. You are figuring a 240% annual percentage rate in your example, not a 20% annual percentage rate. In Texas, it's an 18% APR which works out to 1.5% a month figured on the unpaid principal balance.

Edited to add: An example contract in Texas for $1000 paid out over 52 weeks has a weekly payment of $21.04 which works out to less than $100 interest paid over the course of a year.

Its funny how many people dont understand how Loans work, Most people have to learn the hard way. I know its been said before but Kids in school really should be taught the basics, Its Sad and i suspect it was a big contribution to our current economic sitsuation. Gotta Love those Easy Payment...

 

[Skin]

Good for you. A person with damaged credit like the OP is not going to qualify for a credit card with the interest rates you quoted in an earlier post. In today's market, he will be lucky to qualify for any card with a rate less than 20% APR.

That has absolutely nothing to do with why i suggested a CC vs SO credit. I suggested a CC because it can be used daily in place on cash, again such as on gas and groceries. SO credit is only good for extravagantly priced tools.

It really depends how much of a risk the lender feels he is. With most 20% is worst case scenerio unlike SO which, as you stated, is a sure bet to be 18-20, maybe even more.

Never? You Rent? Live with your Parents? Or our you Just Loaded?

I suppose "never" is too strong. However to answer your question i rent. Everything i buy is in cash or charged and immediately paid off. This includes cars.

 

[chadster1]

That has absolutely nothing to do with why i suggested a CC vs SO credit. I suggested a CC because it can be used daily in place on cash, again such as on gas and groceries. SO credit is only good for extravagantly priced tools.

It really depends how much of a risk the lender feels he is. With most 20% is worst case scenerio unlike SO which, as you stated, is a sure bet to be 18-20, maybe even more.

20% on a credit card is nowhere close to being a worst case scenario. The average rate is now around 17%