How tough is snap on credit?

[Skin]

Then you're looking at the wrong lenders.


anway besides the point, CC that you'll use responsibly for every day purchases > SO for rebuilding credit.

 

[chadster1]

Then you're looking at the wrong lenders.

You have not been keeping up with the credit markets.

 

[Mike14k]

all I can say is...

google "Dave Ramsey" when it comes to credit questions.

 

[chadster1]

Then you're looking at the wrong lenders.


anway besides the point, CC that you'll use responsibly for every day purchases > SO for rebuilding credit.

If he can even get one since the op stated that credit cards are the reason his credit is less than perfect now.

 

[Gasser Built]

I was on the same boat as OP.
I have several collections and bad credit. I asked my snap-on dealer if there was a chance for me to get approved. He only asked if I owe child support, S.O. Credit and/or filed bankruptcy. I said no. 15 minutes later I was approved at 18% interest rate. Gave me $1250 off on a brand new KRA2411 with $30 down. After taxes and financing fees my box came up to $41XX.00, $27 dollars a week for 4 years.
Do I have any regrets? only one, I should had given a bigger down payment

 

[chadster1]

I was on the same boat as OP.
I have several collections and bad credit. I asked my snap-on dealer if there was a chance for me to get approved. He only asked if I owe child support, S.O. Credit and/or filed bankruptcy. I said no. 15 minutes later I was approved at 18% interest rate. Gave me $1250 off on a brand new KRA2411 with $30 down. After taxes and financing fees my box came up to $41XX.00, $27 dollars a week for 4 years.
Do I have any regrets? only one, I should had given a bigger down payment

Make a bigger payment anytime you can.

 

[Hiball]

Make a bigger payment anytime you can.

+1 Yes. Anything extra you pay on top of your Normal payment goes towards the Principle outside of some crazy drawn up Installment loan/Revolving account. ( <------ Yes.. There are some out there, That put limits on how fast you can pay of your loan, etc.)

 

[evildky]

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.

Actually you don't know how interest work's. The stated rate is 20% APR (that means Anual Percentage Rate). 20% of 1000 per year is 200 a year, but a 20% APR will have a much lower APY (Anual Percentage Yield) due to the declining balance,$1000 at 20% over 12 months the payment is 92.64 the interest on month one is only 16.67, on the 12th equal payment of 92.64 only 1.52 is interest, only 111.60 total is paid in interest giving us an apy of only 11% which is why they want to keep you buying to keep their yeild up, I kinda do finance

 

[ngk22r]

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

Problem is that you went to a rep at a school. Yes they can give you a killer deal on the tools themselves but the truck dealer works better with the financing.

You guys are compairing a non-secured credit card to a Snap-on Credit which is secured.

If you default on a credit card it is different then if you default on Snap-on credit. The credit card companies will call you and harrass you everyday until they try to take you to court. Snap-on will come and pickup the tool box if you are in default for a set period of time if you do not work with them to pay off the debt.

I knew another person who had a Snap-on credit account and due to the economy was starting to fall behind. And I can say that he told me that Snap-on credit was alot easier to deal with on the phone then the credit cards. He managed to turn things around and keep his stuff after he worked out a plan with the Snap-on credit but I think his interest went up a bit though.

I would say that if the OP knows what he can pay for and can faithfully pay what he owes and would agree too, and if he truely want said things from the truck, that is his choice that he will have to live with. And he will have the things he wants and help fix his credit so long as he makes a budget and sticks to it. There is nothing wrong with going with a Snap-on credit, just two things, act your wage and dont live beyond your means.

Again, do your home work, be sure what you buy will be what you want after its paid off, bargin shop, work on the deals, dont take the first offer, buy a can of will-power from me if you need some, and just be 1000% sure before you sign on the dotted line. Also see if the dealer has any nice used Snap-on boxes he can cut a deal with you on. Check his trade in inventory as well. I just picked up a freshly rebuilt 3/8's Snap-on impact that he wanted $150 for and I got him to take a little less. Picked up used 800 series Snap-on ratchets cheap from him as well from people who traded them in for the Dual 80's and got those for a killer deal. Snap-on credit can be a great tool, as is the RA account as well. Just play it smart.

Otherwise save your money scout CL, ebay, GJ for deals on tools and boxes.

This choice falls upon you and only you. You dont need a brand new tool box and tools, but if it is what you want, then work hard for it.

 

[ramtuff]

You guys are compairing a non-secured credit card to a Snap-on Credit which is secured.

If you default on a credit card it is different then if you default on Snap-on credit. The credit card companies will call you and harrass you everyday until they try to take you to court. Snap-on will come and pickup the tool box if you are in default for a set period of time if you do not work with them to pay off the debt.

How is Snap-on credit secured? There's absolutely nothing stopping the person from selling off their box and tools, then there's nothing for Snap-on to come repo. A car loan, where the finance company holds the title, is secured. Snap-on, where the person in default can sell his tools to the guy down the street, is not.

Btw, there are secured credit cards. You have to have a savings account to cover the credit limit on the card, and you can't touch the balance of that account. That way, if you default on the card, they can seize the account.

 

[allinon72]

It pains me to see folks being saddled with 18%+ interest rates, on TOOLS no less. I have CCs with interest rates less than half that.

 

[ngk22r]

How is Snap-on credit secured? There's absolutely nothing stopping the person from selling off their box and tools, then there's nothing for Snap-on to come repo. A car loan, where the finance company holds the title, is secured. Snap-on, where the person in default can sell his tools to the guy down the street, is not.

The box has a serial number on it, like a car has a vin number.

What stopping someone from getting a car, then parting it out? Or shipping it to another country?

The secured loan from Snap-on credit or a car loan gives them more power to get back their loss over credit card.

 

[Toolhorder]

Whatever you do don't screw up with Snap on after you get credit with them or they'll deny you forever later.
Back in 98 I lost a job and went 60 days late and they tried to repo the box. I got paid from the next job I found and promptly paid the box off (800 owed on a 4200 box)
That was 13 yrs ago. Now I have a low 700 credit score and they denied me on a scan tool and told my dealer because of a 60 day late 13 years ago they wouldn't give me credit unless my dealer will take the loss. Dealer still wants to make a deal if I put down a lot more but at that point I could get a loan from my credit union or use a credit card to buy it. Snap On's credit dept. *****.

 

[ngk22r]

..and then you can also be arrested for fraud and theft. And the poor schmuck you sold it too could also get in trouble if caught for receiving stolen property.

Mess around with a secured debt get repo'd or a criminal record.

Mess around with a credit card, ruin your credit, go into collection, possible garnishment, unless you declare bankruptcy then you could walk away clear with just a hit on your credit. Pull that with a secured loan like a car or truck account, they will get something from you.

 

[wornoutoldman]

I won't mention how much money I've spent with SO over a career except to say it is likely in the upper 5% of folks on this forum. Regrets? Not while I was working and earning. Half a lifetime later with a 20-20 hindsight I'd do it a little different. I would have spent less for Box(es) and had ebay, craigslist and forums like this been around every tool purchase would have been second hand. Save your cash. Spend wisely and don't get seduced by the shineyness and bling. You'll thank yourself for your good judgement when your older. Good Luck!

 

[ramtuff]

The box has a serial number on it, like a car has a vin number.

What stopping someone from getting a car, then parting it out? Or shipping it to another country?

The secured loan from Snap-on credit or a car loan gives them more power to get back their loss over credit card.

Having a serial number on it doesn't make it a secured loan. If that tool box gets sold to the guy down the street, there's no collateral for Snap-on to take back if the original purchaser defaults. No collateral = unsecured. It would be a different story if toolboxes came with titles, and Snap-on held the title until it's paid off. And what about their other tools...ratchets, sockets, etc...they don't have serial numbers. It's no different than buying something with a unsecured credit card, then selling it without paying off the card. Both are unsecured forms of credit.

 

[ngk22r]

Having a serial number on it doesn't make it a secured loan. If that tool box gets sold to the guy down the street, there's no collateral for Snap-on to take back if the original purchaser defaults. No collateral = unsecured. It would be a different story if toolboxes came with titles, and Snap-on held the title until it's paid off. And what about their other tools...ratchets, sockets, etc...they don't have serial numbers. It's no different than buying something with a unsecured credit card, then selling it without paying off the card. Both are unsecured forms of credit.

as I posted before:

..and then you can also be arrested for fraud and theft. And the poor schmuck you sold it too could also get in trouble if caught for receiving stolen property.

Mess around with a secured debt get repo'd or a criminal record.

The "title" is the piece of paper you sign for the tool box, you dont pay, they will repo it because it is a secured loan. You sell it to someone else to then stiff Snap-on credit is FRAUD!! The serial number is there for a reason. Do you think Snap-on will just hand out tool boxes on an unsecured loan so it would make it easier for people to stiff them??

Hindering a secured creditor is a criminal offense. Selling financed property without paying the lienholder is also known as hindering the secured creditor and punishable by law, which in most states means jail time.

-A person who has signed a security agreement creating a
security interest in property or a mortgage or deed of trust
creating a lien on property commits an offense if, with intent to
hinder enforcement of that interest or lien, he destroys, removes,
conceals, encumbers, or otherwise harms or reduces the value of the
property.

-A person who is a debtor under a security agreement, and
who does not have a right to sell or dispose of the secured property
or is required to account to the secured party for the proceeds of a
permitted sale or disposition, commits an offense if the person
sells or otherwise disposes of the secured property, or does not
account to the secured party for the proceeds of a sale or other
disposition as required, with intent to appropriate (as defined in
Chapter 31) the proceeds or value of the secured property. A person
is presumed to have intended to appropriate proceeds if the person
does not deliver the proceeds to the secured party or account to the
secured party for the proceeds before the 11th day after the day
that the secured party makes a lawful demand for the proceeds or
account.

 

[ramtuff]

Whether or not you sell the box, ratchet, whatever tool, you're still on the hook for the money. You can buy a ratchet from the Snap-on man, turn around and sell it to someone else for a dollar, and it's not theft. You still owe the money. If you don't pay, then it is...it doesn't matter if the item is still in your possession or not. You can legally transfer ownership of that ratchet, box, etc. to someone else before that loan is paid off, and there's not a damn thing Snap-on can do about it. That's unsecured credit. You can't do that with a house or car...the loan has to be paid in full before legal ownership can be transferred. That's secured credit. I can tell you've never worked in loan origination for a living. Beat your drum all you want, but you're playing the wrong tune.

 

[ngk22r]

You can legally transfer ownership of that ratchet, box, etc. to someone else before that loan is paid off, and there's not a damn thing Snap-on can do about it. That's unsecured credit. You can't do that with a house or car...the loan has to be paid in full before legal ownership can be transferred. That's secured credit. I can tell you've never worked in loan origination for a living. Beat your drum all you want, but you're playing the wrong tune.

Obviously you never signed a contract for a tool box... Obviously you did not read the law I posted about this kind of SECURED LOAN!!

 

[ramtuff]

Have I signed one of those contracts? Hell no. Nor will I ever. Have I read them? Yes. No where in the ones I've read does it say you can't sell your tools. And yes, I read the law quote you posted. It doesn't apply here. As I said, you can sell your tools and your box, but you still have to pay Snap-on. If you fail to pay Snap-on, then that's where the problem lies. Anyway, I'm tired of arguing...keep believing what you want, and I'll do the same.

 

[ngk22r]

Have I signed one of those contracts? Hell no. Nor will I ever. Have I read them? Yes. No where in the ones I've read does it say you can't sell your tools. And yes, I read the law quote you posted. It doesn't apply here. As I said, you can sell your tools and your box, but you still have to pay Snap-on. If you fail to pay Snap-on, then that's where the problem lies. Anyway, I'm tired of arguing...keep believing what you want, and I'll do the same.

Let chadster and mrshaun chime in

 

[chadster1]

Have I read them? Yes. No where in the ones I've read does it say you can't sell your tools.

I guess you did not read section 5.

5. Grant of Security Interest. As security for your obligations under this Agreement, or any other agreement with Dealer or Dealer’s assignee, you hereby grant Dealer a purchase money security interest in each item of Property you purchase under this Agreement until that item is paid for. As further security for your obligations under this Agreement, in all states except where prohibited by applicable law for agreements of this type, you hereby grant Dealer a security interest in each other item of tools, goods and equipment previously purchased or hereafter acquired from a Snap-on Dealer, and any and all goods and equipment manufactured or distributed by Snap-on Incorporated or bearing Snap-on Incorporated trademarks or logos, together with all proceeds (including insurance proceeds), accessions, attachments, additions, substitutions and replacements to and of such items (the foregoing and the Property are collectively referred to as “Collateral”). If this Agreement is assigned to Snap-on Credit pursuant to Section 6 below, and if the Amount Financed includes a transfer of RA balance owed to Dealer, then Dealer hereby assigns to Snap-on Credit any purchase money security interest that Dealer may have in any merchandise reflected in the RA balance so transferred. In such case, Snap-on Credit shall continue to hold a purchase money security interest in such merchandise after such transfer. You agree not to remove any Collateral from the state where the original sale was made without the written consent of Dealer or Snap-on Credit, if this Agreement is assigned to Snap-on Credit. You agree not to sell, dispose of or encumber any Collateral until your entire balance due is paid in full. To the extent permitted by and subject to applicable law, you agree and hereby grant to Dealer and Snap-on Credit or its agent or assigns the power of attorney and right to sign on your behalf and file or record such financing statements or other documents as may be necessary to perfect or maintain the security interest granted by you under this Agreement.

 

[pipsters]

I was on the same boat as OP.
I have several collections and bad credit. I asked my snap-on dealer if there was a chance for me to get approved. He only asked if I owe child support, S.O. Credit and/or filed bankruptcy. I said no. 15 minutes later I was approved at 18% interest rate. Gave me $1250 off on a brand new KRA2411 with $30 down. After taxes and financing fees my box came up to $41XX.00, $27 dollars a week for 4 years.
Do I have any regrets? only one, I should had given a bigger down payment

You paid $5600 for something that probably won't be worth $1,000 4 years later

 

[johnsdeere850j]

You paid $5600 for something that probably won't be worth $1,000 4 years later

It was worth it.

 

[jsonic6]

Buy what you can afford...

 

[johnsdeere850j]

Buy what you can afford...

This ^^^^ Dave Ramsey

 

[ramtuff]

I guess you did not read section 5.

I stand corrected. My apologies to ngk22r. You're right, and I'm wrong.

I'm sure the contracts are uniform for all distributors, so has that clause been added at some point, because I'm certain the ones I've read didn't have that in them.

 

[chadster1]

I stand corrected. My apologies to ngk22r. You're right, and I'm wrong.

I'm sure the contracts are uniform for all distributors, so has that clause been added at some point, because I'm certain the ones I've read didn't have that in them.

I have one from 1989 that uses basically the same language.

 

[ramtuff]

I have one from 1989 that uses basically the same language.

Thanks. Looks like I'm just flat-out wrong then.

 

[ngk22r]

I stand corrected. My apologies to ngk22r. You're right, and I'm wrong.

I'm sure the contracts are uniform for all distributors, so has that clause been added at some point, because I'm certain the ones I've read didn't have that in them.

No apologies needed, now you know


If anything if the OP chooses to get a new box, he will now have the motivation from his peers and from Snap-on credit to pay faithfully for the stuff he puts on credit. Nothing worse than having your peers watch your stuff get taken away because you were not good in keeping a financial promise.

 

[mvslay]

Uh-oh. That's going to raise some hackles.

Thumbs up to buying the HF box or a quality used box. If you borrowed 2,500 and paid 200 a month at 18% you'd end paying over 500 in interest and it will take longer than 5 years to pay off.

 

[sberry]

You got to love the logic, sigh up to spend money i havnt got for something I dont need for the purpose of building credit for more stuff I probably could do without. You will never rate of return an 8K, box, buy a 400HF one. If you manage to pay for it the thing will soon be worth the same as 1500 ot 2K box on craigs list

 

[cj7365]

I hope no one takes offense to this: I mean it as an honest question.

If you are a younger guy, with credit problems from the past, is it wise or necessary to spend $500 on a single tool and $5k on a tool box? Is there no other option that would be suitable in a professional environment and leave you with far more money in your pocket?

Politely and respectfully tell me to **** an egg if I have my head in my **** about this. I am ignorant of professional wrencher thinking since I am just an amateur shmoe.

I totally agree, and you can tell me also to **** an egg

 

[kythri]

Thumbs up to buying the HF box or a quality used box. If you borrowed 2,500 and paid 200 a month at 18% you'd end paying over 500 in interest and it will take longer than 5 years to pay off.

WTF? No, it won't.

5 years of payments at $200/month = $12,000.

$2,500 at 18% APR, with payments of $200/month will take less than 18 months to pay off.

Monthly balance:

Month 1 = $2,537.50
Month 2 = $2,372.56
Month 3 = $2,205.15
Month 4 = $2,035.23
Month 5 = $1,862.76
Month 6 = $1,687.70
Month 7 = $1,510.02
Month 8 = $1,329.67
Month 9 = $1,146.62
Month 10 = $960.82
Month 11 = $772.23
Month 12 = $580.81
Month 13 = $386.52
Month 14 = $189.32
Month 15 = $0

 

[atwageman]

Buy a HF box. Remove the branding signage and replace it with Snap On name plates. All the prestige without the debt. Or as they say in the da hood....fake it until you make it.

I've been buying tools for 20 years and have always paid cash as I went along. I'm happy I never got caught up in the credit trap with the truck brands. I love the tools Ive gotten from Snap On and Cornwell, and love even more I don't feel like I owe the neighborhood mafia loan shark.

 

[Ironhorse]

You guys are forgeting that you get to write both the tools off and the inst. off at the end of the year..well up to a point...but it is more then 20%...so to each there own...I do both...a little on credit and buy some on cash..works out good...I trade tools in so it is good to have a truck account in the first place..this way my snappy guy does not feel like he is getting boned..and I am happy getting 50% on my trade...works both ways...err..my 2 cents.

 

[chris142]

http://losangeles.craigslist.org/lgb/tls/3405490837.html