Do you know the stellar benefit of charging your train purchases?

Yup...Erol "Loco Lawyer" Gurcan wrote an informative, detailed post on this very topic a few years back.   Always, good to reiterate for those new to the forum or who might have forgotten.

--Greg

Thanks for sharing the info.  Anxiously awaiting your update.

Phil

Greg,

We haven't talked  in a while. Hope you are doing well. Thanks for remembering that I covered this topic a few years ago.

 In addition to doubling your 1 year Lionel (non Vision Line) and MTH warranties, which of course is most important on locomotive purchases due to the electronics present (and doubling the warranty on other goods up to a year),  good credit cards (for example most gold and platinum cards) give you 1) a percentage of cash back (usually 1 to 5 percent on all  and/or certain specified items for a period of time) or 2) points on all purchases, which can be applied as cash towards a monthly bill.   When I acquire at least the mimimum necessary amount in cash from the points I have accumulated from  non-train related credit card purchases, I reduce my monthly bill by the cash amount and that becomes the money for my next locomotive purchase. I reward myself with a locomotive purchase every year or two from the other cc purchases I must make in life such as gas, eating out, buying things for the house and kids etc. Its like found money PROVIDED ONE PAYS THEIR CREDIT CARD BALANCE IN FULL EVERY MONTH.  I WOULD NOT advocate frequent use of a credit card if one carries a balance from month to month. Credit card interest rates are much higher than the loan rates available today.

Ken,

Thanks for reminding folks about the beneficial uses of a credit card.

Erol 

Since the early 1980s, I have always preferred to use my American Express card for most train purchases as well as most other purchases.  Although there is a fairly hefty annual fee for the card, the benefits (to me) outweigh the cost.  Better than carrying cash and requires payment in full each month.  Also earns Reward Points and is backed by what I regard by excellent extended warranties and other guarantees, along with fine customer service.

On the downside, some train dealers do not accept Amex because their fees are higher than most.  I understand that, and use other ways to pay those few special dealers that I have a standing relationship with and who may not accept Amex.  Still, when shopping online, the dealer displaying that Amex card logo is generally the one who gets my order even if the item may cost a bit more.

I do not use a debit card at all.  Had one from my bank and cut it up.  It's just not for me.

And thank you Erol. I had mentioned in another posting tonight (Take plenty of $$$) some of those other benefits you've noted regarding using a credit card but not as detailed as you've just done. I was unaware you'd covered this topic a while back but am glad I've brought it to the forefront once more for others to know. With time, maybe even strict believers in cash, checks and debit cards might give using one's charge card a second thought when making purchases. But as we both know USE OF CREDIT IS ONLY BENEFICIAL WHEN USED RESPONSIBLY AND THE MOST BENEFIT IS REAPED WHEN THE BILL IS PAID IN FULL FOR EACH AND EVERY BILLING CYCLE11111

Some people, including some of my friends, argue that ANY toy train purchase is

"fiscal irresponsibility" 

Allan, just to let fellow forumites know, even Amex's no fee cards as well as the majority of no fee Visa, Mastercard and other provider cards, give most of the same reward point benefits and the outstanding extended warranty protection you've mentioned which fee cards have.

The only card I have with an annual fee is my AMEX, which my employer pays and I get the mileage points :-) 

Credit card bargain shopping is similar to looking for train deals.  Most visa card deals give you the first year free, when the year is up and they want to charge us the fee we call and tell them to cancel the card, invariably they connect us to someone (a manager?) who waives the fee and sometimes gives us additional points to keep the card.  I've had personal AMEX cards, always for 1 year, AMEX has never waived a fee for us.

Credit card companies (Banks) make an "interchange" fee off every transaction you or I make with the card, so the more you charge the more they make, and the more willing they are to waive the fee.  As Erol mentioned, to get the most out of the deal it's best to pay the balance in full every month.

My response to them would be that "playing with toy trains" provides a person entertainment, relaxation and relief from the stresses which surround all of us. I would then gently and politely inform them that unless they've never paid for entertainment such as cable tv, bought or rented a CD, dvd, downloaded an MP3 or video, attended a movie, concert, show, sporting event, purchased any sport equipment, visited a theme park, bought a book solely for the pleasure and relaxation of reading it, etc -  then they might likewise be viewed by others as making fiscally irresponsible purchases.

BUT ON SECOND THOUGHT, UNLESS YOU 'ROB FROM PETER TO PAY PAUL' FOR YOUR TRAINS, NONE OF US NEED JUSTIFY THE LEGAL PURCHASES WE MAKE WITH OUR HARD EARNED MONEY, DO WE?

I use my Amex for nearly all purchases / travel and to pay my younger ones tuition. I use the points on Amazon..  

Hi Erol---yes, life finds me doing well and I hope all is well with you and your family as well.   I'm looking forward to talking in person at York!

Regards,

Greg

Has anyone used this extra year benefit? I am curious how it works. Do you contact the credit card company first during the second year or is up to manufacturer to keep track that the item was purchased with a credit card?

Pete

It's the buyer's responsibility. Unless you purchase directly from the manufacturer, the manufacturer has no idea when or where you bought it. That's why even when its still covered by the manufacturer's original warranty they require you submit a copy of purchase receipt so they'll know when and where you purchased it and determine if they're obligated to repair it under their warranty.

I have a Costco Amex, and their rewards points and the extra you also get in addition from shopping at Costco pays for my membership many times over.  I use it for anything I can.

I have used the AMEX extended warranty once, and it was a bit more work, but I ended up getting a new phone (my old one bit the dust after the first year but before I could get a free upgrade).

I’m a little late joining this thread and unless I missed it, I’m surprised that no one has mentioned another very important reason to use a credit card instead of a debit card: the dispute process if an item is not delivered or defective or if you were overcharged for it.  You don’t have that process with a debit card as using it is the same as paying with cash and you are on your own trying to get a refund.

I also have a Costco Amex and use it where ever it is accepted.  There is no charge for the card but you have to be a Costco member which costs $55 per year.  But between my wife and I we get back $250-300 per year as a cash rebate every February based on a percentage of what we bought anywhere (not just in Costco) in the preceding 12 months with different percentages for different categories of charges.  The highest percentages are on gasoline, travel and restaurants.  Costco also has the lowest gas prices in town so we also save about 5 to 10 cents per gallon on gasoline at Costco. 

Bill

From today's news:

http://bottomline.nbcnews.com/...edit-card-users?lite

I use a pretty simple system for making new purchases - and I make very few.

I buy at a local shop, which means I probably over pay a bit. I'm ok with that because the store is a mile from my house and the advantages of having a resource down the street is worth a few extra bucks in cost. 

When my new purchase arrives, I can open it and inspect it in the shop and test run it on their O layout before accepting it. If something is wrong, the tech can open it up and fix it on the spot. If he finds it is not repairable, or is damaged of whatever, I can just say "Send it back and get me a new one to purchase" because until I am satisfied, I haven't made the purchase yet. If more than one came in - they give me a different one, if not, I'll wait for a new one to show up.

As for paying, last time I ordered a new item, it was MSRP $499.00. I asked what price I could buy it for on the understanding I would be paying cash. No credit card fees, no processing or anything else. Wallet sized photos of deceased presidents. The agreed upon price was $400.00 cash. The store set the price and I agreed. I didn't go in and say "I found it on the internet for $349.00 can you beat that price?"

It would take a few months from the time of order.

I go to the store several times per week, so I charged myself admission. Everytime I walked in I gave the Store Manager five or ten dollars in cash.

When my engine arrived - was test run and determined to be in good condition, I walked out with the engine and $50.00 or so that I had overfilled the fund. Instead of "oh jeez - my engine is in - what card do I put it on? Will my wife find out? Will she see it on the Amex statement?" It had long ago been paid for from pocket cash I just didn't miss.

Not the solution or circumstance for everyone, but works great for me, and it works for the store. Turns out, I could have bought it for $31.00 less on the internet - but that is before shipping. But whatever showed up at my door from Joe Internet Retailer would be what I would have to live with. I think the extra $31.00 was money well spent.

I use a credit card for most of my retail purchases too.

However, it makes me a bit uneasy that the credit card companies have data warehouses that track all our purchases. Who knows how that information is being used right now, or will be used in the future? (same goes for supermarket discount cards)

For example: in the future, will folks pay higher life or health insurance rates if the data warehouse shows that they frequent McDonalds, and buy Big Macs and fries?

I expect that people will call be paraniod, and scoff at the idea, but I see ads for an automobile insurance company that will give discounts to people who voluntarily put driving sensors in their car.

Sorry for delay in upadting this post -- The site which lists the perks or benefits, (including extended warranty on purchases made) of FIA Card Services, N.A. issued credit cards is:

www.benefitinformationcenter.com
 Type in the first 10 digits of any credit card and the benefits of that card will be listed.

**Since this site is intended for credit cards issued thru FIA Card Services, N.A., if any of your cards are not FIA Card Services, N.A. issued, then check with the issuer of those cards for a site listing their card benefits.

Hmm...  Every card in my wallet fails on that site.  MC, Visa, AMEX, and Discover!

For those of you who do not fly, consider getting an Amtrak Guest Rewards credit card (https://www.amtrakguestrewards.com/info/).  Instead of airline points, you get Amtrak points, good for Amtrak travel (and other things too).  We have built enough points to make our trips from Arizona to Pennsylvania for York in a deluxe sleeper almost all paid for by our points.  

I signed up about four weeks ago. How long did it take for your credit card to arrive? 

Sorry for the miscommunication and inconvenience gunrunnerjohn. In posting the site you're referring to, I neglected mentioning it is intended for credit cards issued thru FIA Card Services, N.A., if any of your cards are not FIA Card Services, N.A. issued, then you should check with the issuer of those cards for a site listing their card benefits. I have since added this information to the post you referred to.

I figured that out after looking on the site.

so does that mean it's transparent to the company doing the fixing? 

Do you pay Lionel or MTH (or whomever) and then the credit card company reimburse you for the expenses when you provide them with the bill you received?

-Dave