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I posted this article on my blog, however I think its worth sharing with the masses:
Many domainers would advice you against using credit to purchase domain names. Primarily because unless your a seasoned vet, using credit to purchase a domain name can often times cause much more trouble than anticipated. Imagine overpaying for a domain name that wont gain in value and racking up interest debt in the process. It can get ugly, especially if you jump in too soon or too much.
Now, if the shoe is put on the other foot, there are some great things floating around that you may want to consider taking advantage of. I recently received an offer from Discover for a credit card with 0% APR (FOR LIFE!) on Balance Transfers and a reasonable rate on regular purchases. What does this mean? Well, basically it means I could make a large acquisition of a premium domain name, in the neighborhood of $5-10,000 on a credit card, move the balance to the discover card and pay it off nice and slow without accruing interest. Its like borrowing money for practically free.
Now, you may be saying, Theres gotta be a catch. There is. You must put at least 2 transactions on your new discover card each month (starting Jan 09). However, this can be as little as .60 cents each. So, being a little creative, you can setup a reoccurring bill from your paypal account for $1-2 per month and this is automatically drafted from your Discover card. There is also a Balance Transfer Transaction fee, but that is maxed out at $75.
What Ive described is a great way to borrow money, with practically no interest. Again, its not recommended for those just stepping into the game, but rather for the more seasoned crowd, looking to expand on someone else’s dime. You also of course must need excellent credit. Good luck!
Justin
Many domainers would advice you against using credit to purchase domain names. Primarily because unless your a seasoned vet, using credit to purchase a domain name can often times cause much more trouble than anticipated. Imagine overpaying for a domain name that wont gain in value and racking up interest debt in the process. It can get ugly, especially if you jump in too soon or too much.
Now, if the shoe is put on the other foot, there are some great things floating around that you may want to consider taking advantage of. I recently received an offer from Discover for a credit card with 0% APR (FOR LIFE!) on Balance Transfers and a reasonable rate on regular purchases. What does this mean? Well, basically it means I could make a large acquisition of a premium domain name, in the neighborhood of $5-10,000 on a credit card, move the balance to the discover card and pay it off nice and slow without accruing interest. Its like borrowing money for practically free.
Now, you may be saying, Theres gotta be a catch. There is. You must put at least 2 transactions on your new discover card each month (starting Jan 09). However, this can be as little as .60 cents each. So, being a little creative, you can setup a reoccurring bill from your paypal account for $1-2 per month and this is automatically drafted from your Discover card. There is also a Balance Transfer Transaction fee, but that is maxed out at $75.
What Ive described is a great way to borrow money, with practically no interest. Again, its not recommended for those just stepping into the game, but rather for the more seasoned crowd, looking to expand on someone else’s dime. You also of course must need excellent credit. Good luck!
Justin
