Real World Stories: Credit Card As Label Follow-up

credit_cards.jpgcredit_cards.jpg

We love hearing from our readers experiences and yesterday’s article on credit cards as a record label sparked a great email I wanted to share with everyone. Musformation reader Dane of the awesome act Jamestown Story wrote in with another side to the story of credit cards helping you get ahead. Here is what he had to say:

” I’m a solo artist who has been doing music full-time for the last 5 years and in that time I’ve had some bad experience with credit cards, and some great experiences. I definitely agree that you don’t want to get in over your head with a card if you’re not bringing in a consistent income. I added a full band for about 2 and a half years and we managed to get to around 11k in debt (on a card) right before the band split off. I continued to do the band solo (seeing as it started off solo) through the wonders of iTunes and a Japan deal I managed to get it all paid off and started living fairly comfortably off my iTunes sales (which is where I am today). That was about a year and a half ago, and ever since then I’ve been using 0% APR cards to purchase gear, cd releases, merch, etc to act as my own label persay, and I’ve found it to be a great experience. With where I am at, I’m not looking for a label because I’m doing just fine independently financially/fan base-wise, but when it comes time to put out a CD, or buy a piece of recording gear/live gear, etc, I carefully figure out what is reasonable to put on there (because lets face it, it takes money to make money) and I pay it off ASAP. I’ve actually started JUST using my credit card, instead of my check card, so I get some cash back after every ____ amount of dollars spent, and then at the end of every month just pay the card off… The easiest thing to do (to find a low APR card- ed.) is go to Google search 0% APR credit cards. Then browse around and apply for any cards with 0% apr for 12/18 months (that you are eligible for). I’m not sure if applying for too many cards brings down your credit (it does in fact bring down your credit by applying to too many credit cards- ed.), I could see that being the case, so i’d apply to as many as you can within reason. Normally, assuming you have decent/good credit, you should be able to get it on the first or second try. After that you’re good to go for a loan up to what limit is for 12 or 18 months with no interest.



Things I’d personally recommend:
-For bands with
van’s that break down and have problems, be EXTREMELY careful with what
you put on your card (that’s what got us in so much debt). If you can
avoid putting repairs/breakdowns on your card, I’d definitely do that.
-Try
and find a card with some sort of cash back option. Normally its
something like 5% of what you buy after $5000. So basically on average
you’ll get $50 back when you spend $5000. Not much but just an extra
perk.
-If you have a steady income coming in, use your card for
EVERYTHING you buy, and then pay it off right away. You’ll make more
cash back and get better credit!
-Don’t have a bunch of different
cards so you can spend more. For example, if you need 3 cards to have a
total limit of $2500, maybe you shouldn’t be the one applying for the
credit card. One, two MAX, is more than enough. when you start having
more cards, unless you’re disciplined with your banking and spending,
you run the risk of missing payments, spending too much, and making
your credit worse. “
Awesome wisdom and real life
experience! We love stories like this and always appreciate this input!
Check out Dane’s awesome songs at Jamestown Story‘s Myspace page as well!