Okay, I've been thinking about a new computer for a few months now, and decided to check out gateway and dell (my old mac is ready for retirement). Dell finance (I cannot remember the name of the bank) declined my application, however, Gateway approved my application with 90 days same as cash (which I plan on taking advantage of).
Does anyone know if Gateway reports to the credit bureau? I think the terms are through MBNA Bank (but I didn't print it off...). I checked with the rep and it is a revolving account.
Honestly, I'm shocked that I was approved -- I was recently declined for the AA Citibank card, which evidently is fairly easy to obtain.
I think Gateway has two different sources for financing--MBNA and Hurley State Bank. If MBNA doesn't approve you, Hurley State Bank likely will at a higher interest rate. I'm not sure about MBNA's terms, but the "90 days same as cash" terms is very characteristic of Hurley State Bank. They offer that on all their credit cards such as Goodyear, OfficeMax, RadioShack, American Airlines, and United Airlines.
Regardless of who is financing your new computer, you stand to establish a positive credit line through a good company. MBNA is one of the better credit card companies, and Hurley State Bank is now owned by Citigroup.
Frankly, the MBNA financing is hard to get. I used to sell PC's at Gateway and had a hard time getting my customers financed. You're in good shape, this will be a nice tradeline because, at least while I was there, they reported. Best of luck with the system, I have one from 93, 96, and 99 and all three are still running like champs.
First, far as I'm concerned, there is no better all-around computer or computer company as Gateway (my opinion only...don't want to start a debate..)...
We were buying a machine for a relative. We were going to pay cash, but decided to do 90 same as cash, especially since we have an MBNA card with a huge limit, and they seem to see us as a good customer. Figured we'll at least see if it is MBNA getting the account.
We were approved online for about 8K..took like 30 seconds...90 days same as cash. The only problem was that since we were shipping to a different address, that set off the fraud alarm, and both Gateway and MBNA needed to call to make sure it was legit. As usual, both companies were 100& professional and prompt...the computer went from order desk to door step in something like 10 days...
My only minor complaints would be:
1. I've started to get buried in all kinds of Gateway offers...coupons, customer referral opportunities, even cash advance checks against the Gateway account..no big deal, just annoying...in some ways, this is simply another MBNA card with a credit limit...
2. The 90 same as cash term is not typical...they CHARGE you interest each month, and then refund the difference when you pay off the account...gee, there's a balance on the Gateway account, what better rationalization to go buy something more...I'm used to the typical 90 same as cash, where you only get nailed if you don't pay it off in 90..
Otherwise, I have no complaints. I'm a firm believer in not financing a computer unless you are going to pay it off fast; this is as extreme from a financing standpoint as I get...
i bought my computer through gateway and it was MBNA that approved my loan.my credit was not good at all. i paid 26.9% intrest! i ended it transfering the loan to a lower rate credit card a year or so later.
I just got my Gateway Credit statement yesterday and it came with a new cardholder agreement. Hurley State Bank has sold my account to a subsidiary of Gateway Computers, it's finance division called, "Your:)Bank.com." I tried doing an Internet search, but came up empty-handed. The title, Your:)Bank.com, reminds me of Gateway's bundled software & video packages called, "Your:)Ware."
The interest rate on the new cardholder
agreement remains unchanged (although, it doesn't state what the new interest rate will be). The Hurley State Bank interest rate is a whopping 27.99 %, if you don't pay off the computer under the "90 days, same as cash, easy pay plan." One significant change with the new cardholder agreement, is that Your:)Bank.com, will be using the average daily balance method of computing finance charges, as opposed to Hurley State Bank's, two-cycle billing method, ouch! If you pay your charges off every month, the two-cycle billing method associated with Hurley State Bank, Discover, Orchard and First Consumer National Bank (FCNB), is not a problem. Best wishes to everyone and have a dynamically prosperous New Year! TommyC