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Kabbage Loan Is A Losing Proposition

4/30/2013

The following article is purely the opinion of the author and not intended to harm or cause damage in anyway to the business enterprise of Kabbage Inc. The intent of the article is to provide insight and information to help consumers decide whether a Kabbage loan is in their best interest.

I sell a great deal of vintage sports cards on eBay. To feed my eBay store, I purchase a tremendous amount of vintage sports cards on a regular basis. Sometimes I don't always have the funds when a good deal presents itself. I recently observed the advertisements for Kabbage on eBay and tried to research this "loan" system. I could not find a negative review of Kabbage on the internet. Though everything I read seemed to come straight from a Kabbage Inc. press release. These folks are smart and have enrolled an army of internet professionals to espouse the benefits of Kabbage.

I went to the Kabbage website and read the Kabbage "loan" contract. According to the contract, Kabbage is not a loan at all, rather, they claim to purchase your future sales. They call the "loan" an "advance." There is an incredible amount of legalese in the Kabbage contract. To say the contract is skewed in favor of Kabbage Inc. and limits your rights to almost nothing, is an understatement. One of my biggest concerns with the Kabbage contract is that since it is not a loan per se, Kabbage does not have to follow federal and state lending laws. Thus, when you contract with Kabbage, your rights are greatly limited, as opposed to a traditional bank loan where you have protection in the form of state and federal statutes.

Well, I wanted to make this purchase of a large group of cards, so against my better judgment, I took a Kabbage "loan." I knew right from the start that it was a losing proposition but I felt the only way to fully understand how Kabbage operates, because the contract makes no sense, was to take an "advance."

Here's what I learned: At a minimum, you are going to pay $300 to take a $1000 advance from Kabbage. The company's internet professionals espouse about a supposed 8 percent interest rate. This is complete nonsense, I ended up paying more like 40 percent interest because of all the fees. These folks are quick with the fees, so that $300 cost will go up quickly. First off, you only get six months to pay off your Kabbage debt. You give Kabbage full access to your PayPal account. Your first payment is due before you can purchase and receive product. With no time to sell the new product before payment is due, expect to receive a late fee. Then the friendly folks at Kabbage will raid your PayPal account until that first payment is paid in full. You can forget about purchasing eBay shipping. You will have no funds in your PayPal account to purchase eBay shipping and the free tracking because Kabbage will grab it as soon as a customer makes a payment. I ended up having to go to the post office to pay the higher USPS shipping cost and tracking. So I incurred a late fee from Kabbage and had to pay extra shipping fees because Kabbage wouldn't leave any money in my PayPal account to purchase eBay shipping.

I found it difficult to meet any of my Kabbage payment due dates. The due date is usually between the 5th and 7th day of the month. If you're like me and pay your eBay fees on the last day of the month, you have less than a week to sell enough product on eBay to cover your Kabbage payment -- nearly impossible. The result, another fee. Kabbage gives you just five days after your payment due date before a fee is incurred. The end result here is Kabbage is a bottomless pit of fees and aggravation. I will not take another Kabbage loan and I urge others to avoid this company at all costs. With all the fees in addition to the amount of money I spent purchasing product with my Kabbage "loan," I ended up losing money. My goal is to make money, not lose it. In my opinion, Kabbage is a borderline predatory entity. I think state and federal officials are going to have to refine consumer protection laws to make this Kabbage-type "loan" illegal.

The comments posted below are the independent opinions of the posters and not that of the author. I have disabled further comments. Seems like the majority of comments that come in are phony.

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How To Collect Vintage Sports Cards

12/27/2012

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From my vantage point behind mounds of vintage sports cards at weekly card shows, I have observed many different types of vintage sports card collectors. The most common collectors are those that collect complete sets, team sets, or star cards. Some collectors have unique collections. I have observed a father and son team at the regular show in Orland Park, IL, that just collect quarterbacks. At the regular Gonzaga show in Milwaukee, I have seen collectors who just collect football players that attended the University of Wisconsin. I met some collectors in Canton, OH, that collect football players who attended Ohio State University. There is a gentleman at the Gonzaga show who just collects Italian baseball players. I have had quite a few collectors who soley focus on Hispanic ball players. Some collectors just collect insert cards. There are others that just collect regional or oddball issues of cards. In my opinion, there is no right or wrong way to collect vintage sports cards. I think you need to collect whatever gives you the greatest enjoyment.

Most of the collectors that visit me at card shows collect complete sets. Some are putting together a set of cards from the year they were born. Others are just putting together sets from certain decades. Still others are collecting everything. My suggestion for the novice vintage sports card collector is to start with the 1979 Topps baseball set and work your way down to the older sets. The 1979 set is a very affordable set with many of the common players available for just a dime a piece. Most of the star cards are under $5. The biggie in the set is the Ozzie Smith rookie which can be found for about $20. You can buy the whole 1979 set for around $75 to $100. Though, I think it is much more fun to build the set from scratch.

When starting to build a set from scratch, most collectors either look for a lot or group of several hundred common cards to get started. Though, I regularly get guys at the shows who simply start a set by pulling cards from one of my binders. I try to stock near sets in all sports from 1952 to 1979. There also are dealers at the shows who sell large groups of cards from a single year, these groups are often called "starter" sets or lots. In addition to shows, you can also find starter sets on eBay. There was a time when cards on eBay were much cheaper than card shows. However, the pricing at shows, at least the smaller shows that I regularly attend, have now matched eBay. I can actually find cards cheaper now at the shows than eBay. One of the advantages of shows is that you can negotiate a price while on eBay you are stuck with a set price or you may get out bid in an auction. Though, beware, card prices at the large mega-shows that attract national dealers are always higher than the smaller shows and eBay. Also, as a general rule of thumb, card prices at card shops are higher than shows and eBay because the shops have a great deal of overhead. But I would no completely rule out card shops because some of the older ones, like Jim & Steve's in Waukegan, IL, or AU in Skokie, IL, have tremendous vintage card inventories and can be a great help when you are down to one or two tough cards to complete a set.

I recommend starting your 1979 Topps baseball set with a starter lot purchased from either a card show or eBay. Once you have your lot in hand, you need to organize the cards in numerical order then make a list of all the numbers you need (each card is assigned a number that is printed on the back of the card). There are 726 cards in the 1979 Topps baseball set. You can simply write all the numbers you need on a sheet of paper. I see many collectors with computer print outs listing the numbers they need. Others keep their lists in their smart phones or iPads. Either way, when attending a show, it is essential you have a list of the cards you need and a pen or pencil to scratch out the numbers once you purchase a card.

As I stated earlier, common 1979 Topps baseball cards should sell for about 10 cents a piece. So you need to find a dealer at the show who has the cards priced accordingly. Avoid the dealers that have their cards over-priced. There is no need to pay 50 cents for a common 1979 card from one dealer when there are other dealers selling them for a dime a piece. Many dealers will have a "Dime Box" where the '79s will be mixed in with other years. Check those dime boxes. Other dealers, like myself, will have a binder of 1979 Topps in numerical order where you simply flip through and pull out the cards you need. I have many common cards priced in my 1979 binder at a quarter because the condition is pristine. Higher conditioned cards generally garner a higher price.

Always, I stress always, try and negotiate a better price. For example, if you pull out 50 dime cards from a dime box, ask the dealer if he will accept $4 instead of $5. Most every dealer will discount the price of the cards if you ask. Those dealers that will not discount are the dealers you need to avoid. Also, you will want to avoid purchasing a single card on eBay for 10 cents because the sellers usually stick you with a $2 to $3 shipping fee. So card shows are the best place to purchase your 1979 Topps commons. As far as that Ozzie Smith rookie, I suggest watching some auctions on eBay to learn the going rate for the card in addition to taking note at the dealer tables at the shows before making the purchase. Remember, always ask for a better price. If a dealer has the card priced in his display case for $20, ask him if he will accept $15. Negotiating with dealers is part of the fun!

Next, I want to talk about card condition. I have observed three types of set collectors. The first are those that must have every card in perfect or "Mint" condition. A Mint Condition card is one where the image is perfectly centered, the edges and corners are sharp, the card is devoid of printing marks, the picture is in focus, and there is no wear on the card whatsoever. The mint collector inspect the cards as a jeweler would inspect a diamond. The second type of set collector are those that want their cards in nice condition or "Very Good" to "Excellent" condition. These cards can have a minor flaw but are still very nice -- say, a very slight ding on one corner or a printing mark. The last type of set collector are those that just want to complete the set in any way possible. They generally don't care what condition the card is in, they just want to pick up the numbers they need. Many of these collectors will complete a set then inspect their cards and come up with a new list of cards they want to upgrade in better condition and head back to the shows and search for their upgrades. They eventually end up with a set in Excellent condition. In my opinion, the third type of set building is the way to go. It is very difficult to find Mint Condition cards and the process of scrutinizing each card prior to purchase is very time consuming and takes a type of patience that I, for one, do not have. With the upgrade method there is a lot less pressure and you can always sell the lower grade cards once you replace them to dealers at the shows or on eBay.

Then there are the third party grading companies. These companies "professionally" grade a card, assign them a number that denotes the "grade," and encase or "slab" the card in a hard plastic case that is not meant to be opened. I first noticed these companies about 15 years ago. The two main companies are PSA and SGC. PSA has a "set registry" where set collectors essentially compete to have the highest graded set. In my opinion, the grading companies have done more harm than good for the hobby. PSA has a large staff of graders and many are half my age and just do not have the necessary experience to be grading cards. I have also observed that the grades are inconsistent. I have observed PSA cards that contain a crease and garner grades anywhere from a 1 to a 5. Also, cards that obtain a grade of 7 or higher go for astronomical prices. I personally feel that these prices cannot be sustained and there will one day be a crash where the graded prices will come back into orbit. Though, there are many set collectors who soley collect graded cards. The expense here is too great, in my opinion. Like I said, cards graded a PSA 7 or higher cost much more than an ungraded or "raw" card. Also, there is a fee involved if you submit a raw card to a grading company. PSA will run specials where you can get commons graded for $5 a piece, though you generally have to submit 50 cards at once. The problem here is when you are putting together a 1979 Topps baseball set and purchasing commons for a dime a piece, you are then paying $5 to get that 10-cent card graded. This is a complete waste of money, in my opinion. Though, if your last name is Rockefeller, by all means, get those 10-cent cards graded.

The next subject here is storage. The main ways cards are stored are either in 9-pocket plastic sheets filling up three-ring binders, or single card semi-hard plastic cases called "Toploaders," or a softer single holder called a "sleave," or the graded slab. Binders can be stored on a book shelve while the toploaders, sleaves or slabs are stored in boxes. I prefer the 9-pocket sheets in binders because it is easier to look at the cards in your set. I get great enjoyment sitting down and flipping trough a binder of cards. You can purchase all the card storage materials or "supplies" at cards shows, on eBay or at card shops.

The main point I want to get across is to have fun. This is a hobby. It is a great hobby, one I have been enjoying now for about 40 years. You don't have to spend vasts amounts of money, just spend what you feel comfortable spending. Avoid arguing with dealers. Some dealers act like they woke up on the wrong side of the bed -- they are just ornery. Other dealers are extremely pleasant. I often compare myself to a bartender and my table of cards is the bar and I set up chairs and invite collectors to sit down. I love talking sports and cards and have a great time each and every show shooting the breeze with collectors. Feel free to contact me with any questions or stop by and visit me at one of my shows. Happy collecting!

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Kabbage Loan Is A Losing Proposition

How To Collect Vintage Sports Cards

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