Do you (or someone you know) borrows money from the bank to invest?

C

crgarcia

It's ill advised. Certainly I would never do it, but I want to know if someone borrowed here.

I knew (fast friends) some very rich guys who borrowed long term, making some easy money with buy and hold.
Of course during bear markets their accounts go down a bit, but they still withdraw to pay interests.

I guess they dont use much leverage.
Also I don't have the easy/cheap credit they have.
 
i had given some thought to it, but just don't need it.

one way of doing it @ zero % interest for about 15 to 18 months would be to borrow money on a current credit card and then transfer the total balance to another card that offers zero % interest for the greatest amount of time
 
Quote from da-net:

i had given some thought to it, but just don't need it.

one way of doing it @ zero % interest for about 15 to 18 months would be to borrow money on a current credit card and then transfer the total balance to another card that offers zero % interest for the greatest amount of time
More...

Theres usually no grace period on cash, so you'd have to transfer immediately- Plus the maximum you can take is usually some ridiculously low number. Otherwise everyone would be taking out personal loans at 0% interest on their credit cards. What a nightmare.
 
apply for 0% card,get 20K limit go buy 20 1K gift cards,cash it the next day you have 20K regular credit card debt at 0% for 12 to 18 months and 20K in your pocket to invest.



At least that is how it was done when I was young...er. :D :D :D :D
 
Quote from trader_arb:

Theres usually no grace period on cash, so you'd have to transfer immediately- Plus the maximum you can take is usually some ridiculously low number. Otherwise everyone would be taking out personal loans at 0% interest on their credit cards. What a nightmare.
More...

you would have to make monthly payments, but if you could take them from trading profits..well

as to the ridiculously low amount, that depends on what you call a ridiculously low number, plus it would be more a function of your relationship with your CC issuer and your limits..the ones i deal with would allow me to max out my CCs in a "check withdrawal" that could be deposited in my bank account In fact i get checks from them every couple weeks offering zero % for 1 year, but i destroy them...

as an example if you had mid 5 figures or low 6 figures available you could write a check withdrawal on, it would probably incur charges of $100 to $150, but that would be negligible imo for someone that wants to do it

dangerous, yes! but if someone wanted to do it...this could be a way
 
Go buy a new truck for 50k drive it off the lot and lose 10k the first day. No one bats an eye on that loss.

Hell yea, I borrowed money to put in the market and would do it again. I'd recommend it to anyone, just have a money management plan.
 
I do borrow from 0% credit cards (through what are called App-O-Ramas, check out Fatwallet.com for more info). I have about $70,000 out right now, with about $60,000 of that in a 4.75% INSURED savings account. $10,000 of it is used on margin for futures trading (ag spreads).

If anyone does put 0% money in the market, have a risk plan for it and be willing to get out when it hits a certain amount. I have a younger friend going through college who had excellent credit, borrowed $35,000~ on 0% for 12 months, lost about $25k of it, and is paying the rest back at interest rates between 12-16%. Do not mess up on them or you will pay huge amounts!
 
You must log in or register to reply here.
Back
Top