Use credit line to buy stocks

[Raj03]

This is your own decision just take this decision own self.
But i will suggest first survey the condition then invest your money.




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Raj
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Equity Credit Loans - Equity Credit Loans

 

[acerbits]

I fail to understand why you don't just use a margin account

 

[Nofear777]

LOL!

Thats all I can say.

 

[TraderZones]

Quote from QdzResurrection:

I have 80% chance of growing the conservative portion of my investment 18% every year. Now this credit card company approved me a $100,000 credit line at 10%. Should I take money out of this line and invest in the market? How can I avoid the cash advance charge (2 to 5%?)? Noweven if I decide to use this credit line, I need to establish another line to roll on, any suggestion on a better line?

Borrowing to trade ranks as one of the truly stupid suggestions of our time. Especially in this time.

If you lose the money (good chance), you are screwed for years.

 

[huh]

Quote from QdzResurrection:

I have 80% chance of growing the conservative portion of my investment 18% every year. Now this credit card company approved me a $100,000 credit line at 10%. Should I take money out of this line and invest in the market? How can I avoid the cash advance charge (2 to 5%?)? Noweven if I decide to use this credit line, I need to establish another line to roll on, any suggestion on a better line?

I've done this on a regular basis for a long time although at a much smaller amount (about 30-40K) and from my experience 10% is way too much to pay. You should be able to score this deal in the 4% range so I'd shop around......and of course make sure you have a solid PROVEN trading plan before you attempt it as many have mentioned that you could really screw yourself if you are wrong.

Good luck!

 

[DataCruncher]

I don't see how you can count on an 80% chance of growing it at 18%. So many things could change in the meantime to invalidate the extrapolation.

 

[traderyin]

There are a lot of 0% APR offer floating around. You should use those instead.

There is no way to avoid the cash advance.

 

[DataCruncher]

if you use a 0% APR balance transfer offer, I believe it will be categorized as a balance transfer, not a cash advance, unless it says otherwise in the terms and conditions

 

[oraclewizard77]

Max out your credit cards, buy gold. Hide the gold. Declare chapter 11 and don't repay the credit cards.

 

[TraderZones]

Quote from oraclewizard77:

Max out your credit cards, buy gold. Hide the gold. Declare chapter 11 and don't repay the credit cards.

1) bankruptcy is not that simple.

2) It screws up your credit history

3) It drives up your costs of things like car insurance or trying to get mortgage/loan. 0% interest on a new car? "Sorry, but not with your credit. How about a nice 12% interest rate instead???"

4) It reall screws up your chance of getting decent jobs in the future.

5) What you are saying is called fraud. If discovered in any way, they will undo the bankruptcy and you can get some serious problems from trying to be clever, perhaps jail time. The lawyers for the credit card companies are not quite as stupid as people think. They will attach your salary, your savings or any other financial account for a long time to come, including heavy penalties, interest, legal costs, etc. etc.