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 wouldn't do this unless I was very certain the principal was not at risk. Also, the cash advance fee for some cards has a cap of $50 but some don't. You could get around this fee if you or someone you know has a business with a merchant account. You could charge the amount and only be hit with the merchant fees which are usually 2% to 3% or so depending upon the merchant agreement.
If you need to use a credit card to acquire funds to invest, it's a sign that you should not do what you are proposing. If anything, increase the amount you would like to throw into you investment account from real income and use your card a little more for your daily expenses.
QDZ, just for the record which credit card company let you pull $100K in cash out of a card? That's a business level line of credit. Did you have to provide them tax returns etc...? What did you tell them you do for a job? I imagine that daytrader is the nice steady sort of employment that creditors really like to lend money to.
I have a Wells Fargo Business Line that doesnt have a cash advance fee but there's a $150 yearly fee to keep it open. I use it once every few tears when I'm ina cash crunch, but only for a few days
Qdz...... If you were my Golden Retriever, here's what I'd be saying to you right now: Bad dog.....Bad dog.
OK, Qdz, here is what you should do. Take the $100K out regardless of the fee on a Friday afternoon. Fly to Las Vegas Saturday morning. Go to a well known casino and put the entire $100K on BLACK on a roulette wheel (All on one bet - one spin). You have almost a 50% chance of winning. IF YOU WIN, fly back home and Monday call the credit card company and tell them you didn't mean to take the $100K out and want to put it back and get the fee back. They might fall for that and save you $4k. Either way, you now have $100,000 to invest (before taxes). IF YOU LOSE, fly back home, close your trading accounts, get a steady job and start making payments on your new $100K loan. You obviously aren't lucky enough to be a trader.
Thanks everyone for your comments. I know what I am gonna do. PuffyGums, it's from Bank One. Is it good? Any other better offer beats this one?