How to Get $100,000 of Funding for Anything You Want at 2% Interest
What I share here is not for the faint of heart, or for the risk-averse. I'm sharing years of experience and expertise from watching and doing the same thing over and over, so I know it works perfectly.
Here’s what it’s about. Most people pay at least 6% to 9% when they borrow money from a bank (except for a mortgage, which gets as low as 3.5%). To get this money, they have to go through a painful application & approval process.
I could borrow $100,000 tomorrow, and get that money for 2% per year interest, and take 10 years to pay it back. You can do this too, and use the money for whatever you want by the method in this article.
When you need funding for a business or anything else, you may not need to go any further than your own credit cards (or the cards you apply for if you don't have any). Why would anyone want to use credit cards to fund anything? Well, because credit card money can be cheaper than ANYTHING out there, no matter where you go.
Here's the situation. You need to borrow money to do something. This is "temporary" money, meaning you need it for a limited amount of time (but it could be many years if you get to be good enough at this). So rather than going to a bank and applying for a loan. Rather than going to an investor and have to give up 1/2 of what you own to guarantee it. Rather than going through the hassle of dealing with any kind of lender. All you need to do is pay attention to those envelopes you keep getting in the mail from your credit card companies that say "0% on balance transfers for 12 months or more".
By doing this method you have free access to 2% money anytime you want, for any purpose you want.
Here's why credit cards may be the BEST DEAL you'll ever find for borrowing money:
- You can borrow money at 2% per year (that's a 0% offer, but with a 2% balance transfer fee)
- You only have to pay a small minimum payment every month (usually only between 1 and 2%)
- You can do it OVER and OVER again, without applying for a new account, any time you want
- The more you do it, the more offers they give you to do more of it
- These deals are usually for 14 months (some as much as 18 months!), so it’s really less than 2% annual rate
- It actually builds your credit score!
Here are the risks or downside of using this method:
- It’s a short term. You MUST be ready to either pay the money back at the end of the period (12-14 months), OR be ready to transfer the balance to another card (easy to do by following these steps)
- You are only paying 2% or so (depending on the deal) but you are paying it up front (when you do the balance transfer)
- Like borrowing any money from anywhere, it can put you at risk of not being able to pay it back
So how do you do it?
First, get four credit cards with as high of a credit limit as possible.
Some of them you apply for will give you a decent credit limit. Others may give you a meager limit. There are two ways to deal with the meager ones. First, borrow against them (or just use them), and faithfully pay the minimum amount. After a while call and ask for a credit line increase. Usually they will increase it by some amount. You can continue doing this to keep bumping it up to where you need it to be.
If they won’t give you a credit line increase, you may want to cancel the card and replace it with one more willing to work with you. I say you “may” want to cancel because credit cards you have that do not have a balance on them work in your favor. So as long as your outstanding credit limit across all cards is not too high, it’s okay to keep cards that you don’t use. Once it gets too high it’s more difficult to get another card.
You want at least 4 credit cards (to begin with), but you want the ones that frequently do balance transfer offers. You’ll know which ones because they’ve been sending you what you’ve considered “junk mail” for a long time trying to get you to take advantage of their 0% offers. All the big card companies do this: Chase, Citibank, Bank of America, etc. etc. etc.
Next, take advantage of the largest balance transfer off you can get. Some will offer 4% transfer fee, but some will be as low as 2%. Take the best deal you can get. If you’re just trying to build up to where you have the credit, the first offer you do will begin the onslaught of other card companies wanting you do take advantage of THEIR offers as well. This is good.
IMPORTANT: Many people think these balance transfers are ONLY good for transferring balances to pay off another credit card or debt. Not so. These balance transfer offers come as “balance transfer checks” in your mail. These checks can be written to your bank and deposited directly in your checking account, meaning you can spend them on WHATEVER you want. The online version of a balance transfer requires you to transfer to another credit card account. But balance transfer checks do not.
Mark on your calendar (and make it remind you) when that balance transfer offer is up. You do NOT want to miss this date because the rate will go from 0% to 10%, 12% or even up to 18% or more. So whenever you do a balance transfer you mark it in your calendar and make it remind you 3 months before the rate expires.
At the 3 month mark before the 0% expires you need to look to your next card you will transfer that balance to (start paying attention to your mail again). If you have at least 4 cards with high enough balances you can keep 2 or 3 filled with money you’re borrowing, and transfer to the remaining one (with no balance on it) when the one that is filled expires. In reality you can keep doing this forever, and it just keeps improving your credit score as you do.
From before the year 2000 up until the downturn of the economy in 2007, credit card companies would do these balance transfers with NO FEE, and 0%! Imagine that. That’s actually FREE MONEY. After the downturn, these “free money” deals went away, and the fees to transfer balance became generally 4% or 5%. Now, entering the year 2014, the economy is doing much better (and the banks are too), so these rates are back down to 2%. I would venture to say that if things keep improving we may see the 0% AND NO FEE offers come back as well. Watch your mail and see.
Again, borrowing any money can be risky. But if you need to borrow, find the best deal you can get. This method can be a way to get you started in your own business by getting access to capital, or to borrow money to purchase something in the cheapest way possible.