Can you link to where you initially laid out this strategy? I'm interested to know more details. I searched on boards but couldn't find anything.
www.lendacademy.com/forum/index.php?topic=960.msg6002#msg6002and
http://www.lendacademy.com/forum/index.php?topic=1754.0I used the idea someone else suggested in my first thread and did 0 APR purchases of business expenses, to increase leverage somewhat without having to do another convenience check. That's my preferred method of funding this strategy now. Also, in case anyone was interested this strategy shot my FICO up to the 800s (until recently when I got 3 new cards, now I'm slightly below).
Thank you for the links. I did the 0% balance transfer thing back in 2003-2007 or so. Eventually the 0% offers stopped coming. Luckily I had paid it all off and now pay off all cards every month.
Great way to get very cheap capital. I look forward to reading more updates.
The problem is that so many offers require a 4 point fee for the cash advance. If I had cheap debt I'd probably give it a go.
Just in case anyone is interested, this may be useful to know related to this thread:
I saw that loan and leverage was the first thing that came to mind. Their application has a pull down menu box and if you select anything but new car, the rate jumps up past 2%. I'd be wary of misstating the purpose.
If you own a car with no loan on it or have a car with a higher blue book value than what you owe on it, then it might be a legit finance or 'refinance' of the vehicle. It'd certainly be a more legit usage than what the majority of our LC loans actually get put to vs what they say they're going to use it for. If LC doesn't check to see if you paid down loans or credit cards with your LC loan, not sure how these guys would check into how you spent your lightstream loan.
That having been said, a <2% unsecured loan seems to land on the too good to be true button. That's below the rates for a secured heloc. I could see that rate on a dealership financed loan where the dealer or automaker is subsidizing it. There's a catch.
The "catch", if you want to call it that, is that LightStream's target customer has "
excellent and substantial credit" to receive the lowest LightStream rate.
From my experience (yes, I applied for a LightStream loan), I recommend an 800+ FICO on Experian and Equifax AND income and savings in-line with your requested amount if you want to maximize your chance for approval.
Hi!
I also have the Chase freedom card that gives 5% back. However the maximum annual rebate @ 5% is $1500. Just be careful you don't run over or it will cost you! If you have a brokerage account with Interactive brokers you can get a margin loan for 2% APR.
Nathan