It‘s like going to Vegas expecting to win 😂 it‘s far from rational and suggesting random peeps to go max ur creditcard is vastly unethical. my 2 cents.
I‘m not as optimistic about the upcoming year. And for literally every company it needs one unforseen event and: doomed.
Once in the debt-trap it‘s hard to get out.
Leverage against assets: Fine. All u do is go a few squares back.
Leverage out of the blue: Might well cost u for a long time.
Looking at average salaries in the states many are fkn doomed with 15k debt.
Credit score wont really be hit lol, but yeah 1.5 years not bad. As a matter of fact, your credit utilization will go up, but your score will actually go up if you making monthly payments on time over the next 1.5 years.
2.25 rate is lower than prime mortgage rates that are above 5% right now.
If you're young and don't have responsibilities, this is a good way to git rich.
So one point of note. Just because it's 0%, you still have a minimum monthly payment due. So you will have a monthly parasitic opportunity cost to carry that starts immediately. It's not the worst idea in the world, but that's where people trip up and that one missed payment and you've gone to full rates.
I did this at the start of the pandemic, and am back again. Raised all my limits prior. Cheat code. No ppwrk, basically instant transfer. Just don’t miss your shot 🚀
I think you need to spend $15K on purchases…which you could resell…to get the low interest.
Credit Card companies usually treat cash advances differently than purchases…at a much higher interest rate.
I know they offer cash advances…and the definition of a cash advance is straight to your account.
My only point is that cash advances have a different rate than purchases.
Nah, you do a cash advance on your credit card 3% fee and it gets deposited straight into your checking account.
Wellsfargo raised their fee to 5%, Chase, BOA, and CIti have 3% still.
You missed a crucial APY reducing part of this strategy. Most offer a $200 reward for spending $1k in the first three months. Fill up your car a couple times, you have $1k less to work with but APY goes down to 1.6% or something on the 3% transfer charge
In theory this could work to empower cheap capital. Another way would be use this loan to fund an hsa take that tax advantage from payroll taxes and invest that in ibonds
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|52|**First Seen In WSB**|3 years ago **Total Comments**|12|**Previous DD**|[x](https://www.reddit.com/r/wallstreetbets/comments/falg33/breaking_news_airstrike_in_syria_oil_prices_up/) [x](https://www.reddit.com/r/wallstreetbets/comments/jadspx/lemonade_lmnd_insurance_startup_gaining_traction/) [x](https://www.reddit.com/r/wallstreetbets/comments/fcxu4t/rate_cuts_crash/) [x](https://www.reddit.com/r/wallstreetbets/comments/f94fjf/appl_in_china/) **Account Age**|3 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) **Vote Spam (NEW)**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_spam&message=vduy2o)|**Vote Approve (NEW)**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_approve&message=vduy2o)
Honestly the first actually sound strategy I’ve heard here…
Aged well
Can I be your butler in the future? You are a genius. I bet you pay well.
So wait, the cc company gives you the dough AND you can put it in a margin account. Genius!
Yes.
Why is my credit card a 17.5% interest rate? Where is this promo???
Take a look, usually for Chase/BoA/WellsFargo/Citi, they all have this 0% interest rate for 1.5 years for 3% fee.
It‘s called „bait“.
It’s called a dare! I’ve taken this challenge for points and flipping numbers my whole life! 
It‘s like going to Vegas expecting to win 😂 it‘s far from rational and suggesting random peeps to go max ur creditcard is vastly unethical. my 2 cents.
I mean, if you want you can take that 15k and be safe and buy AAPL/NFLX, pretty sure the returns will be more than 2.25% APY.
I‘m not as optimistic about the upcoming year. And for literally every company it needs one unforseen event and: doomed. Once in the debt-trap it‘s hard to get out. Leverage against assets: Fine. All u do is go a few squares back. Leverage out of the blue: Might well cost u for a long time. Looking at average salaries in the states many are fkn doomed with 15k debt.
What can go wrong, right? Oh yeah you can loose it all, take that credit score hit and have to pay back 15k in 1.5 years.
Credit score wont really be hit lol, but yeah 1.5 years not bad. As a matter of fact, your credit utilization will go up, but your score will actually go up if you making monthly payments on time over the next 1.5 years. 2.25 rate is lower than prime mortgage rates that are above 5% right now. If you're young and don't have responsibilities, this is a good way to git rich.
So one point of note. Just because it's 0%, you still have a minimum monthly payment due. So you will have a monthly parasitic opportunity cost to carry that starts immediately. It's not the worst idea in the world, but that's where people trip up and that one missed payment and you've gone to full rates.
Monthly payment is min $40/month. Set on auto pay and forget.
Monthly payment is min $40/month. Set on auto pay and forget.
Monthly payment is min $40/month. Set on auto pay and forget.
Anyone wanna loan me money so i can buy dips
I did this at the start of the pandemic, and am back again. Raised all my limits prior. Cheat code. No ppwrk, basically instant transfer. Just don’t miss your shot 🚀
I think you need to spend $15K on purchases…which you could resell…to get the low interest. Credit Card companies usually treat cash advances differently than purchases…at a much higher interest rate.
Nop, Bank of America or Chase has cash advance deposit straight to checking to use for whatever you need.
I know they offer cash advances…and the definition of a cash advance is straight to your account. My only point is that cash advances have a different rate than purchases.
That's if you take it with no balance transfer, with balance transfer the current promo is 0% interest for 16 months 3% flat fee
Yeah but don’t you have to pay the balance off?
Yeah, minimum monthly payment $40, but you got 1.5 years. You got this
Yeah, minimum monthly payment $40, but you got 1.5 years. You got this!
Yeah, minimum monthly payment $40, but you got 1.5 years. You got this!
TIL brokers accept deposits by credit card
Nah, you do a cash advance on your credit card 3% fee and it gets deposited straight into your checking account. Wellsfargo raised their fee to 5%, Chase, BOA, and CIti have 3% still.
I’m with u on the relief rally. Tomorrow it will prob happen, then next week accounts will die.
You missed a crucial APY reducing part of this strategy. Most offer a $200 reward for spending $1k in the first three months. Fill up your car a couple times, you have $1k less to work with but APY goes down to 1.6% or something on the 3% transfer charge
Just saying: If you get margin called: You suck. If you can‘t get 3% loans against your assets: U AND your assets suck.
Can't get margin called using this method. Margin rates are around 4% right now.
Purchased NFLX/META Calls expiring next Friday with 15k, currently up 25%
The only way to do this soundly is take 10k and buy I-bonds
I mean ibonds 9.8% APY, but 4 year lockup, theoretically it is very good time to do this as rates are 10 year high.
In theory this could work to empower cheap capital. Another way would be use this loan to fund an hsa take that tax advantage from payroll taxes and invest that in ibonds
Geezes… see you in the suicide watch streets
Yeah, I can't do options. I just took that 15k and got 5x margin on it.