Any ideas for borrowing up to $25000 unsecured?

[Cali Coug]

I started a business and would be interested in borrowing up to $25000 for use in the business. I only want to do an unsecured loan, just in case!

;)

[Archaea]

I started a business and would be interested in borrowing up to $25000 for use in the business. I only want to do an unsecured loan, just in case!

;)

Go to bank. Not hard, you usually can get up to 250k unsecured, but even a guy with no credit can get 50K. Maybe you don't advise them it's for a speculative business venture, but perhaps to fix up house.

[Cali Coug]

Go to bank. Not hard, you usually can get up to 250k unsecured, but even a guy with no credit can get 50K. Maybe you don't advise them it's for a speculative business venture, but perhaps to fix up house.

Any idea on the term of such loans? Any suggestions on lenders with lower rates?

[Archaea]

Any idea on the term of such loans? Any suggestions on lenders with lower rates?

Unless you have mega wealth, go to a credit union or a local, smaller branch. Usually, unsecured lines of credit have rates tied to Prime, which prime is beyond me. Mine is one percent or three quarters of a percent over prime. It's below ten percent right now.

[bYuPride]

I started a business and would be interested in borrowing up to $25000 for use in the business. I only want to do an unsecured loan, just in case!

;)


Do you want a loan or a line of credit?! Many business owners prefer the line of credit even though it has a slightly higher interest rate than a loan because credit needs always arise in a growing business... or a sinking business can use the funds too. :) When going to speak to a business banker, make sure you ask them about origination fees, annual fees (either a flat yearly or a percentage of the line), it's nice to know if it's evergreen or not, etc. etc.

[bYuPride]

Go to bank. Not hard, you usually can get up to 250k unsecured, but even a guy with no credit can get 50K. Maybe you don't advise them it's for a speculative business venture, but perhaps to fix up house.

Don't listen to Archaea :)... if you are just starting up a business, you're not going to get 250k right off the bat. If you are a business 2 years or newer, the underwriters will look and at your personal credit and determine how much they will lend to you. The idea is that the business owner will exercise the same amount of responsibility with their business credit has they have with their personal.

[bYuPride]

Any idea on the term of such loans? Any suggestions on lenders with lower rates?

Generally 2-5 years. Wells Fargo business credit products are pretty competitive, but it's a good idea to look around.

[Jeff Lebowski]

$25K unsecured? Trivial, my friend.

And paying interest is for chumps.

http://www.cougarboard.com/noframes/message.html?id=1860360

[Tex]

$25K unsecured? Trivial, my friend.

And paying interest is for chumps.

http://www.cougarboard.com/noframes/message.html?id=1860360

That's a really interesting method ... I'm gonna have to look into that. :) You say some guys have their entire mortgages being held this way?

[Cali Coug]

$25K unsecured? Trivial, my friend.

And paying interest is for chumps.

http://www.cougarboard.com/noframes/message.html?id=1860360

I love it.

[Jeff Lebowski]

That's a really interesting method ... I'm gonna have to look into that. :) You say some guys have their entire mortgages being held this way?

I have two friends that did this to get rid of mortgages. One guy only had about $80K left on his mortgage. Not sure about the other one. I think it would be tough to do for over $80-100K or so. $25K is trivial.

The max I had floating using this method was around $40K. I did it for about a year just for fun, and to see if it would work. It was very easy to do, but I don't carry any debt like this at the moment.

[Surfah]

As soon as I have some equity I plan on doing this.

[BlueHair]

Capital One gives unsecured loans at 6.99% fixed. I also like the zero interest methods. I didn't get a home equity loan, I just kept tranferring the balances to different credit cards. It's getting harder to find cards that don't charge a 3% transfer charge. One of my credit cards offered me 0 percent for 6 months with a 3% transfer charge, but I called and counter offered. I was able to pay 1.99% for 12 months with no balance transfer fee. Not zero, but still good.

As a side note, it's not a good idea to transfer simple interest loans that you've had for a while. The bulk of the interest is paid at the beginning of the loan.

[Surfah]

Just tried this with a $5,000 line of credit from my bank and Discover card and it worked. I could have done more but just wanted to keep it low on my first go around.

Also, make sure that your bank doesn't charge any penalties for repayment of loans early.

[Mormon Red Death]

Wouldn't a variant of the idea be that you put the money in 12 month CD at say 7%?

That way you are making 7% off of money you essentially got for free

the power of positive arbitrage

[Jeff Lebowski]

Wouldn't a variant of the idea be that you put the money in 12 month CD at say 7%?

That way you are making 7% off of money you essentially got for free

the power of positive arbitrage

Absolutely. You could make a few extra thousand from home each year just by doing a little shuffling.

[myboynoah]

Absolutely. You could make a few extra thousand from home each year just by doing a little shuffling.

OK, I fully expect to see you on some middle-of-the-night infomercial with babes in bikinis at a swimming pool in the background as you tout your new foolproof money-making scheme. You'll offer tapes and seminars at local Red Roof Inns as you make your way across middle American like some snake oil salesman.

Oh Homeboy, you've stooped so low.

[Jeff Lebowski]

OK, I fully expect to see you on some middle-of-the-night infomercial with babes in bikinis at a swimming pool in the background as you tout your new foolproof money-making scheme. You'll offer tapes and seminars at local Red Roof Inns as you make your way across middle American like some snake oil salesman.

Oh Homeboy, you've stooped so low.

LOL. As I was typing that, I thought the same thing.

[Mormon Red Death]

Absolutely. You could make a few extra thousand from home each year just by doing a little shuffling.

Makes we wonder could someone make 75k a year doing this?

It would take loans of 1.5 million lets say you would have to get 31 cards (one not use to send balance transfers) of credit worth 50k a piece...

After you weather the storm for a couple of years you could make a nice little living