Week 3.1 Getting a Personal Loan To Invest. Credit Card Cash Advanced
Just like any properties investment.
Invest now with your future saving.
Do it if you are confident.
Credit card is another option for anyone to forward spending your investment. The best deal is EON Bank call for Cash. If you can get a better deal than this one, let me know. If the nominal (effective) interest rate is more than 10% per annum then there is no need to consider.
My choice is the EON bank Call for Cash 6 months deal, the interest rate is 2.99% after 1% rebate it is 1.99%. For those who cannot afford 6 months can take the 12 months deal, the interest rate is 4.99% after 1% rebate it is 3.99%. There is zero transactional cost no stamp duty etc. Everything can be done over the phone. Just add RM2 for inter-bank fund transfer. The maximum loan amount must not exceed the credit limit of your credit card. The fund should be transfer to your account within 3 working days.
6 months deal
For RM10,000/- loan, the upfront interest of RM199/- is payable on the first month.
The remaining balance is paid in 6 monthly installment of RM1666.67 from 2nd to 7th month. The nominal (effective) interest rate is 7% per annum. Thus, it the best deal in town. No transaction cost.
You saw UOB is selling gold at attractive prices now but you have no cash to buy. By the time (6 months later), you have the cash, the price may have gone up a lot. Thus, you can borrow some cash now from your credit card via EON bank call for cash to buy the gold. Within 6 months, if the gold price goes up by 3.5% you break-even. Is it a good deal? Think about it.
12 months deal
The 3.99% interest is payable on the first month. The installment is payable starting from 2nd to 13th month.
For RM10,000/- loan, you pay an upfront interest of RM399/-. The remaining balance is paid in 12 monthly installment of RM833.33. The nominal (effective) interest rate is 8.1% per annum. Thus, it the best deal in town.
Within 12 months, if the metal goes up by 8.1% you break-even. Is a good deal? Think about it. If it is a good deal then it time to get your EON Bank credit card now.
Caveat
You must pay your installment on time if not the bank will charge you 2% interest on whatever due to them.
All Call for cash application is subjected to EON bank approval.
If EON bank remove the 1% interest rebate then you may have to recalculate the nominal (effective) interest rate again to see whether it is worth while to get the loan or not.
Note: If you buy at peak prices, you be worst off.
Lesson Learned:
A tip if known by the masses is no longer a tip. Thus, progress depends on how early you execute your ideas when you get to know it.
Public bank credit card flexi-payment is also a good deal. The promotional rate is finishing soon. - 0% for 6 month installment, 1.5% for 12 months and 5% for 24 months. All one time upfront payment. This is the best in town... but as usual... pay ontime else interest will change.
ReplyDeleteAlso note that Malaysia is unique and multiracial,if you are looking for personal loan. Best rate from Bank Islam / bank Rakyat usually offer around Bulan Ramadhan, just before Raya. (if no special deal, there will be lucky draws!). While best credit card flexi rate will appears sometime from before Christmas to after CNY period, from local community banks. There is no points using foreign banks for loans as their rate is extremely high.
ReplyDeleteAnd finally, "use for investment, not spending!!!"
it is better to buy slowly and hold on it than buy quickly then regret, sell quickly. Just like buying properties or share. Precious metal is in secular bull market, it wont be over tomorrow, it still have a long way to go. Secular bull market is like shares bull run from 1970 to 2007. (37 years) properties 1970 and still going for ASIA, perhaps will end soon. (40 years++)
ReplyDeleteUse instalment to stockpile food/necessity items is not a bad idea too. They are commodities too. food inflation may run above 10% per annum as the world is not in a good shape.
ReplyDeleteAgreed with what tan said...Diverting a bit on topics, but anyone know how to hedge on peak oil? apart from using pm.
ReplyDelete1. credit card if someone (merchant) Seller pays the 2-3% commission then the bank can offer you 0% interest,
ReplyDelete2. Peak oil very big topics will post when i have the time.