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.
