As of 2009, getting a loan from a bank to start a business is almost an impossible task. Even at nearly 0% federal rate, banks are still not making any loans. So if you’re strapped for cash, you might want to turn to preapproved sources such as your credit cards.
A Source Of Cash
The great thing about credit cards is that banks tend not to decrease your credit line, but only increase your interest rates. So whenever possible, you should attempt to increase the available credit on your credit card, just in case you might need it some day. It’s a great way to get a source of cash when you need to with very low monthly minimum payments.
A Low Interest Loan
Oftentimes, credit card companies send you offers for balance transfers at extremely low interest rates. For example, about a year or two ago, I got a balance transfer offer from Capital One for just 3% for the life of the balance.
If you’re borrowing at only 3%, you can invest in almost anything and get a higher return than that! Hey - it’s just free money lying around, when not take it?
Furthermore, the minimum payment is just around $40/month, so it’ll take me years to pay that off, gaining interest on the loan this whole time!
Make sure to watch out for these opportunities whenever they arise, as credit cards give you a cheap source of cash that is cheap to finance and great for the long term!