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My idea is to ask for several more credit cards through other lenders until my overall max is 50,000 and then use the personal line for all expenses until it`s maxed and then "balance transfer" the entire balance to a credit card and then keep using the personal line/balance transfer until I`ve used up the entire 50,000 capital and hopefully at that point my projections are right and I start getting some revenue...
Obviously I need to be really careful and look for good deals that have low interest rates/fees on balance transfers.
My question is if this is really possible?? I plan on quitting my job when I`m ready to make the plunge (obviously after I have the credit accounts I need), but I`ve heard that lenders can lower your credit limit as soon as they get nervous that you won`t be able to pay things back --- As long as I`m making the minimum payments am I safe, or could that really happen?
With wells fargo my minimum payment is 1% of balance + interest and their balance transfer interest is only 1% per month, so if i used $50,000/12 months (a little at a time, not all at once) with these type of rates, I should be able to make the minimum payment for a full year for under $10,000, but at the end I`ll have $50,000 debt and a $2,000/month minimum payment so at that point I have to be getting some revenue or I`ll go bankrupt...
I understand that a lot of rates are for only a few months and then they change, etc, I know I have to be really careful how I do this, but is the idea ok or not possible? I`m not trying to avoid the interest by passing money around, It`s just that I can`t get a personal line for $50,000 and so I need several lines, cash advances are obviously way too expensive, but 10%-15% interest is fair and reasonably and I can afford it, as long as this idea is possible with credit cards...
Can anyone give me some ideas/clarification on this and if this is possible? My other option is to go through the business loan process, but I`d rather due personal because it`s less headache..
I realize that anyone looking at this has many questions about what my budget/plans are because it sounds like I`m way too optimistic or I`m forgetting things, but I really do have things written out well as far as the business goes, i`m just to the point of figuring out the best way to finance the thing --- I`d like the easiest way with the least loss of control (personal loans), but I know it may not be possible and may need to look to business financing/angels... If any more information is needed feel free to email me, I just don`t want to get into all the details and make this really long.
Thanks,
Devin Garner
devingarner@gmail.com
