Quote:
Originally posted by skier
Haha ok I was buying into some hype that was associated with my excitement. But this really is a solid investment opportunity, with suprisingly low risk, and right now after doing a fair amount of research i'm figuring that the appreciation will be somewhere between 7% and 12%, annually. Do you think private investors would invest in a flat rate of 6% or even 5%?
What in your opinion is the best way of getting that second card? I'm confident I can get a card through my local bank, but am unsure on how to get the next one. The loan you discussed is something I would get now and pay off over the year right? I'm wondering what a "secured" loan means. How can I secure a loan, and what advantages/disadvantages does this have over a non-secured loan? Sorry for all the questions, i'm relatively new to credit-debit systems because of a preference of dealing in cash.
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It really depends on the investor. Nowadays, 5% is a very, very high percentage to earn if you are are basically going to guarentee them that they will not lose any money, and require either no or minimal amounts of time that money will be "locked in" with you. Basically, I think you have a pretty good shot of getting some private investors at 5% you can guarentee that they will not lose money (by replacing it with your own) and that if they do invest with you, they are only required to keep it there for 1 year or less. To be honest, unless they have some type of emergency or something, I would imagine most will keep it there untill savings/certificate of deposit rates increase dramatically. Currently, in my area, savings account rates are at about .25%, which is absolutely terrible.
It doesn't really matter where you get your second card. I would imagine that you probably need your parents to cosign for you, but that won't really be an issue as far as credit-wise, as it reports the same whether you are on it alone or you have a co-signer. You could probably check with like Capitol One or some other major credit card company.
A secured loan is basically money borrowed to you with the lender using something as collateral. Some examples of secured loans would be a car loan, a mortgage loan, or a savings/cd secured loan. In your situation, I probably would do the cd secured loan. Basically, you should be able to go into a local bank/credit union and and give them $500 dollars to put into a certificate of deposit. Put it in for 1 year, and at the same time apply for a cd secured loan. What they do is freeze the funds in that CD, so you cannot withdraw the funds without paying off the loan (however, you can use those funds to pay off the loan if you must) I would apply for a $500 Cd secured loan, with the amortization being either 6 months or 1 year if they'll allow it. There is a very high likelyhood of it being approved without a co-signer, as the bank gets their money even you default on your loan. Then just make your payments (on time) each month till it is paid in full.
Secured credit is usually looked upon as "good" credit on your bureau, as opposed to unsecured credit (ie credit cards, personal loans, or any other debt that you carry that has only your promise to pay backing it up)
Don't worry about the questions, that's what I'm here for
If you need anything else, please don't hesitate to ask...
Cynthetiq is right, lol... feel free to let us know what the investment is - if you don't want "everyone" to know... feel free to send me a PM