Sorry for the delay in getting back to potential lenders. My day job demanded some late hours today.
I can finance this on my personal credit card at 9.9% APR however I am looking to refinance my house in the next six months and a $20K advance probably won't help my credit score.
If I can't secure a loan the backup plan is to wait for the refinance to be completed and then draw an advance from my personal credit card.
So this means that the LoC B is actually a 6-month long loan, at which point you would obviously refinance using your CC for the lower rate, correct?
Most likely although the loan can be canceled by either party with 30 days notice so it may be canceled prior to that. It is also possible I may refinance later than 6 months but most likely the loan will not be longer than 6 months.
You also mentioned home equity. I would never finance a business venture with home equity. That is just poor risk management IMHO. Saving a couple % isn't worth the risk of losing your home if things go south.
This statement doesn't instill confidence... I mean, if you got the loan from a forum member, you'd have to back it personally - so what's the difference between that and getting a HELOC?
HELOC is secured by your home. Indulge me a slight derail.
Nobody should ever get a HELOC for anything. Period. I know in this "cradle to grave" ultra-consumerism world we like in that seems insane but the US bankruptcy code provides significant homestead protection. A protection one voluntarily tosses out the window when they opt for a HELOC. Nothing is worth that. The equity in your home is the ultimate safety net. I have every intention of honoring my bills but what happens if I end up a comma for 9 months, I have to care for a terminal child, or my wife gets cancer and we rack up $3 million in medical bills trying to fight it. In situations like that most people (myself included) would be financially destroyed. By business, my savings, and my investments will likely all be wiped out. My good credit, my name, my reputation equally destroyed. It is also possible I would lose my job/income. After a financial anhiliation which wipes out everything you spent your whole life building you might still be able to keep your house ... unless you were foolish enough to attached what would be otherwise unsecured debt to your primary residence via the HELOC.
Of course banksters don't want you thinking like that. They want you thinking like a HELOC is just a lower interest rate credit card. SIGN SIGN SIGN get your free moniez.
