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How To Borrow £10,000 to £30,000 with your credit card
You should already have read our guides "How to obtain a first class credit rating", "Have any major credit card you desire" and "How to raise £100,000 in two days".
Having achieved a first class credit rating as outlined in our first guide, and then gone on to apply for a credit card from the six to ten banks with which you will have transacted business, over a period of time of conducting transactions, your credit limit will have gone up accordingly.
Your starting credit limit will be modest to begin with, but as ever, by conducting your
credit card account in a satisfactory manner, this limit will be raised. To help raise a credit card limit, if you use the card for either buying goods and services, or taking cash loans, up to the actual credit limit of your credit card, and paying back the sum loaned at the end of the month or whenever the payment is due, the credit card company will offer you an increase on your credit limit.
Once they see you are conducting your account in a satisfactory manner, and conducting the account to your credit limit, increasing this limit will not be difficult. Always ask after a month or two; the worst that can happen is for them to refuse or suggest you continue with the credit card for a further period, after which they will review your limit.
After a period of time you could find yourself with a credit limit of between £3,000 to £5,000 per credit card. As with the small loans you began to take out with the original six to ten banks, a modest £500, when multiplied by 10 banks becomes £5,000. The same principal applies with credit cards. A credit limit on your card of £1,000 will be a total credit limit of £10,000 if multiplied by 10 credit cards.
Over a period of time of good conduct and card use, if you have achieved a credit limit of £3,000 per card, if multiplied by 10 cards you have £30,000. Achieve a higher limit than that? Then the total when added all together will be even greater.
As you can see, this all goes back to your initial investment of £500 in a high interest
savings account as a security for a personal loan for £500, multiplied by six different banks; the programme you began on the road to obtaining a first class credit rating. Once this rating has been achieved, credit cards and loans are possible; without it you will get nowhere.
What should you use this instant cash from credit cards for? We all know that money borrowed this way has a very high interest rate, so you would use it if there is no other way to raise the amount you require, or if there is no other way to quickly raise the money you require.
Let's say you are familiar with printing machines, or any form of goods, and know that a factory unit has to be cleared in a few days. You know the machinery could be sold for, say £15,000 with very little effort (you would need a place to store it). The price being asked is now down to £7,500. You buy the machines, advertise and sell soon after having bought the machines. You have made say, £7,000 plus in a short period of time.
Had you not been able to get your hands on this cash in the first place, you would not have this £7,000plus as a profit - you would have nothing. As soon as payment is received for the machines, pay back the credit card companies. Do check with each individual card company whether interest is payable from the day you take the loan to the monthly invoice, or to the day repayment is made if sooner than the issuing of the monthly invoice.
Property can be a marvellous investment, but it is always a long term investment as far as credit card finance is concerned. To use this form of quick finance you need to buy and sell quickly. At interest rates often 20% or more, remember to be very careful, least you are left paying high interest on a deal that did not work out as well as you expected. Take care.
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