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Frytown, Iowa | Got an offer in the mail... you know, the 0% till 2020*******
********disclaimer disclaimer blah blah by the way it’s 3% up front to transfer and if you don’t pay it off all at the end or miss a payment it’s 14.99%
So say a guy does it right. Doesn’t miss a beat. Uses it like an operating note. Mine by the way is 6.25% so could I save some interest money?
Anyways the catch is not only the 3% transaction fee but also monthly payments starting immediately so the loan is not only 3% up front instead of termed out but also you start paying it off meaning the “loan” is not a true loan for full value. Like you borrow 10,000 and it’s 300 up front which would be cheaper than 6.25% or 625 but with the opp note you don’t have to pay any of it back till the end meaning you get a full 10,000 for the duration where the credit card only gets you 10,000 till the first billing period.
Anyone ever done these for an opp note and what is the “true” interest on loaned money? In the end if you only have 5000 borrowed and payed 5000 back in the time frame then you payed 3% on 10,000 but only have 5000 loaned out? That would be double 3% at the end.
So my thinking is it’s closer to 4.5%? With big risk if a missed payment occours
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Loan math...
