How to Borrow A Lump Sum of Cash at 0%
It’s not often banks lend money for free. But there is a strategy that lets you borrow money without paying one red cent in interest – and it’s available to all Canadians. In fact, we’ve seen people borrow up to $90,000 interest free with this technique.
So who offers these ridiculously cheap, if not irresponsible loans? Canadian banks charge 7.5% for a personal loan, 5% for a line of credit, and 3% to its best and largest corporate customers. Is an interest free loan really possible? The answer is a resounding YES.
We’re talking about a little known product, offered through TD’s credit card subsidiary, MBNA Canada: a cash advance deposited into your bank account from your credit card, offered at 0% interest for 12 months. With a cash advance deposit, MBNA will deposit a lump sum of cash, as high as your credit line, into your bank account, with an initial transfer fee of 1% of the amount borrowed. But unlike most cash advances, you will pay no interest for 12 months!
Why It’s A Winner
Here are the benefits:
- The 0% rate is lower than any other line of credit or personal loan available;
- Get the cash deposited into your account within 2-5 business days;
- The direct deposit cash advances are personal and unsecured – unsecured at 0%!
- Use the money for any purpose: Pay off a mortgage overdraft or credit card payment, take advantage of items on sale, invest in stocks or home renovations, or get that something that can’t wait. There are no restrictions on how to use these 0% funds;
To get a cash advance deposit, all you have to do is apply for the MBNA Platinum Plus credit card. There is no annual fee, so it’s risk free. Once approved, you’ll be able to immediately request that cash be deposited into your bank account from your credit card interest free for 12 months.
The other nice thing about the Platinum Plus credit card is that it can ALSO act as a balance transfer card. You can transfer balances from other high interest credit cards and consolidate your loans onto the Platinum Plus card at the same 0% rate for 12 months.
We haven’t seen any other credit card issuers in Canada offer a published rate of 0% for 12 months for cash. In most cases cash advances and access checks start accumulating interest immediately at rates as high as 24.99%. That’s what makes this offer so tantalizing and outrageous. You’re getting cash at 0%, which is virtually unheard of in Canada. Hopefully we’ll start to see more banks coming out with similar offers. Until then this is the only game in town.
A Word of Caution to the Borrower
Warning: Cash advance deposit loans can be dangerous to people who can’t control their spending. Remember, the 0% rate for 12 months jumps to a higher rate after the promotional period of 12 months expires. If you’re not disciplined with money, we’d suggest you save before spending.
That said, for those more responsible, it’s not often banks give away money interest free, so when it happens milk it for all its worth!