£20,000 on credit cards?

NAN63_2

I require £20,000 to serve as an income for at least a year to help set up a business. It seems the best option is to use credit cards as they are most flexible and offer 0% interest on balance transfers for up to year after which minimum monthly payment could be quite manageable. Has anyone borrowed this much amount of money on credit cards?

I have two existing credit cards so from what I can gather i would need to borrow the required amount on these and then take out another two/three credit cards which has 0% interest which could then be used to pay my existing cards off. I am sure this will not be simple as it sounds. However, my credit score is good and I am in a well paid job with my own house (mortaged). Grateful for any advice?

Paul_Herring

If you're setting up a business, you're probably better off looking for venture capital rather than relying on credit cards. (http://www.bvca.co.uk/index.html)

Bear in mind that the financial institutions are cutting down on the 'global' amount a person can borrow, and you may be hard pushed to raise £20k on cards.

Note, also, that the cost of getting this finance will not be 0%, but 2-3% (The fee they charge to balance transfer.)

going2die_rich

If you house was bought back before the house prices jumped up (i.e. more than 5 years ago) you would probably be much better off at just getting the equity of the house in a secured loan as secured loan payments are better than unsecured ones. (IF this seems like a good solution, ask on the mortgage board about how to do this and the best places to look). You could even renew your mortgage to include the £20k you require so may not need a third party to borrow money off. Although I'd be quick about it as interest rates are rising so if you were to renew a mortgage you'd want to get it on the lowest rate you can.

Hope this helps,