Who wants Money? - New Business Idea

[melvins]

I have been thinking of this idea for quite sometime. Please provide your valuable feedback if this will work or not.

Hope you are aware of the Pay day loans. Some companies will give you a small loan and they will automatically deduct the amount from your bank account on your pay day. They will charge a fee (interest) for this loan.

My business Idea is to give a small loan against your credit card. This is almost similar to getting cash advance from your credit card. Credit card companies charge huge interest for cash advaces from day one. Here the fee would be less or equal as normal purchases. This idea would be similar to shopping online only thing here is you are buying money for a fee.

The idea is to have a website and you can go and get cash against your credit card and the money will be deposited to your bank account overnight and the bank will pay me when I submit your transaction to the bank. I will collect a small fee (interest) for the money that I'm paying you overnight. The advantage is you dont need to pay huge interest for this as cash advance. You can pay back the credit card due whenever you want. No paper works, etc.

I know the card providers (banks) will go against this as they loose money interms of cash advance interests. Not necessarily though. But some entry level banks and community unions will be ready to sacrifice this moeny to get more credit card customers.

Please provide your valuable feedback on this if I can proceed with this.

Thanks in advance for all your inputs.

[rob2009]

I am pretty sure this has already been done in most places, good luck with it in any case.

[melvins]

Thanks for your reply. Do you know any website that offers this kind of service

[SSM]

Google "cash advance"

[melvins]

I did google for Cash Advance. Everyone is requires a Pay Day or a Fixed Income Deposit. They all require a definite way to collct the money back from you. What I offer is just your credit card. I pay money to you and your bank pays me back and you pay to the Bank. I dont need to verify if you are working or you have a regular pay stream or a fixed incode or about your credit score. All you need is a credit card and a bank account. Basically it's an alternative way to get cash advance from your credit card for less fee.

Any comments?

[SSM]

You can go to an atm and do that with a credit card.

[melvins]

Yeah thats true. But there is a high interest and cash advance fee associated with it. The interest rate is normally ranges from 20 - 28%. Also there is a daily limit for cash advance from ATM.

[EntrePR]

Yeah thats true. But there is a high interest and cash advance fee associated with it. The interest rate is normally ranges from 20 - 28%. Also there is a daily limit for cash advance from ATM.

Dude, do you have any idea what the APR works out to for the payday loan people? 28% aint nothin. Try 300-1000%. http://en.wikipedia.org/wiki/Payday_loan

I would seriously look towards a line of business that doesn't take advantage of poor and desperate people. Then you might be able to sleep at night.

[akula]

fucking loan shark

great achievement there, buddy

"small loan against your credit card" means that you will be writing loans to people who are getting a debt using even more debt

this is the same as using a credit card to pay off another credit card

your business is gonna be trawling casinos for gambling addicts, and public hospitals looking for crack addicted single mothers who can't afford to buy diapers