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/biz/ - Business & Finance

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25797364 No.25797364 [Reply] [Original]

what's stopping me from taking out an infinite amount of loans and paying them off with the next bigger loan I get until I have a $1 million loan to buy crypto with and 20x my money this year

>> No.25797387

you are poor and have bad credit

>> No.25797412

>>25797364
you need lots of income + amazing credit to do that, retard.

>> No.25797431

>>25797412
what's stopping people with lots of income + amazing credit from doing that

>> No.25797436

>>25797412
unless...

>> No.25797481

>>25797431
They already have the income so they don't need to gamble on shitcoins.

>> No.25797485

>>25797364
The first loan will show up when you apply for the 2nd loan and you will be denied further loans until you pay off more debt. So that plan won't work.

You could take out a single, large personal loan and instead of paying it off just invest it and just not worry about your credit afterwards I suppose.

>> No.25797490

>>25797364
>infinite amount of loans
where do you get the loans from ?

>> No.25797503

>>25797431
Why would people with lots of income + amazing credit try to execute your niggerscam ?

>> No.25797515

>>25797431
having money already, not worth the risk

>> No.25797524

>>25797364
>what is leverage

>> No.25797580

>>25797364
nothing
look into aave anon
take loans to buy more crypto with it

>> No.25797980

>>25797364
Because of the possibility of crypto actually crashing and not going up and you lose everything.

>> No.25798023

>>25797431
they are already doing this, how do you think they get even richer

>> No.25798081

>>25797364
I can do this if you have a collateral asset that keeps rising in value.
It is how bezos and musk finance their lives

>> No.25798103

I mad a loan and put on bitcoins

>> No.25798225

>>25798103
>made

>> No.25798717
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25798717

>>25797364
Your credit reports mainly.
Every time you request a line of credit (loan, credit card, mortgage, etc) the potential lender runs a hard credit check on you (soft credit check has less information and doesn't hurt you if someone runs it; each hard credit check stays on your credit report for two years).
Also for each line of credit you successfully get access to there's another record of this on your credit reports along with how much you're using from it compared to your income.
So pretty quickly into this process you would get rejected and stuck paying off the rest of your loans with real money.

>> No.25798866

>>25797364
Your credit score gets fucked.

Banks actually do this on the other side.

>> No.25799080

>>25797431
>what's stopping people with lots of income + amazing credit from doing that
People with the highest credit scores usually get really protective of their peak good credit status and would be too afraid of getting downgraded to some lesser score bracket.
Lenders play in high scorers' egos by giving them exclusive offers to those cool ultra-high spending limit black cards and they'd rather continue being in that club than try to scam themselves a small fortune and run away with it.