IBKR Debit Mastercard
Has anyone gotten the Interactive Brokers Debit Mastercard and could share their opinion of it? Was the approval process easy and fast? What do you use the card for? How much of a portfolio did you pledge to secure the loan? I am looking into it as a way to finance a down payment on a house without liquidating my stock. The rates are very attractive compared to other brokers. But I’ve heard IBKR is difficult to deal with, has bad customer service, does margin calls with no warning, and I’ve tested their TWS platform and it’s not very user-friendly (to put it mildly). #personalfinance #IBKR #lineofcredit #housing
Why do you need a credit card with low APR? That seems like the main draw? I feel like cashback is the meta at the moment.
It’s not a credit card but a loan backed by your stock portfolio. You pledge a portfolio as collateral and you can borrow up to ~85% (depends on holdings) of the portfolio value. It’s marketed as a debit card that draws directly from the line of credit and you can use it for everyday purchases, but it’s most often used for large purchases, like homes, yachts, etc.
If you go 85% you are going to melt your face off when you get a margin call. It uses margin.