Standard Chartered Personal Credit

I have been receiving "cheques" from Standard Chartered Bank lately.

Basically, these cheques are given to me in letters which they have been sending.

So far, I have received 2 cheques.

The instructions states: Simply bank in the attached cheque and enjoy cash at 0% interest for six months with just a nominal fee of 2.5% on the cheque amount.

No gimmicks, No hidden cost?

It says that the promotional rate of 0% interest is valid for 6 months and thereafter, the prevailing interest rate applies. I am not too certain what is the prevailing interest rate for this credit line.

Still, it sounds like a pretty attractive option doesn't it?

I get a cheque for $8000. The 2.5% nominal fee adds up to $200.

So after 6 months, all I need to pay back will be $8200. If I am able to use this money to buy some stocks and the stocks happen to rise in price... I will be using Other People's Money to make money!

But of course, the reverse could happen where the stock prices are depressed after 6 months and I could be stuck in a serious quandry. To liquidate the stocks at a loss and still pay up the $8200.