Stock portfolio as collateral for loan

[Hillary Hutchens]

Hello, 

Has anyone used their stock portfolio as collateral without a W2? Looking for lenders who will do this for North Carolina. 

[Rob Harnden II]

Find out from your broker how to borrow "on margin". That is how you take out a loan against your stock portfolio. The amount you may borrow depends on the individual stocks. For many, you can borrow up to 70% of the current value. But for some of the lower rated ones you may be limited to a lower percent, and on some, you may not be able to borrow at all. An advantage of borrowing on margin is that it does not show up on your credit report. But a disadvantage is that if your portfolio drops in value too much, too quickly you will be required to pay the money back within 2 or 3 days. Be careful.