I can’t get credit

You get the capital without the tax event. The same reason people mortgage their homes.

But at 12% on a collateral loan. HELOC is also limited to amount you can borrow by percentage of LTV and also at more favorable rates without care or concern by the bank what you did with the money so long as at least interest is paid on time and ALSO at more favorable rates than 12% (usually prime+ X%). 0% credit card gives you one year with terms that you must pay ENTIRE balance within 1 year or face penalty of full interest charges. Basically, I just don't see benefit to a 12% collateral loan with a 50% LTV and call at 70%. The other two (but one needs a home for one) are more attractive. And ULTIMATELY leveraged investments are super risky. But, hey, it's your money. Do what you want with it.

The downside of being completely opted out. You can, and did, get credit but you pay the price. In this world there are those who can get just enough credit, those who get way too much, and those who can't get it at all traditionally so they get stomped. This will change with more recognition and competition. Ledn gets away with 12% because of a lack of competition in the space.