06-09-2013 09:07 AM
This is leveraging. People do it all the time. Some win, and some lose. 2k is not really too much to borrow, and you can easily cover any loss from the risk. If you really want the coin, go for it. Loss is easier to swallow than regret sometimes.
06-09-2013 09:13 AM - edited 06-09-2013 09:15 AM
I've done it, and was unsuccessful with the investment
I've done it and was successful with the investment
always had a plan to pay the credit off, or already had enough to pay the credit off if I wanted to but just wanted to float a balance instead
"don't invest more than you can afford to lose" applies to using retail credit as leverage too
I've done many successful trades and arbitraging
06-09-2013 10:24 PM
06-09-2013 10:24 PM
06-09-2013 10:43 PM
Imo listen to yourself.
You only have 2k in savings you can use, and $3,500 in credit limits. I'll be upfront and honest. Unless you have ATLEAST 10-15k in reserves for emergency funds, I wouldn't even dream of this.
Also melt value? How big is this coin that it could get $4,000 worth of gold? It better be bigger than something that the easter bunny would ever bring you imo.
In the end don't put all your eggs in one basket. Even Warren Buffett started with a mere $25 buying a Pinball machine to put into local barbershops. Even before at the age of 5 he purchased a 6 pack of coke and sold it for a nickel each to net a nickel profit. (5cents per pop or 6 for $25)
06-10-2013 03:13 AM
Unless you have a guaranteed rate of return on your investment which is greater than the interest you'll be charged, IMO it's not a sound idea. Especially since you'll be using a considerable amount of your available credit for the purchase. Investment and CC's just don't mix in my world. Investments are not guaranteed to net more than your total purchase cost, and they also require time to mature (which adds more volatility). Even If you break even with the initial cost of 4k, you're still losing the money spent on interest payment for the 2k borrowed. A financial loss however small, is still a loss. Just my opinion of course, do with it what you will.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.