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Valued Contributor
dodgerslv
Posts: 1,681
Registered: ‎06-16-2012

Re: Investing with credit cards


dddewdrop wrote:

     I have something that I want to buy as an investment for about 4 thousand dollars. I have 2 thousand saved. I will have the rest of the money in 2 months but I am afraid someone will buy this thing ahead of me if I don't purchase it soon and I will miss it. What should i do? I have about 3500 in available credit from my Cap1, Discover, and Chase card. I could the other 2k on a combination of those cards or I could try apping for another card say a DCU card and hope for a higher CL. Or I could just wait and hope someone doesnt buy this thing ahead of me. I guess I should find a card with 0 percent interest for a few months and put the purchase on that.


well dewdrop, if you really want the item and want to buy it now then go ahead and buy it. Maybe you can ask for a CLI first, unless the accounts are new. If they are then apply for a 0% interest card. Not sure how your credit picture is looking but maybe you can try Barclays, or DCU like you mentioned. Just pick a couple of banks that you think you have a shot at (and are good at recon) and stop there. If no luck then i guess you could spread the purchase out with your current cards. Good luck.



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Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013

Re: Investing with credit cards

to add......

I do not recommend using spilt payments unless you absolutely trust this seller.

If for some reason you need to file a dispute later on, it's just going to be a lot of trouble having to file disputes and explaining the whole thing over and over with different lenders. A lot of accounts will show up as being in dispute as well in your CR until the dispute is over. That can affect your chances of getting new credit.

 

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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013

Re: Investing with credit cards

Thanks for all the replies. Just FYI, it isnt really a gold play. The melt value of the coin is only about 300 dollars. If it was however, gold is a bit off its highs right now. It was several hundred dollars higher a few months ago. It has had a hge  run up recently.  I am very familiar with what the 5 year chart on gold looks like . However there is huge short interest in the futures market right now from hedge funds. That means just about everyone thinks it is going lower. In fact, look at all the comments form people here. it sounds like just about everybody who commented on which way they thought gold was going :"knew" it was going lower on myfico also. When you take a poll of investors and everyone seems to think something is going down that is usually an indicator to buy. It is like put/call ratios in the options markets. When the majority of people are rbuying puts, it usuallly means an instrument is gonna rally. 

     I have never really been a directional trader however if you are interested in the subject I would recommend "reminiscences of a stock operator" by edwin lefevre which is about Jesse Livermore who was one of the most famous traders at successfully picking which way stocks were gonna move. 

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Valued Member
Agent86
Posts: 41
Registered: ‎06-01-2013

Re: Investing with credit cards

Unless you are absolutely guaranteed an 18% rate of return, or have a greater than 50% shot at 100%+ rate of return (and have an emergency fund), investing by credit card is just too risky. The only realistic investment that I can think of that would justify this is a 401k contribution where your employer is required to match and the match exceeds a year of interest payments you would make.
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Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Investing with credit cards

Trading in options is too risky to do with borrowed money... If you had a stable stock in mind that you somehow knew was going to go up, I'd be ok with borrowing the funds to buy the stock and hold it for 6-12 months.

 

I don't like the concept of day trading.. I like to buy and hold


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Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: Investing with credit cards

As a novice investor, I say go for it.
However, consider what it would be like if you LOST THE WHOLE AMOUNT INVESTED....!
Would you be able to still live and pay your bills?
As 24 year old, I'm all about the risk...but I've got like 40-50 years to go til I retire haha.
Good luck either way.
Also, worth mentioning that if you're buying some type of tangible asset, such as idk..gold, a car, a motorcycle, guns, etc. Consider what the resale value is if you need to get cash asap. In the end, it's about maintaining cash flow to service your obligations. Really delve into what the real cost is. I say a new app may be necessary IF this is a good idea.
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Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: Investing with credit cards

I will sometimes buy and hold for 3-6 months, and get ROE and dividends 😏Btw, I got rid of all my REITs within the past month. THANK GOD! Haha 😳
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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Investing with credit cards

I wouldn't do it. Not worth the high util and paying interest on it.




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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013

Re: Investing with credit cards

I figure with my next paycheck in 2 weeks I could pay  off the rest of whatever i needed to borrow.    Buying a coin which has been professionally graded and certified is a relatively safe thing. It is not as if you are at risk of it losing 50 percent of its value or anything like that. My plan was to buy a coin and put it in a safedeposit box for 25 years and see what is is worth after. Btw I was a professional option trader of 14 years. I was an equity options marketmaker at the CBOE in Chicago which means i was a sort of bookie for stock options on the trading floor. I was the specialist in a few stock options which meant that anyone who wanted to trade options in those particular issues had to go through me. It was a very interesting, exciting, and risk business especially when takeovers and mergers, splits and other special situations were thrown in the mix...

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Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Investing with credit cards


dddewdrop wrote:

I figure with my next paycheck in 2 weeks I could pay  off the rest of whatever i needed to borrow.    Buying a coin which has been professionally graded and certified is a relatively safe thing. It is not as if you are at risk of it losing 50 percent of its value or anything like that. My plan was to buy a coin and put it in a safedeposit box for 25 years and see what is is worth after. Btw I was a professional option trader of 14 years. I was an equity options marketmaker at the CBOE in Chicago which means i was a sort of bookie for stock options on the trading floor. I was the specialist in a few stock options which meant that anyone who wanted to trade options in those particular issues had to go through me. It was a very interesting, exciting, and risk business especially when takeovers and mergers, splits and other special situations were thrown in the mix...


For a rare coin, I would do it...  The item won't lose value and I consider it akin to buying a four wheeler with half the money down. The difference is that the four wheeler would depreciate whereas I do not believe that your coin will. It may actually be a nice hedge against inflation as the "collectible item market" is way down right now due to the economy.


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