Can i invest with a credit card?

JohnRo

I've funded a full ISA allowance with a credit card before but not directly, it requires a second mule card that will refund balance transfered credit to an associated current account.

It caused a few problems, I had to deal with the mule bank's gestapo and decided I won't do it again but wasn't doing anything against the rules.

jamesperrett

Borrowing money to fund investments is nothing new - apparently my grandfather back in the 1930's or 1940's used to keep his house mortgaged even though he had enough in investments to pay the mortgage back. Today there are money transfer cards that would allow you to transfer money to your bank account which could be spent on whatever you like. The interest free period may be shorter than with a balance transfer and fees slightly higher but it is possible - though not something to be recommended unless you appreciate the risks involved.

JohnRo

The trick is to do it with zero fees.

IanSt

jamesperrett wrote: »

Borrowing money to fund investments is nothing new - apparently my grandfather back in the 1930's or 1940's used to keep his house mortgaged even though he had enough in investments to pay the mortgage back.

Investing using borrowed money is fine if you've comfortably got the means to pay the money back from other sources - but I can imagine there were a lot of people who tried to do a similar thing in the 20's and ended up in a rather more uncomfortable position

atush

Oliver1191 wrote: »

I actually really like the idea of taking a small loan to fund my lisa for this tax year...

I dont. I think it would be unwise in the extreme.

You seem to have a lot of energy and interest. Which is good. So focus instead on cutting your outgoings, and saving some money to invest. Only have 50 spare a month? Then go ahead and out 50/m into a S&S isa.

But if you are thinking of borrowing to invest- this means to me you dont have an emergency cash fund. Which you should have before you invest.

ValiantSon

IanSt wrote: »

Investing using borrowed money is fine if you've comfortably got the means to pay the money back from other sources - but I can imagine there were a lot of people who tried to do a similar thing in the 20's and ended up in a rather more uncomfortable position

There were. The rise in speculative investing through buying on the margin was one of the major causes of the Wall Street Crash. It was also, consequently, one of the major causes of the ensuing collapse of American banks and the immediate and deep impact on the living standards of large sections of the American population.