Most serious question I found on web is
“What can you not buy using a credit card?”
and the most funniest answer was
“Time Machine”
But jokes apart, its really one of the most interesting question being asked on social platforms —
Really its a million dollar question …
Can a credit card can buy anything in this world?
In fact last time when I traveled to Guatemala the main requirement of VISA sanction was that I should have an international credit card! and not only the VISA officer checked it during approval, but also the customs officer at Guatemala airport checked it!! WOW I never thought that to enter a country I MUST OWN A CREDIT CARD!
Anyway coming back to main question on ….
8 Top Things That You can’t Buy Using Your Credit Card in 2020
1) Can I buy stocks using credit card? NO
2) Can I Use My Credit Card for Online Gambling? NO
3) Can You Buy Lottery Tickets With A Credit Card? NO
4) Can I Pay a Credit Card Bill With Another Credit Card? NO
5) Can I Repay Mortgage Payments using credit cards? NO
6) Can you charge chips to your credit card at any Casino? NO
7) Can I buy a money order with a credit card at the post office? NO
8) Can you buy cryptocurrency with a credit card? NO
1) Can I buy stocks using credit card?
No, you can’t buy stocks using your credit card.
Before you even think of using your Credit cards for buying stocks, do note that credit card companies normally charge 18% interest, which means your stock investment using credit card money shall earn more than the interest at least!
In tern by using your CC for purchasing stocks you are already overpaying the stock value by 18%, so there are more chances that you are spending more than what you might earn!! Unless you are a genius 🙂
Anyway most of the full-service brokerages do not allow to use a credit card to fund your account.
However with exceptions, some of the micro-investment platforms do allow use of credit cards (example of such firms are Acorns and Stockpile)
Such micro-investment platforms allow using the credit card, say for an example ….
… Acorns invests the pocket change in exchange-traded funds (ETFs)
… or Stockpile allows funding your account with a credit card, which can be used to purchase stocks, however when you sell your stocks, the amount goes back to your checking account and you need to settle your credit card bills as separate transaction.
So Can I use cash advance of Credit card to buy stocks?
Yes, you can buy stocks using cash advance method.
I know this is easy way anyone can think of, however this is the most stupid thing to do!
Cash advance means your credit card company will charge fees against cash advance along with the interest fees if not returned in stipulated time cycle.
So even there are no complications on the stockbroker front since he is getting cash deposited into the brokerage account and remains unaware by what means you have got this cash. In tern its your responsibility to invest in right stocks and get money out of it!! which is more than whats being charged by the CC company.
So finally borrowing money to buy stocks might turn the deal down and mostly landing you in debt rather than making you rich!
So please avoid doing such tricks!!
2) Can I Use My Credit Card for Online Gambling?
In the year 2006, United States passed the Unlawful Internet Gambling Enforcement Act which makes Online gambling illegal. The law made it illegal for businesses to transfer payments between gambling companies and consumers.
Hence most of the credit card companies do not allow you to use their credit cards for online gambling and your transactions will be denied for authorization, when they see that you have requested money transfer for online gambling.
Refer Unlawful Internet Gambling Enforcement Act
3) Can You Buy Lottery Tickets With A Credit Card?
No you can not buy lottery tickets using credit card in 29 states in USA.
So out of 50 states only 21 states allow you to buy lottery tickets using credit cards, that too if the lottery ticket merchant accepts credit cards for lottery tickets.
29 states, including Washington D.C., do not allow purchasing lottery tickets with a credit or a debit card as per state laws.
Also in other 21 states, even the law allows you, its not binding on the lottery company, and they may deny transaction against credit card purchases, please note.
Anyway, again like the stock buying … using credit cards for gambling is not a good idea.
As the chances of winning lottery are almost rate, you ought to pay credit card bills in the next cycle for sure!!
4) Can I Pay a Credit Card Bill With Another Credit Card?
No, you can’t Pay a Credit Card Bill With Another Credit Card.
To say, you can’t just enter another credit card’s number while paying the monthly credit card bill … the system won’t allow it.
Of-course most of the times, you can transfer the pending credit card bills to another credit card company, however in such cases also credit cards generally charge balance transfer fees of 3% to 5% of the amount transferred.
And the balance transfer takes time to verify application, process it and get approval, which might take weeks, and generally you don’t earn rewards on balance transfer!
5) Can I Repay Mortgage Payments using credit cards?
No, Mortgage lenders will not accept credit card payments directly.
However you can use some workaround methods.
As an example, you can use third-party payment service like Plastiq facilitates.
Plastiq facilitates allows mortgage payments with a Discover or Mastercard credit card for a fee equaling 2.85% of your mortgage payment.
Note – Visa and American Express don’t currently allow mortgage payments through this service.
(Please check https://www.plastiq.com/ for latest fee structure)
All that you might gain are the reward points, however again this will be against the charges of third-party vendor, which will turn out to be a false deal for you, loosing money in final math!
6) Can you charge chips to your credit card at any Casino?
No, most states in USA prohibit casinos from accepting a credit card for gambling chips.
Not only the gaming regulations that prohibits use of credit cards for buying gambling chips, but also the industry’s own Responsible Gaming Program bars the practice
Further the credit card companies like Visa and MasterCard also don’t allow merchants to accept credit cards for gambling chips.
Again you might think of getting cash advance against credit card and buy casino gambling chips, but this will be foolish and most expensive option to go for.
7) Can I buy a money order with a credit card at the post office?
No, United States Post Service, do not accept credit cards for money orders.
In similar lines Walmart, MoneyGram money order providers, do not accept credit cards as a form of payment for money orders.
However Western Union and 7-Eleven do allow you to purchase a money order with a credit card.
Thing that shall be kept in mind is that Capital One, American Express, Chase and other credit card providers do consider money orders a cash equivalent, hence your transaction will be treated as a cash advance rather than a regular purchase fetching cash advance charges.
8) Can you buy cryptocurrency with a credit card?
Bank of America, JP Morgan Chase, Citigroup, Capital One, and Discover in the USA, Virgin Money and Lloyds of London in the UK, and TD Bank in Canada are the top credit card issuers who have banned cryptocurrency purchases in early 2018.
However as per our info, American Express allows crypto purchases, readers are advised to check their website for the current status in US.
In case you mange to buy cryptocurrency using Visa or MasterCard, mostly this will be treated as cash advance fetching a cash advance fee and a higher interest rate for the transaction.
References for writing this post are –
Refer Unlawful Internet Gambling Enforcement Act
Ref Tophunt
Leave a Reply