I am currently looking to use some of my line of credit to make a long term investment and purchase a higher end wotc box, has anyone else done this? And if so would you recommend it? Current interest rate is 0.006% per month so on 10k id pay $60/m.
Let me know your opinion!
Thanks
Theoretical question - if the box you buy tanks in price, let’s say down 50%, and stays that way for 3 years before it starts to slowly creep up again, you cool with that?
sounds like any profit from increase in price would be eaten up by the interest you’re paying
IMO, this isn’t the correct way to use credit cards. I don’t think it’s wise to be buying things (let alone “investing”) with money I don’t have. That said, I think it’s smart to use credit cards for their cash back and sign up bonuses. But the best way to do this is to always pay off the balance before it’s due.
Opinion is no - don’t go into debt to buy Pokemon cards. Only invest money you can afford to lose at the moment.
What bank is letting you do this and why?
This will tank your credit score if you have your full line of credit all or mostly unpaid month after month.
Credit cards can absolutely be used effectively to do this. People are way too afraid of credit cards.
This is a credit card company’s dream scenario! They make a huge portion of profit from interest payments. Why do you think you’re [or at least I] am always getting spam mail about new credit cards and new loans I can take out?
You should go watch reserved investments on YouTube before you do anything. Very informative
Just get a zero % interest credit card. I have one - get to pay zero interest for the first 18 months after I open it. 18 months go buy I open another one. Interest free loan for life (not only interest fee… but they pay you cash back on every purchase). All you have to do is pay the minimum every month. I’ve had it up to $15,000 and the minimum was like $100, crazy. Again that minimum goes STRAIGHT to principle, there is zero interest.
I need to learn to put more info into my posts lol sorry guys.
Ok so let’s say I buy a 1st ed neo rev box right now for 10k, in roughly 6 months I can pay it off fully with personal/side income then that means I’m only accumulating $320 max in interest. Mainly asking because I’ve come to times where I was thinking about buying and then the item was gone and once I found another one months later the price had already jumped again (mainly booster boxes) so by using my LOC I can attain the box I’m currently after now.
Now that there’s more context let me know, I don’t have issues with finances but the collectable market can be quick to change so that’s why I’m considering this an option.
I guess the only relevant question is; do you think the 1st ed neo rev box will increase by more than $320 in 6 months, if yes - go for it! if not, dont 
So you can pay off a $10k loan in 6 months but you don’t have $10k in savings today?
No offense, it’s your money you can do what you want, but maybe you should reassess your priorities
More power to you. I agree that it can be used “effectively.” But spending money you don’t have is inherently dangerous. People lose their incomes for any number of reasons, whether it be recession, injury, illness, etc. If that happens, then what?
Well that’s life I guess. There’s a “what if” for every step you take in life. People put themselves in debt to college just for a chance at getting a career. Others try to start a business & in both things you have no control over can ruin it all for you.
Personally I’ve taken advantage of 0 interest credit cards, did wonders for me. But it’s not something I’d suggest unless you know exactly what you’re doing & you plan things out well. IMO this doesn’t seem like the best idea, OP is banking on the box increasing in value & even if does, will it increase enough to a point where it’s worth it to go through this? No one knows, but to me the risk outweighs the reward.
Personally I’ve never messed with credit and the only loan I’ve ever taken out was my mortgage. I can see the opportunity benefits and such but I try to live my life in the mindset of “what if”.
What if I lost my job tomorrow or became disabled? What if my collection or investments got lost, stolen, damaged, or simply just decreased in value…would I still be financially stable?
I know there have been many opportunities I missed because of this but that I am ok with. The grind and hustle on your road to making a large purchase is in my opinion a healthy way to grow your financial IQ. This is all just simply my opinion though.
If you don’t have anything set in mind that makes me advise further against. The one time I purchased something on credit was when I was in college only working part time and it was an excellent once-in-a-lifetime eBay deal.
I also want to re-emphasize your credit score, especially if you are in your 20s, which is the time to build credit for when you want to buy or rent a home, business or auto loan, other large purchases.
From Discover:
"Revolving utitilization is one indicator of how much you owe on your accounts. The amount you owe lenders is one of the most important factors that impacts your credit and makes up about 30% of your FICO® Score.Opens modal dilog
Your revolving utilization is determined by:
Your total balance owed on your revolving accounts
Your total credit limit"
You want your revolving utilization to be low % wise (eg if your credit limit is 10k, you want your statement to be $1k not $8) If it takes you 6 months to pay off the 10k, that’s several months that will hurt your credit score.
lmfao
I’m curious. What was the deal?