The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: SmileAllDay on March 26, 2019, 08:44:23 AM

Title: Are there any ways to invest in Betterment using a credit card?
Post by: SmileAllDay on March 26, 2019, 08:44:23 AM
I know it says you can't on the site itself, but there's a not of Mustachians here dammit! I'm curious if there's a way around it :)
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: JAYSLOL on March 26, 2019, 09:09:32 AM
I doubt you would be able to, I'm not sure what the law is in the US, but where I am I'm pretty sure you can't use a credit card to invest.  Even if they let you, your card will almost undoubtedly charge you extra fees and cash-advance interest
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: flipboard on March 26, 2019, 12:52:53 PM
I know it says you can't on the site itself, but there's a not of Mustachians here dammit! I'm curious if there's a way around it :)
Why...?

If you want credit: get a margin account, that's much cheaper.

If you want points: you're basically asking them to pay you points for investing?
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: bacchi on March 26, 2019, 12:55:00 PM
This is a very bad idea.
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: MustacheAndaHalf on March 27, 2019, 08:31:56 AM
An emergency fund comes before investing.  One of the main purposes of an emergency fund is to avoid paying credit card interest rates.

If your investments gain 7% a year, and you're paying -20% in credit card payments... then you've found a way of losing -13% / year.  But I wouldn't call that activity investing.
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: Cries on March 28, 2019, 06:54:49 PM
Yes, but what if you get 18months of 0 APR.  Thats free margin.  And equities usually go up.  10/10 would do.

...maybe not today, but it might be very useful one day. 

I have an unfunded unsecured line of credit from WFC for this reason.  Would be nice if it had no interest expense attached to it.  Let me know if you find a way!
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: Hargrove on March 30, 2019, 04:42:07 PM
There's one way.

Take your credit card offering a balance transfer check at 0% interest for 12-18 months, with a 2-3% fee, and deposit that check into your checking account. Then invest it.

That's basically it.

Oh, and you generally shouldn't do that.
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: SmileAllDay on April 01, 2019, 04:39:22 PM
Yes, yes... I know it's an unconventional bordering on a bad idea. Maybe just a straight-up bad idea.

My wife wanted to put pressure on herself to invest more, and since we never pay a cent of interest on our CC's she was spitballing this idea.

Anyways... Thanks for the replies, everyone!
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: philli14 on April 03, 2019, 04:16:32 PM
Would love this.. hitting minimum spend with credit card churning would be way easier! Manufactured spending at its finest..
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: doggyfizzle on April 03, 2019, 04:45:57 PM
Go buy $500 visa gift cards from your local grocery store, head to Wal Mart (or another grocery store that sells money orders), and buy a money order for $500 less the MO fee (between .48 cents and $1 usually).  Do this up to your CC limit, and invest.  Iíve done this with CDs in the past on 15 and 18 month 0% APR offers, but never floated the money in the market.
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: philli14 on April 03, 2019, 07:18:30 PM
Go buy $500 visa gift cards from your local grocery store, head to Wal Mart (or another grocery store that sells money orders), and buy a money order for $500 less the MO fee (between .48 cents and $1 usually).  Do this up to your CC limit, and invest.  Iíve done this with CDs in the past on 15 and 18 month 0% APR offers, but never floated the money in the market.

Thanks but unfortunately MO vendors in my area don't allow GC to be used as debit to purchase MO, must be a lot of churning activity in my area.
Title: Re: Are there any ways to invest in Betterment using a credit card?
Post by: Car Jack on April 04, 2019, 07:22:10 AM
An emergency fund comes before investing.  One of the main purposes of an emergency fund is to avoid paying credit card interest rates.

If your investments gain 7% a year, and you're paying -20% in credit card payments... then you've found a way of losing -13% / year.  But I wouldn't call that activity investing.

For a beginner, this is good advice.  For me, it doesn't apply.  I have $400k in available e fund (most in US Savings bonds) and pay off all of my credit cards in full automatically, every month.

I'd love to find an investment vehicle who would take a credit card and not have it be considered a cash advance.  I already manufacture spend, so I'm not scared of doing sketchy things.....and I know which Wal Marts near me will sell me a MO using Visa Gift Cards.