Author Topic: Investments funded via credit cards  (Read 5451 times)

CrispySub

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Investments funded via credit cards
« on: July 21, 2017, 10:24:32 AM »
I am looking for any investment opportunity that can be funded via a credit card, preferably something similar to Loyal3 about 3 years ago or the US Mint about 8 years ago.

I have a credit card that has 0% interest and 0% cash advance for an indefinite period of time (technically, until Dec. 31, 2099) and that is not a mistake or misprint.  I would like to transfer that credit into an investment account so that I can potentially get the cashback rewards instead of just taking it all out via a cash advance.

Do any companies still allow credit card funding at less than 2% fees? Paypal and Square are >2%.


BrandNewPapa

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Re: Investments funded via credit cards
« Reply #1 on: July 21, 2017, 10:52:31 AM »
Can't help with your question, but how did you manage to get 0% until 2099?

ketchup

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Re: Investments funded via credit cards
« Reply #2 on: July 21, 2017, 11:07:08 AM »
I'm interested in how you managed that too.

Maybe look into standard manufactured spending methods (VGC->MO or similar).

TornWonder

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Re: Investments funded via credit cards
« Reply #3 on: July 21, 2017, 01:32:24 PM »
Could you at least tell us which company is giving out interest-free 80 year loans so we can short their stock?

I do think there are several banks that allow you to fund a new savings account with a credit card, but I don't remember which ones for sure, you'll have to scout around the interwebs for that.
« Last Edit: July 21, 2017, 01:33:58 PM by TornWonder »

ketchup

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Re: Investments funded via credit cards
« Reply #4 on: July 21, 2017, 01:35:02 PM »
Could you at least tell us which company is giving out interest-free 80 year loans so we can short their stock?

I do think there are several banks that allow you to fund a new savings account with a credit card, but I don't remember which ones for sure, you'll have to scout around the interwebs for that.
http://www.doctorofcredit.com/does-funding-a-bank-account-with-a-credit-card-count-as-a-purchase-or-cash-advance/

CrispySub

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Re: Investments funded via credit cards
« Reply #5 on: July 21, 2017, 09:41:13 PM »
Barclay had a credit card that offered 0%/0% with a waived annual fee.  They took back the waived annual fee after numerous people applied for the card and sent a letter stating if we cancel the card without paying the fee, then the remaining balance would remain at 0% until it is fully paid off, even with an inactive account.

Essentially, I have a 24k 0% interest loan at my disposal with 2% cash back.  I have under a month left to use it.


TomTX

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Re: Investments funded via credit cards
« Reply #6 on: July 22, 2017, 10:28:34 AM »
Barclay had a credit card that offered 0%/0% with a waived annual fee.  They took back the waived annual fee after numerous people applied for the card and sent a letter stating if we cancel the card without paying the fee, then the remaining balance would remain at 0% until it is fully paid off, even with an inactive account.

Essentially, I have a 24k 0% interest loan at my disposal with 2% cash back.  I have under a month left to use it.

So, the typical route to get this money into "cash" would be:

1) Buy pin-enabled VISA or MasterCard gift cards. They act like debit cards. Activation should cost ~1%. Simon malls are a preferred route - they have a daily limit of $10,000 (but due to activation fees, you would typically buy 19 x $500 GC) and low activation fees.

2) Buy money orders at WalMart or the Post Office. Do research on which flavors of GC will work at your preferred route. Often you can "drain" several GC to a single MO purchase. Should cost <0.2%

3) Deposit MO in your bank account. Note that doing high volumes may piss off your bank. Do your research.

4) START SMALL to get comfortable with the process.

the_grillman

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Re: Investments funded via credit cards
« Reply #7 on: July 22, 2017, 03:15:53 PM »
I'll throw out KickFurther with the giant caveat that you need to be very careful and do your research before making a decision to invest with them.

I'll provide my referral link but don't really expect you to use it. https://www.kickfurther.com/buyer-referral/k1s8f42j29
« Last Edit: July 22, 2017, 03:20:26 PM by the_grillman »

Monetary

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Re: Investments funded via credit cards
« Reply #8 on: July 23, 2017, 08:09:12 PM »
The closest thing I am aware of to Loyal3 in terms of purchasing stock with credit cards is Stockpile.

The fee is 3% + $0.99. Stock is purchased in a dollar amount, trades are made in batch once daily, and you'll end up with fractional shares. No trading platform.

https://help.stockpile.com/buying-and-selling-stock/how-much-does-it-cost

https://help.stockpile.com/buying-and-selling-stock/buying-stock-with-a-credit-or-debit-card

Some time ago when I was getting interested in manufactured spending, I looked into this. I made a test purchase of a $5 gift card using credit, gave it to myself, and I now have a Stockpile account worth $6.31. It appears that you can buy e-gift cards with up to $2000 face value, which would cost $2060.99 after fees. Also it appears that if you have an account, you can buy stock directly with a credit card, but this may be capped at $200 per purchase- I am not sure. Being able to buy stock directly with a credit card is a newer feature that I have not explored.

Definitely read about the company before you invest. I am not actively using this, because I have much less expensive MS options available (rent, visa gift cards, quarterly estimated tax payments), but I have it on my radar as an "emergency" source of manufactured spending, or in case my other options dry up.

anonymouscow

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Re: Investments funded via credit cards
« Reply #9 on: July 24, 2017, 04:14:54 PM »
Why not just do a balance transfer to another card?

CrispySub

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Re: Investments funded via credit cards
« Reply #10 on: July 24, 2017, 10:06:43 PM »
Why not just do a balance transfer to another card?

For my debts, I have a mortgage at 3.7% interest and a TSP loan at 1.75% paid to myself used as a DP for the mortgage.  I have no other CC debts, student loans, car loans, etc.

Right now, I am looking into getting BIPV Solar panels (and consequently a new roof) in order to apply for SRECs (~$450/MWh or ~$3k a year on a 6kW system), tax credits (30% of roof/solar cost since it is BIPV), and general electrical/environmental savings as an option for this 2% cash back 0% interest "loan".  This process is more than a bit frustrating, but if I can make it work, it would be a great return.  It is the best thing I could find or think of at this time besides just taking out a cash advance and putting it into any investment account.  I would rather not give away that "free" 2% yield.

I was also trying to find if it was possible to physically buy a royalty (song or yielding patent) with a CC somewhere and try to pay off the CC with the royalty payments, but I can't find a good royalty 'brokerage' that you can just buy things with a CC.  If you know of any of those, I am all ears.

anonymouscow

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Re: Investments funded via credit cards
« Reply #11 on: July 25, 2017, 08:56:53 AM »
Why not just do a balance transfer to another card?

For my debts, I have a mortgage at 3.7% interest and a TSP loan at 1.75% paid to myself used as a DP for the mortgage.  I have no other CC debts, student loans, car loans, etc.

Right now, I am looking into getting BIPV Solar panels (and consequently a new roof) in order to apply for SRECs (~$450/MWh or ~$3k a year on a 6kW system), tax credits (30% of roof/solar cost since it is BIPV), and general electrical/environmental savings as an option for this 2% cash back 0% interest "loan".  This process is more than a bit frustrating, but if I can make it work, it would be a great return.  It is the best thing I could find or think of at this time besides just taking out a cash advance and putting it into any investment account.  I would rather not give away that "free" 2% yield.

I was also trying to find if it was possible to physically buy a royalty (song or yielding patent) with a CC somewhere and try to pay off the CC with the royalty payments, but I can't find a good royalty 'brokerage' that you can just buy things with a CC.  If you know of any of those, I am all ears.

I don't know maybe I am missing something.

Can you get another card like Fidelity that gives you 2% cash back?

When you do a balance transfer you will will not get the 2% on your current card, but when you spend the money on the other card you should get the 2% there.

zombiehunter

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Re: Investments funded via credit cards
« Reply #12 on: July 25, 2017, 09:16:02 AM »
Why not just do a balance transfer to another card?

For my debts, I have a mortgage at 3.7% interest and a TSP loan at 1.75% paid to myself used as a DP for the mortgage.  I have no other CC debts, student loans, car loans, etc.

Right now, I am looking into getting BIPV Solar panels (and consequently a new roof) in order to apply for SRECs (~$450/MWh or ~$3k a year on a 6kW system), tax credits (30% of roof/solar cost since it is BIPV), and general electrical/environmental savings as an option for this 2% cash back 0% interest "loan".  This process is more than a bit frustrating, but if I can make it work, it would be a great return.  It is the best thing I could find or think of at this time besides just taking out a cash advance and putting it into any investment account.  I would rather not give away that "free" 2% yield.

I was also trying to find if it was possible to physically buy a royalty (song or yielding patent) with a CC somewhere and try to pay off the CC with the royalty payments, but I can't find a good royalty 'brokerage' that you can just buy things with a CC.  If you know of any of those, I am all ears.

This sounds like the more interesting option than traditional investing -- perhaps you could use the CC to purchase other energy efficiency upgrades like insulation, energy efficient appliances, or audit for your home?  Or further, what about an in-home battery and Chevy Volt?  MMM has some great articles on the subjects. 

As a side Note, I used KickFurther mentioned above to help meet some spending requirements for CCs.  It wasn't really worth it for an investment return.  Over the past ~2 years, I purchased about $3000 in various inventories, and received just $3110 after accounting for charge-offs on the or so offers that failed.  So call it just 3.5%, but likely not over a single year.  Which is fully taxable.  As such, I am no longer invested in the platform. 

If you want to get riskier, you could make a large deposit on FanDuel -- for which your CC may lock up and require verification.  Are you knowledgeable about fantasy football and do you like to gamble?  If you deposit a large chunk of cash, it must be wagered once -- in theory, on the lowest risk to reward type of game.  After it's been wagered, the funds have been 'washed' in a sense and are withdraw-able to PayPal or you bank (and fully taxable), and then can be invested in traditional securities. 

powskier

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Re: Investments funded via credit cards
« Reply #13 on: August 02, 2017, 08:34:55 PM »
There is no way anyone is loaning you money at 0% until 2099.

Unless you are related to the current occupant of the White House and it's a Russian credit card.

CrispySub

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Re: Investments funded via credit cards
« Reply #14 on: August 03, 2017, 09:26:43 PM »
There is no way anyone is loaning you money at 0% until 2099.

Unless you are related to the current occupant of the White House and it's a Russian credit card.

Attached is a privacy edited screenshot of the account settings. I am no more related to the White House than the typical Caucasian American with typical ancestry. The paper statements and other correspondence I have state the normal interest rate and cash advance rate is 0% until 2099 as well instead of just balance transfers.  So I can honestly think of it as a 24k loan at 0% interest where inflation is actually my friend.

For anyone curious for the arbitrage, I found some gold and palladium on Ebay that were selling for remarkably close to spot (unfortunately, no Ebates for bullion) that the 2% cashback more than made up for.  (Gold sold for 1273 while spot was 1268, Palladium sold for 899 with spot at 884).  And from there, it is just sell to kitco/provident, sell on craigslist for a little above spot, or hold and wait.  I am still trying to find a good solar solution.

ChpBstrd

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Re: Investments funded via credit cards
« Reply #15 on: August 04, 2017, 01:57:47 PM »
I was thinking about the eBay route as well. Find something you can buy on the card for X and resell for X on eBay.

Other "investments" you might be able to buy and flip with the card include antiques, art, wholesale inventories, stuff on ebay, and e-currencies. If your limit is high enough, you might see if you could hire a remodeler on the card and do a house flip. Another option: buy a car that is wrecked or needs mechanical work, pay for the work using the card, and sell the car for a net profit. Yet another option: guns can be bought on a card and privately resold for close to retail value.  My last and riskiest idea is ticket scalping.