Using Credit To Buy Coins?

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Originally posted by Jim Biggs

Buying on credit for ownership is folly. Using credit to purchase inventory with a known distribution channel and reasonable gross margin is free enterprise and what America was built on. Knowing the difference is what separates credit card debit from capitalism.
Jim

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Wonderfully spoken.

However, I'm one of those who buys virtually everything with a credit card. Heck, I haven't had $100 at once in my wallet in 10 years. That doesn't mean I allow the balance to sit there, though.

Using credit cards to buy coins isn't a good idea. The finance charges alone don't make it a viable option. Unless you are just rich and can afford to pay off the balance each month then I would forget this idea. Anyway, if a person is that well off what would they need with a credit card unless you are running a business. Just my opinion.

I have a few subscriptions with the Mint so a credit card is a must. Good thing is the totals aren't that great so I just pay it off when the bill comes around. For most of my on-line purchases I just use a debit card.

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Originally posted by Irishraider

Using credit cards to buy coins isn't a good idea. The finance charges alone don't make it a viable option. Unless you are just rich and can afford to pay off the balance each month then I would forget this idea. Anyway, if a person is that well off what would they need with a credit card unless you are running a business. Just my opinion.

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Buying coins with a credit card is no different than buying anything else with a credit card. If you can't pay it off immediately, you pay interest. Plain and simple. Unfortunately this day and age requires a credit card for a lot of things. Car rentals, hotel reservations, golf course reservations, any vacation for that matter. Plus, if you have no credit, good or bad, it is very hard to "get" credit. Try buying a house with only 5% down and no credit to speak of, good or bad. it stinks, but that's the way it is. I think the cards are a wonderful thing, but I wish there was an age limit. The companies make their money off of college students and such that can't possibly pay off the bills right away. Mom and dad end up taking care of it..... Just my Two Cents.

I buy many of my coins with a credit CARD. It helps protect me from fraud, and I get bonus miles for the purchase. However, I pay it off right away too. I personally wouldn't consider taking any line of credit to buy coins. Perhaps if one was a seasoned and successful dealer it would be a smart move. I think for the rank and file collector it is playing with fire.

I use a debit card. My dad had bought gold coins on his CC, and he pays it off at the end of the month as to not incur interest charges, so in a sense he is paying with cash.. DEbit cards are the way to go because it's the best of both worlds, but not everyone has them yet.

I see no point in buying gold on a CC that cannot be paid in full at the end of the month.