Can You Buy Stock With A Credit Card?

By Bruce Boswell •  Updated: 12/14/21 •  6 min read
Filed under: Credit Cards

If you find yourself in a position where you are wanting to start investing in stocks, the first thing you want to do is research what stock is best for your current financial situation, that can be how much you have to invest for a certain percentage of stocks.

It’s definitely that the money you use to buy stock is in fact your own money instead of money that is lent to you by your creditor. The reason for that being is that it could leave you in a sticky financial situation if that stock doesn’t turn the profit that you first expect.

Can You Buy Stock With A Credit Cardz

Stocks are always a risk and there’s no exact science behind what stocks will do good and when they will do good ethier, the general rule is to buy low and sell high, but that is easier said than done, the stock market can affected by all different types of things, for example the general health of the economy at the time of investing. 

That being said, it’s not totally impossible to buy stocks with a credit card, just not recommended because the downsides may outweigh the upsides. That being said if you can do it with your credit card if you personally determine that it’s worth it and that you are with a credit card provider that allows you to do so.

What You Need To Know

Buy stock with a card issued by your creditor you should be aware of the serious financial risk that you are taking as to not land yourself in hot water. These risks could include various different fees that could take a chunk out of your overall profit margin.

You should be aware of the fees that come with investing in, with a credit card you’re essentially on a rolling contract with your bank, if you miss a payment you may find that you are incurring charges that you may not have originally been aware of.

With purchasing stocks this way you may end up having to pay an advance fee so you need to make sure that your credit card is being paid off every month on time. 

Of course there are evident risks when purchasing stocks using a credit card. The stock market is like the ocean, it is uncontrollable. It can go up and down in a matter of seconds so when making your investments it’s crucial that you have up to date knowledge on what you’re getting yourself into.

If the stock you have purchased takes a spike down then the rewards that you would receive through your credit card provider can be wiped out before you know it.

As well as being generally a risky business to get into purchasing stock with a credit card may raise a concern from the issuer. Your credit score for example may take a huge hit if an investment you make doesn’t work out, which may lead you to struggling to pay your credit card fees off for the month which means you will be charged interest and could end up losing out on more money than you initially invested in the first place.

Ways You Could Minimize Risk?

It’s important to think about the risk before you think about the reward to determine if its worth it at all to invest.

One way that you could find presents less risk is to fund your brokerage account with cash back incentive scheme, by that i mean some card providers offer rewards from spending, for example the Schwab investor card from Amex is a good place to get started, once you have spent $1000 in your first three months using this card you presented a $100 credit.

Although that’s not a huge bonus you could use it to set up a brokerage account. After that you can ern 1.5% when you spend on anything. These funds are directly deposited into your account and maybe a generally safer way to invest until you’ve built your portfolio up to a more comfortable position.

Like mentioned earlier this doesn’t totally rid you of any risk because stocks are risky anyway, but it does allow you to not incur large penalty charges or any unwanted fees that you may suffer just buying stocks with a credit card.


It isn’t impossible to buy stocks with a credit card however you may find that the downsides of it are much worse than any possible upsides of doing so. It’s very important that you learn exactly what it is you’re doing when investing with any type of money.

But with the added hints of credit card fees and maybe missing a payment if a stock hasn’t turned over the profit that you initially thought it would you may find that your best bet is to give it a miss on investing in stocks with essentially the banks money.

You could end up missing out on your rewards as a whole for using the card and be hit with a figure that you just can’t pay off, when that happens it’s left to the banks to come knocking for that money they loaned you, without thorough research into what it is that you’re spending you really can end up in hot water.

It’s definitely worth looking into what banks can offer you in terms of cash rewards through earning points on simply spending with their card and using the reward money to fund your investment hobby that if you’re successful with you can make more of a full time one at that, but to simply just use the credit card to purchase stocks isn’t a good idea unless you already have the funds to pay off any issues you may run into if the stock is failing.

It is definitely worth your time researching different types of investment schemes that your bank may offer, you may find a more suitable way to invest your money through schemes offered. 

Now check out if you can buy a gun with a credit card here. Or even a house!

Bruce BoswellBruce Boswell

Bruce Boswell

Bruce Boswell enjoys researching and writing about all things related to investing and saving money. Whenever he has a chance, Bruce loves travelling all around the world with his wife and trying new foods.