How to use credit cards to invest (such as buying stocks)

Credit cards promote the concept of spending first and paying later, and generally enjoy a longer interest-free period. As the concept of advance consumption becomes more and more popular, more and more people are using credit cards. They apply for a credit card regardless of whether they have money or not.

Now, the stock market is very hot, and many investors and college students are very interested in using credit cards to cash out stocks. Many card users choose to use their credit card limit to buy stocks because it is easy and fast to buy stocks with their credit card limit. There are even many cases of overdraft on credit cards for stock trading. Can you trade stocks with a credit card? It is understood that credit cards can be used to speculate in stocks. However, cashing out credit cards to speculate in stocks is no different from borrowing money to speculate in stocks, which is very risky. Once the market goes bearish, the decline will bring greater risks. Therefore, investors should not use overdraft to speculate in stocks.

Don’t use your credit card limit to speculate in stocks. The most important thing is to avoid "card-to-card". "Card-to-card" means using the money from one credit card to pay off the balance of another credit card. Investors must keep in mind that the "card-to-pay card" status is very dangerous. If one of the cards fails to repay on time, all other credit cards will be affected, and it will also affect credit, and the cardholder will have to spend a lot of money. It takes time and energy to replenish the limits of these credit cards, and cardholders are advised to avoid excessive consumption.

Investment is risky. Credit card stock trading is not as good as imagined or legendary. Cardholders must keep a calm mind. In addition to high risks, using credit card limits to stock stocks also has a repayment period. Restrictions, don't covet the gifts, let alone dream of using your credit card limit to buy stocks to make money, and banks will not allow you to use your credit card limit to trade stocks.

Once it is found out, you will be asked to make up the money immediately. Generally, banks will not directly let you transfer the money. Even if you withdraw cash to trade stocks, the interest is very high and the interest is compounding. If the market fluctuates, you will really step into the 18th level of hell if you are not careful. Therefore, you must be cautious when investing, and remember that overdraft stock trading is The taboo of stock trading.

How about borrowing RMB 30,000 from a credit card to trade stocks?

Borrowing RMB 30,000 from a credit card to trade stocks will not only increase the risk of stock trading, but also increase the cost of stock trading significantly. Stock trading itself requires payment of stamp duty, transfer fees and brokerage commissions. If you use a credit card, interest will accrue, and the annual interest rate is at least 10 points.

Will you go to jail for stock trading with credit card?

1. Will you go to jail for stock trading with credit card?

1. Will you go to jail for stock trading with credit card? If you don't pay back the loan while trading in the stock market, you will generally not go to jail. The bank will send people to call for the loan, and it will take a long time to pay off the previous loan. If you are a bank, you are likely to apply to preserve your property, such as real estate, cars, deposits, stocks, etc. If the assets are liquidated and the loan principal and loan collection fees cannot be fully returned, the bank can apply to deduct basic living expenses from salary income.

2. Legal basis: Article 676 of the "People's Republic of China and Civil Code"

If the borrower fails to return the loan within the agreed time limit, the borrower shall repay the loan as agreed. Or pay overdue interest according to relevant national regulations.

Article 680

Lending at high interest rates is prohibited, and the interest rate for borrowing must not violate relevant state regulations.

If the loan contract does not stipulate the payment of interest, it will be deemed that there is no interest.

If the loan contract does not clearly stipulate the payment of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to local or party transaction methods, transaction habits, market interest rates and other factors; if a loan is made between natural persons, it shall be deemed to have no interest. Interest.

2. What are the consequences of non-payment of bank loans?

The consequences of non-payment of bank loans are as follows:

1. Overdue for more than 90 days, serious circumstances may be considered In order to maliciously overdue, the bank's collection may also cause life pressure to yourself and your family, affecting the normal life of individuals and families;

2. In terms of overdue charges, there will be some liquidated damages, penalty interest, etc. Expenditures need to be collected according to the contract. Different institutions have different loan products, and the liquidated damages or penalty interest charged are different;

3. Impact on personal credit records, bad credit records It will become a hindrance to future mortgage, car loans and other loans, as well as credit card applications.

Is it illegal to buy stocks with credit card money?

In fact, this is illegal and is suspected of credit card crime. There are violations of credit card management regulations. Although the specific conviction depends on the specific circumstances of the individual. But again, it is illegal to use credit cards to cash out stocks. Cashing out by credit card is not advisable.

Legal basis:

"People's Republic of China and Civil Code"

Article 148: One party uses fraudulent means to cause the other party to violate the For civil legal acts carried out with true intention, the defrauded party has the right to request the people or an arbitration institution to revoke it.

Article 149: If a third party commits a fraudulent act, causing one party to perform a civil legal act against his true intention, and the other party knows or should know about the fraudulent act, the party who was defrauded shall have the right to The right to request the people or the arbitration institution to revoke it.

Article 150: If one party or a third party uses coercion to cause the other party to perform a civil legal act against its true intention, the coerced party has the right to request the people or an arbitration institution to revoke it.

Can cash withdrawn from a credit card be used for stock trading

Strictly speaking, credit card money cannot be used for investment (such as stock trading, buying funds or financial products, etc.), it can only be used for consumption.

1. For example, purchasing funds cannot be paid directly with a credit card, only a savings card. However, the bank credit card center does not track where the money goes after withdrawing cash from the credit card, so you can use it for any investment or consumption (I tried it and it worked). It should be noted that there is no interest-free period for cash withdrawals and there are handling fees, which is not cost-effective.

2. Credit card cash-out means that the cardholder does not withdraw cash through normal legal procedures (ATM or counter), but uses other means to withdraw the funds within the credit limit of the card in cash, and at the same time Failure to pay bank withdrawal fees.

3. Regarding the credit card arbitrage behavior that has become more and more serious in recent years, the Shanghai headquarters of the Central Bank stated on July 26, 2010 that cashing out on credit cards is illegal, and the central bank is studying how to record the arbitrage behavior of cardholders in the personal credit system. , directly affecting their personal credit records.

4. From the day you get the credit card, the bank promises to give you a corresponding amount of advance payment. For example, if you apply for a credit card with a limit of 10,000, the bank will promise to make it at any time. I can lend you a quick loan of 10,000 yuan. Where is this 10,000 yuan? You can pay it back to the bank within the interest-free period of up to 56 days, and your interest will not be charged during this period.

5. This advance payment can only be used for consumption. Banks do not encourage you to change it into cash and take it out, because when you go to an ATM machine to withdraw cash, you can only withdraw 50% of the amount in cash, and at the same time These cash also need to charge you a handling fee of 1-3%. When you withdraw the money, the bank will start calculating interest for you. The national regulation is 0.5% per day.

6. The above is the situation where we directly take the credit card to the ATM machine to withdraw cash. From another perspective, if we do not withdraw cash but use the credit card to make consumption, compared with the above, there are several Advantages: 1. You can spend the full amount. For example, if your card has a limit of 10,000 yuan, you can spend 10,000 yuan; 2. There is no handling fee for consumption. If you are cashing out, it is usually 2 points. If you use online banking , there is no handling fee, which is cheaper than normal cash withdrawal; 3. There is no interest, you can repay the money to the bank without any interest during the interest-free period of up to 56 days.

7. Because credit card users have a maximum of 56 days of "interest-free consumption" period, once the cardholder cashes out, he can use bank loans without paying interest during this "interest-free period". Therefore, credit card cash-out allows cardholders to obtain cash while avoiding the bank's high cash withdrawal fees, which is equivalent to obtaining an interest-free loan, which is extremely tempting. To put it simply, cashing out on a credit card is the act of withdrawing cash within the credit card limit through other methods.

Can credit cards be used to buy stocks in the stock market? You should think twice before buying stocks

1. Credit cards are the most convenient "fund pool" around us. Some investors After the stock market was full, I thought of using a credit card to withdraw cash to obtain more principal. Credit cards cannot be used to speculate in stocks. The bank card bound to a third-party depository when buying stocks can only be a debit card, not a credit card, and credit cards cannot be bound.

2. Investors who want to trade stocks need to go to the sales department of a securities company to open an account, and bring their ID card and bank debit card with the same name. The bank card bound to a third-party depository when buying stocks can only be a debit card, not a credit card, and credit cards cannot be bound.

3. Whether it is withdrawing cash with a credit card, borrowing cash installment business to increase the stock market, or partial repayment and bill installment, it is a higher cost and riskier option. Investors are advised to Think carefully and don't end up with a bad credit record.

That’s it for the introduction to credit card stock trading.