The Securities and Exchange Commission (SEC) recently issued an investor alert listing some of the risks associated with using credit cards to buy investments or to fund an investment account.
Here are five things to consider before using a credit card to invest:
1. Pressure to use a credit card to invest might be a sign of a scam
2. Don’t forget about credit card interest rates and fee
3. You add more risk to your investment
4. Check your statements for unauthorized charges
5. Look out for delays in withdrawal payments from your investment account
Read more about risks associated with using credit cards to fund investments, here.
Source: Financial Industry Regulatory Authority