Is it possible to invest in stocks using a credit card?

Quick Summary:

For instance, if an investor buys stocks worth Rs 100 on credit and their value drops to Rs 60, they not only incur a loss on the investment but also face the obligation to repay the original amount plus any accrued interest.

Impact on credit score: Failing to manage credit card payments responsibly can negatively affect an individual's credit score, making future borrowing more difficult and expensive.

High-interest rates: Credit card interest rates in India can range from 13 per cent to 48 per cent, which can quickly erode any gains made from investments.

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Article Details

Category: BusinessFinance

Markets: India

Topics: High Interest Rates Debt Loan against credit card Using credit cards for stocks Credit Card Risks Investing Stock Market India Loan Credit card Investing Tips Financial Literacy Stock market

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-04 @ 17:33:06 (2 weeks ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 428 words

Reading Time: 3 minutes read

Sentences: 17 lines

Sentence Length: 26 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Standard

News ID: 23395327

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About Business Standard

Main Topics: BusinessFinance

Official Website: business-standard.com

Update Frequency: 283 posts per day

Year Established: 1975

Headquarters: India

News Last Updated: 2 hours ago

Coverage Areas: India

Ownership: Independent Company

Publication Timezone: GMT +5:00

Content Availability: Worldwide

News Language: English

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Website Security: Secure (HTTPS)

Publisher ID: #49

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