Investor Alert: Credit Cards and Investments – A Risky Combination 02/14/2018
The SEC’s Office of Investor Education and Advocacy is issuing this alert to inform investors about the risks in using credit cards to purchase an investment or to fund an investment account.
For some, credit cards can be a convenient way to purchase goods and services. However, investors should understand that most licensed and registered investment firms do not allow their customers to use credit cards to buy investments or to fund an investment account. We urge investors to work only with a licensed or registered investment professional or firm and not attempt to use a credit card to fund investments.
Investing using a credit card has several risks:
Some other things to consider include:
Investor Alert: Securities-Backed Lines of Credit
Call OIEA at 1-800-732-0330, ask a question using this online form, or email us at Help@SEC.gov (link sends e-mail).
Visit Investor.gov, the SEC’s website for individual investors.
Receive Investor Alerts and Bulletins from the Office of Investor Education and Advocacy (“OIEA”) by email or RSS feed. Follow OIEA on Twitter @SEC_Investor_Ed. Like OIEA on Facebook at facebook.com/secinvestoreducation.
The Office of Investor Education and Advocacy has provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.