Can You Buy Stocks With a Credit Card?
There are a few ways that you can use a credit card to buy stocks. However, it can be difficult and may not be a good idea even if you're up for jumping through a few hoops. The additional fees you'll pay could start you out in the red. And, if you're being pressured to use a credit card, that's a warning sign that it's a scam.
How to Buy Stocks With a Credit Card
Most brokerage firms won't let you directly fund your account with a credit card to buy and sell stocks. Instead, you'll have to fund your account in other ways, like a bank transfer, check or wire transfer. There are some creative ways to indirectly use a credit card to buy stock, but the downsides can be tough to justify.
One way you can use a credit card to buy stocks is to purchase a gift card for Stockpile, an online brokerage that lets you buy fractional shares. Gift cards are sold in amounts ranging from $1 to $2,000 and can be redeemed for stocks just like cash. However, you'll pay a fee of $0.99 to $2.99, plus an additional 3% debit or credit card fee for each gift card.
Another option is to use a credit card that lets you transfer funds into your checking account. You can then transfer the money to a brokerage account where you can invest it. However, the credit card issuer may charge a balance transfer fee (often 3% or 5%), and the transferred balance will immediately start accruing interest unless the card has an intro 0% annual percentage rate (APR) offer on balance transfers.
You could also get a cash advance with your credit card—but that's likely an even worse option. Cash advance fees are also around 3% to 5% and cash advance balances start to accrue interest immediately. Generally, the cash advance APR is also higher than the card's standard rates for purchases and balance transfers.
How Does Buying Stocks With a Credit Card Affect Your Credit?
Using a credit card could potentially affect your credit scores in several ways, regardless of what you purchase or why you initiate a balance transfer or cash advance.
If you apply for a new credit card, the resulting hard inquiry may hurt your credit scores a little. The new account will also lower the average age of all your credit accounts, which could cause your scores to dip.
Whether you use a new or existing card, your credit card's balance can have a major impact on your scores. Your credit card utilization ratio is a comparison of your cards' credit limits and balances as they appear in your credit reports. A higher utilization is worse for your scores.
Therefore, if you have a high credit card balance due to a big stock purchase, your credit scores could drop as a result. However, your score could also quickly recover if and when you pay down the balance.
Is It a Good Idea to Buy Stocks With a Credit Card?
Using a credit card to buy stock generally isn't a good idea. Investing in stock requires taking on the risk of losing money. By buying stock with a credit card, you could wind up with a high-interest credit card balance and lose your investment.
Additionally, using a credit card can be a bad idea because:
- You may pay extra fees. You may have to pay fees to the brokerage, an intermediary or your credit card issuer to use your credit card.
- You might not earn rewards. If your credit card offers rewards, you generally won't get them for balance transfers. You also might not earn rewards when purchasing gift cards or for cash advances.
- You start with a loss. The goal of investing is to make money, but using a credit card can result in an immediate loss from the fees. As a result, you'll have to make money on the investment just to break even.
- There's added pressure to make a quick return. If you're using a credit card with a promotional APR offer, you'll feel added pressure to make money before the promotional period ends and a higher interest rate kicks in.
- It could be a scam. The U.S. Securities and Exchange Commission has published several warnings about fraudsters who pressure people into making "investments" with a credit card. They may steal the money along with your card account information.
In short, credit cards can offer rewards and purchase protections that make them a better option than debit cards in many cases. But buying stock isn't one of them.
Alternatives to Buying Stocks With a Credit Card
As an alternative, consider some other ways you can invest in stocks.
You'll need a brokerage account first. A tax-advantaged account, such as an employer's 401(k) plan or an individual retirement account (IRA), is often a good way to start. If you don't have access or want to use those, however, you can also open a regular brokerage account.
When you don't have a lot of money to invest, you may want to look for a brokerage that lets you buy fractional shares. Rather than having to save up and buy an entire share of a company's stock, you can specify the exact amount of money you want to invest and buy a fraction of a share.
If you want to borrow money to invest, the best option may be a margin account. These let you borrow money at a much lower rate than credit cards directly from the brokerage. However, there are many rules and regulations you'll want to learn about first, and it might not be a good idea for a new investor.
Additionally, some brokerages offer cash back credit cards. You can use these rewards cards to deposit the cash back directly into your investment account.
Best rewards cards of 2026
Compare cards from our partners that earn points, cash back or miles on everyday spending.
Offers from our partners
Citi Double Cash® Card
Intro APR:0% for 18 months on Balance Transfers
Ongoing APR:17.49% - 27.49% (Variable)
Rewards:2% (cash back)
Annual Fee:$0
Blue Cash Everyday® Card from American Express
Intro bonus:You may be eligible for as high as $200 cash back after spending $2,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 15 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 3% (cash back)
Annual Fee:$0
Discover it® Chrome
Intro bonus:INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
Intro APR:0% intro APR for 6 Months on Purchases and 0% intro APR for 18 Months on Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1% - 2% (cash back)
Annual Fee:$0
The opensky® Secured Visa® Credit Card
Ongoing APR:23.89% Variable
Rewards:10% (cash back)
Annual Fee:$35
Credit One Bank American Express® Card for Rebuilding Credit
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$75 First year. $99 thereafter, billed monthly at $8.25
Blue Cash Preferred® Card from American Express
Intro bonus:You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 12 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 6% (cash back)
Annual Fee:$0 intro annual fee for the first year, then $95.
American Airlines AAdvantage® MileUp® Card
Intro APR:0% for 15 months on Balance Transfers
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$0
Citi Strata Premier® Card
Intro bonus:Earn 60,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $600 in gift cards or travel rewards at thankyou.com.
Ongoing APR:19.49% - 27.49% (Variable)
Rewards:1x - 10x (Points per dollar)
Annual Fee:$95
Costco Anywhere Visa® Card by Citi
Ongoing APR:18.74% - 26.74% (Variable)
Rewards:1% - 5% (cash back)
Annual Fee:$0
American Express® Gold Card
Intro bonus:You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Ongoing APR:See Pay Over Time APR
Rewards:1x - 4x (Points per dollar)
Annual Fee:$325
First Latitude Secured Mastercard® Cash Back Rewards
Ongoing APR:27.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$0
Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$99, waived for first 12 months
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$75*
Citi® / AAdvantage® Globe™ Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:1x - 6x (Miles per dollar)
Annual Fee:$350
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:Introductory fee of $75 for the first year. After that, $99 annually.*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$39*
Credit One Bank® Platinum X5 Visa® Metal Card
Ongoing APR:29.74% Variable
Rewards:1% - 5% (cash back)
Annual Fee:$95
First Progress Prestige Secured Mastercard® Cash Back Rewards
Ongoing APR:13.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$49
First Progress Select Secured Mastercard® Cash Back Rewards
Ongoing APR:17.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$39
Credit One Bank® Premier American Express® Credit Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$39
Marriott Bonvoy Brilliant® American Express® Card
Intro bonus:Earn 200,000 Marriott Bonvoy® bonus points after you use your new Card to make $6,000 in purchases within the first 6 months of Card Membership. Offer Ends 5/13/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:2x - 6x (Points per dollar)
Annual Fee:$650
Discover it® Miles
Intro bonus:UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match. You could turn 35,000 Miles into 70,000 Miles.
Intro APR:0% intro APR for 15 months on Purchases and Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1.5x (Miles per dollar)
Annual Fee:$0
Delta SkyMiles® Gold American Express Card
Intro bonus:Earn 70,000 Bonus Miles after you spend $3,000 in purchases with your new Card, and an additional 20,000 bonus miles after you make an additional $2,000 in purchases on the Card, both within your first 6 months. Ends 04/01/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0 introductory annual fee for the first year, then $150.
Credit One Bank® Premier American Express® Unlimited Rewards Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$0
Hilton Honors American Express Surpass® Card
Intro bonus:Earn 130,000 Bonus Points plus a Free Night Reward after you spend $3,000 in purchases on the Card in the first 6 months of Card Membership. Offer Ends 4/15/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:3x - 12x (Points per dollar)
Annual Fee:$150
Delta SkyMiles® Blue American Express Card
Intro bonus:Earn 10,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 6 months.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0
One Key™ Card
Intro bonus:Limited Time Offer: Earn $300 in OneKeyCash™ after you spend $1,000 on purchases in the first 3 months. OneKeyCash is not redeemable for cash and can only be used on Expedia®, Hotels.com® and Vrbo®. To learn more, please refer to the One Key Terms and Conditions at www.expedia.com/one-key-terms.
Ongoing APR:18.49%, 23.49%, or 28.49% Variable APR
Rewards:1.5x - 3x (Points per dollar)
Annual Fee:$0
One Key+™ Card
Intro bonus:Earn $350 in OneKeyCash™ after you spend $3,000 on purchases in the first 3 months. OneKeyCash is not redeemable for cash and can only be used on Expedia®, Hotels.com® and Vrbo®. To learn more, please refer to the One Key Terms and Conditions at www.expedia.com/one-key-terms.
Ongoing APR:18.49%, 23.49%, or 28.49% Variable APR
Rewards:2x - 3x (Points per dollar)
Annual Fee:$99
Avant® Cashback Rewards Mastercard® - With A Higher Credit Limit
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$125*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$0*
See all our best rewards credit cards for 2026.
Ultimately, though, the need to borrow funds to invest might mean that you're not financially prepared to start investing. If money is tight, it might be better to focus on reducing your expenses and setting aside cash funds you can use to make investments. Even if you think you might have found a surefire investment strategy, be very cautious of making rash decisions when it comes to borrowing money for investments.
Consider Your Big Financial Picture
Investing is an important part of many people's financial plans. But before taking a large risk, such as borrowing money to buy stock, make sure you have a solid foundation. For many, that means an established emergency fund, no high-interest debt, a good credit score and investments set aside for retirement.
Don’t apply blindly
Apply for credit cards confidently with personalized offers based on your credit profile. Get started with your FICO® Score for free.
See your offers
About the author
Louis DeNicola
Louis DeNicola is freelance personal finance and credit writer who works with Fortune 500 financial services firms, FinTech startups, and non-profits to teach people about money and credit. His clients include BlueVine, Discover, LendingTree, Money Management International, U.S News and Wirecutter.
Read more from Louis