If you also buy gold with credit card, then keep these things in mind; Otherwise there will be heavy losses

Buy credit card gold like this

Gold is considered a safe investment. Especially in India, people are also very good to buy gold. To buy it, first cash runs only in the bullion market. But, due to changes with time, now you can also buy gold through credit cards. It is easy to buy gold from a credit card, but it has its own advantages and disadvantages. In this news, we are going to tell you about the same profit and loss. Let us know what you should keep in mind while swiping the card.

In Mint's report, according to FPA Edutech director CA Praneet Jain, the credit card is suitable for disciplined people, who pay on time. If you are unable to do this, then be ready to bear the burden of 36-42% annual interest, late payment fees, GST and other charges. Collecting reward points is an attractive aspect of credit card, but not paying time can cause huge regrets. Therefore, avoid investing with credit cards. It is a matter of advantage and loss of buying gold from credit card, then they also understand it.

Benefits of buying gold from credit card

There are many attractive benefits like reward points and cashback when purchasing gold from credit card. Famous brands such as Zoya, Tanishq, and Reliance Jewels offer a cashback or reward points up to 5% on the purchase of gold. For example, Titan SBI Credit Card provides cashback up to 3% of up to 3% on the purchase of gold from Tanishq and up to 5% on other selected jewelery brands. In addition, cards such as Standard Chartered Ultimate Credit Card and HDFC Regilia Gold Credit Card also offer reward points on gold purchases, which can be used for future discounts or other benefits.

Disadvantages of buying gold from credit card

The biggest disadvantage of buying gold from credit card is processing fees, which is also called swipe fees. Each transaction may charge 3.5% or more. Gold prices are already quite high, and this extra fees may increase the financial burden on buyers. If you buy gold from international gold sellers, then foreign transaction fees may also have to be paid. Apart from this, before buying gold from a credit card, it is necessary to take complete information about the latest offers, conditions, and rules of your card provider so that the danger can be avoided.

Ban on gold purchase with credit card

Some restrictions are applicable on the use of credit cards on the purchase of gold. Since 2013, financial institutions and banks have been prevented from providing EMI facility for the purchase of gold. This decision was taken to preserve the Gold Reserve of the country. Under this, there is no permission to pay credit cards for the purchase of gold coins in bank branches. These rules are mainly applied to gold coins, but they do not have much impact on the purchase of jewelery. Nevertheless, some banks have removed the EMI option for jewelery purchase. Therefore, before buying gold from a credit card, it is necessary to get information about the new policy, rules, and updates of the bank.