Gambling online using a credit card can become costly
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THE WALLETS OF PEOPLE WHO ARE OWED. ONLINE GAMBLING HAS BECOME A MULTI-BILLION DOLLAR BUSINESS IN NEARLY ALL GAMBLING SITES. DO ACCEPT CREDIT CARDS. IT’S A ROLL OF THE DICE, THOUGH. IF YOU’RE THINKING ABOUT USING A CREDIT CARD FOR ONLINE GAMBLING, YOUR CREDIT CARD ISSUER MAY HIT YOU WITH MORE LOSSES THAN YOU REALIZE. TAKE A LOOK AT THIS NOTICE DISCOVER CARD IS NOW SENDING OUT TO ITS CUSTOMERS. IT’S TELLING THEM THAT AS OF APRIL 16TH. ONLINE GAMBLING TRANSACTIONS WILL BE TREATED AS CASH ADVANCES AND THEY WILL NOT EARN ANY REWARDS POINTS. WHY IS THAT A PROBLEM? WELL, CASH ADVANCES COME WITH A FEE AND THEY HAVE A HIGHER INTEREST RATE THAT KICKS IN THE VERY MOMENT THAT YOU MAKE THAT TRANSACTION. SO GAMBLING ONLINE WITH A CREDIT CARD THAT CAN BECOME PRETTY COSTLY PRETTY QUICKLY. AND HERE’S SOMETHING ELSE TO KNOW. SOME CARDS DO NOT OFFER PAYMENT PLANS ON GAMBLING TRANSACTIONS. AMERICAN EXPRESS, FOR INSTANCE, SPECIFICALLY NOTES THAT GAMBLING TRANSACTIONS. ARE NOT ELIGIBLE FOR THEIR PAY OVER TIME. PLANS YOU HAVE TO PAY AT THE END OF THE MONTH, SO YOU’RE NOT JUST BETTING YOUR MONEY. WHEN YOU USE A CREDIT CARD FOR ONLINE GAMBLING, YOU’RE ALSO BETTING YOUR CREDIT SCORE, INTEREST RATES, LATE FEES, CASH ADVANCES. THEY WILL AFFECT YOUR SCORE. CH
Online gambling has become a multi-billion-dollar business, and nearly all gambling sites accept credit cards.However, it's a roll of the dice if you're thinking about using a credit card for online gambling.Your credit card issuer may hit you with more losses than you realize.Discover sent a notice to its cardholders telling them that as of April 16, online gambling transactions will be treated as cash advances. Also, customers will not earn any rewards points.Why cash advances are a problemCash advances come with a fee, and they have a higher interest rate that kicks in the moment you make the transaction.So, gambling online with a credit card can become pretty costly. And something else to know: Some cards do not offer payment plans on gambling transactions.American Express, for example, specifically notes that gambling transactions are not eligible for its Pay Over Time plans. You must pay immediately at the end of the month.Impact on credit scoreYou're not just betting your money when you use a credit card for online gambling; you're betting your credit score. Interest rates, late fees and cash advances will affect your score.Check with your credit card company before gambling all that away.
Online gambling has become a multi-billion-dollar business, and nearly all gambling sites accept credit cards.
However, it's a roll of the dice if you're thinking about using a credit card for online gambling.
Your credit card issuer may hit you with more losses than you realize.
Discover sent a notice to its cardholders telling them that as of April 16, online gambling transactions will be treated as cash advances. Also, customers will not earn any rewards points.
Why cash advances are a problem
Cash advances come with a fee, and they have a higher interest rate that kicks in the moment you make the transaction.
So, gambling online with a credit card can become pretty costly.
And something else to know: Some cards do not offer payment plans on gambling transactions.
American Express, for example, specifically notes that gambling transactions are not eligible for its Pay Over Time plans. You must pay immediately at the end of the month.
Impact on credit score
You're not just betting your money when you use a credit card for online gambling; you're betting your credit score.
Interest rates, late fees and cash advances will affect your score.
Check with your credit card company before gambling all that away.
