Should You use Your Credit Card for Gambling?
Online gambling has become one of the largest forms of entertainment available to those who are looking for a way to have some fun while not having to leave the comforts of their home. However, one question many players have is whether or not they should use their credit cards to fund their online gambling accounts. If you are considering such actions, we want to cover a couple of topics you should keep in mind before you do.
Higher Credit Card Charges
For most credit card companies, the fees charged for using your credit card for online gambling are the same as using your credit card for making cash withdrawals at an ATM, which are typically higher interest rates. Additionally, some credit card companies also charge additional fees, such as handling fees. Handling fees can be steep since they are based on a percentage of the amount of the transaction. In other words, the more you deposit into your gambling account, the higher your fee. These higher interest rates will continue to add up every month until the balance has been paid in full.
However, not all credit card companies view deposits into online gambling accounts as a “cash” transaction. Some companies may charge the higher interest rates but will not charge their card holders the cash advance fee for making gambling transactions. Before funding your account with your credit card, check with your card issuer to see what types of fees you might have to look forward to.
Gambling with “Borrowed Money”
Another factor you need to consider is that you are literally gambling with borrowed money. Your winnings, if you have any, will not be as much as you might think as you will have to repay the amount you used to fund your account back to the credit card company. This method can also lead you to a situation that is much more sever. Using your credit card to fund gambling accounts can lead to an out-of-control spiral of debt. This debt can, and usually does, continue to grow as you use your card more and more, typically paying back less each time.
As online gambling and online gambling sites continue to grow in popularity, rules and restrictions surrounding this industry look to be less strict and we can safely assume that the number of people that currently enjoy online gambling will continue to grow. Being smart while you play, and with your credit, can help to ensure you enjoy this popular pastime without putting yourself in financial jeopardy.