Anyone max out their Credit Cards on mining gear?

[davemanet]

Hey All,

Just wondering if anyone has maxed their cards on mining gear?

I'm near it.  I'm generating a pretty good profit though that's earning me more than my credit card interest rate.

I'm wondering how everyone else is approaching it.  Do you continue to borrow and pay the interest?  Or do you cut down on the CC's?

*A part of me wonders if it's a good idea to pay off all the cards to get a higher credit limit... anyone else wonder this too?

[Etherion]

I would be surprised if you are the only one. Like you said it's a simple case of return vs expenses

[cryptojanne]

Its a fun hobby! Easy to get addicted Gotta watch out for difficulty and price drops tho 

[ps_jb]

Hey All,

Just wondering if anyone has maxed their cards on mining gear?

I'm near it.  I'm generating a pretty good profit though that's earning me more than my credit card interest rate.

I'm wondering how everyone else is approaching it.  Do you continue to borrow and pay the interest?  Or do you cut down on the CC's?

Use credit card co-branded with airlines, so will get miles for free ticket

[dragonmike]

Pay off your credit card balance straight away, you fool(s).
Don't use credit cards to borrow money, the interest rate is way too high. You're throwing money away. Credit cards should be used as a normal mean of payment. Not to spend more than you have!

[Permonik]

Pay off your credit card balance straight away, you fool(s).
Don't use credit cards to borrow money, the interest rate is way too high. You're throwing money away. Credit cards should be used as a normal mean of payment. Not to spend more than you have!

Listen to him!
He is more clever than you think.

[leonix007]

Pay off your credit card balance straight away, you fool(s).
Don't use credit cards to borrow money, the interest rate is way too high. You're throwing money away. Credit cards should be used as a normal mean of payment. Not to spend more than you have!

Listen to him!
He is more clever than you think.

Oh Really, is 0.5% per month way too high to you?that's the offer for most of my cards, OP has already stated he is generating a pretty good profit from it, I agree with paying it straight if you have the chance to, however , using cards with returns is also a wise investment.

[GeePeeU]

I did it once on a low balance card.

As long as you and confident you can get everything up and running, and you have enough discipline to direct all profits to paying off the card, It's not as risky as people think.

But then again, Cryptos are unpredictable, so if you need the money for something else, use it for something else.

[sundownz]

A good "trick"... get an AMAZON store card and then get 12-months 0% financing on GPUs purchased on AMAZON =)

I bought a good chunk of mine that way.

For any interest bearing money I used I sell 1/2 of my mined coins per month to cover and save the other half for investment.

[RealSwissMiner]

I don’t get it - you mean you just buy your mining gear with a credit card? What credit card are we talking about? One where you pay the balance every month? Is it more of a loan thing?

[DarrenJC]

Hey All,

Just wondering if anyone has maxed their cards on mining gear?

I'm near it.  I'm generating a pretty good profit though that's earning me more than my credit card interest rate.

I'm wondering how everyone else is approaching it.  Do you continue to borrow and pay the interest?  Or do you cut down on the CC's?

*A part of me wonders if it's a good idea to pay off all the cards to get a higher credit limit... anyone else wonder this too?

You are living my dream

[P00P135]

Only use credit if you get no fees 0% apr for 6months+

[Chan8]

I always advise to never borrow funds or take out loans to run any business. But thats me, and i always tell my associates or family the same. Especially when it comes to mining or bitcoin. I find it just way to risky to be taking loans for crypto. But doesnt mean you wont make profits and be able to pay back. My point is its just too risky. But hope you dont put yourself in a situation.

[doctorfrickle]

Its a fun hobby! Easy to get addicted Gotta watch out for difficulty and price drops tho 

The thing is it isn't a hobby I started with a singular 1070 slowly worked my way up I have over 30 rigs now after using my earnings and invested into a right thing at the right time. Now me and my buddy who has about 20 rigs are about to rent out a small place really soon as he's expanding another 20 rigs. No longer a hobby buddy however I do not advice borrowing money for a business you can get messed up especially for cryptos.

[Gero3]

I wouldn't recommend maxing it out.
What I would recommend is getting a new card with 0 apr offer for 12 to 15 months.

Spend enough money u can pay off before your offer is up.

That way ur not paying anything out of pocket and still borrowing money and paying it off in time.

[deepcryptomine]

Well you are not the only one. I did the same thing but only because bank transfer would've taken a lot longer and I didn't have the patience. I paid my credit card the next day. Now I am selling coins to get my investment back. Hopefully I will be able to get my initial investment in a month.

[Raimy]

Oh wow. I just hope you have a good (low) interest rate in that credit card.

I would say I am on the side that says to start small and grow with your profits. It is bad enough with increasing difficulty, electricity costs, and miner and pool fees eating into your profits, but having to pay off a high interest rate loan on top of it makes it seems very risky. Just because the profit today is good doesn't mean the same thing will be true in 6 months.

[Raimy]

Well you are not the only one. I did the same thing but only because bank transfer would've taken a lot longer and I didn't have the patience. I paid my credit card the next day. Now I am selling coins to get my investment back. Hopefully I will be able to get my initial investment in a month.

Mind sharing what coin you are mining to get a 30 day ROI? Seems overly optimistic since the average coin seems to be closer to 90-100 days and that is only because of the recent run-up in price.

[antantti]

Buying mining hardware on credit is basically like going long on margin, some things to consider:

Not so much upside, black hole downside.

Hard to "close" your "position" when things start going south.

To sum it up, NO NO NO.

[Za1n]

I will add my 2 cents too thinking it is not such a great idea to use credit cards to finance your mining operation.

As long as the math works though I guess it is one way to get into mining, although I would think the interest rate would eat a large part of your profits.