Buying Land with a Credit Card: A Strategic Guide

Using a credit card to buy land might make sense if you want to own the land outright with no liens attached but don't have the cash up front. If your credit card has a very low fixed interest rate, you might be better off using your credit card to buy land than financing it through a traditional lender. You'll just need to be creative about the process to make it work.

Step 1

Identify the property you intend to purchase. Negotiate the purchase price with the seller and ask for money toward closing costs to lighten your overall cost. Try to get the best deal you can in order to minimize your credit card debt.

Step 2

Find out your available credit card balance and learn the estimated closing costs from the title company handling your real estate closing.

Step 3

Take a cash advance on your credit card up to the card limit or the amount needed for your land purchase. The cash advance may be deposited directly into your bank account, and you can then draw a certified check from this account.

Step 4

Figure out how much money you'll need from other sources if your credit card is not enough to cover the land and closing expenses. Bring your credit card cash advance and other money to your scheduled closing.

Step 5

Bring your money to the closing, in

Tip

Another way to use your credit card to buy land is to pay large bills with the credit card each month, saving the money you would have spent in a savings account. Depending on the price of your land, you could have enough saved for the land in a matter of months. Carefully review your credit card terms to ensure that you have a fixed interest rate for the life of your purchases.

Warning

Never miss a payment on the loan, as your credit card may hike your interest rates to an unmanageable level.