Can you buy gold with credit card? Keep these things in mind before paying

Buying Gold with Credit Card: On Monday 30 June 2025, the price of 24 carat gold is Rs 97,583 per 10 grams. While the price of 22 carat gold is Rs 89,463. In the last few years, investment on gold has increased rapidly amidst gear-political stress and market instability. Anyway, buying gold has been liked by Indians long back. People use credit cards many times to buy gold. If it has some benefits of its own, then there are some disadvantages, so it is important to take care of some things while swiping the card during the payment.

According to The Mint’s report, CA Praneet Jain, director of FPA Edutech, says, “Credit card is for those who are very disciplined and pay payment on time. If you cannot do this, then be ready for late payment fees, GST and other charges with an annual interest of 36-42 percent. Collecting reward points is a good thing related to the use of credit cards, but not paying on time can also cause 24 carat regrets, so avoid investing from using credit cards.

Benefits of buying gold from credit card

Credit cards provide rewards points or cashbacks on gold purchasing. Brand credit cards such as Zoya, Tanishq and Reliance Jewels give cashback and rewards points up to 5 percent on the purchase of gold. The Titan SBI Credit Card offers a value of up to 3 percent on the purchase of gold from Tanishq and up to 5 percent on other selected jewelery brands. Standard Chartered Ultimate Credit Card and HDFC Regilia Gold Credit Card also offer reward points on gold purchases.

Disadvantages of buying gold from credit card

The biggest loss of buying gold from a credit card is the processing fee on it. It is also known as swipe fees. You can take 3.5 percent or more processing fees on every transaction.

Already gold priceThe sky is touching, if he has to pay heavy processing fees from above, then it can increase further pressure on the customers. Foreign transactions fees have to be paid on the purchase of gold from international gold sellers. Apart from this, before buying gold from a credit card, take complete information about the new offers, terms of the company you have taken.

Ban on purchase of gold from credit card

There are also many restrictions on the purchase of gold from the credit card. Since 2013, financial institutions and banks have been instructed not to purchase gold in EMIs. This decision has been taken to preserve the country’s gold reserve. They have also been prevented from giving permission to pay for gold coins in the bank branch.

Gold coins have been targeted especially through these regulations. It has no significant impact on the purchase of jewelery. However, some banks have also withdrawn the EMI option even on the purchase of jewelery, so before purchasing gold from the credit card, the recent policies of banks should be taken about the recent policy, regulations and updates.

However, credit card payments are more secure than cash. This provides protection from fraud and theft on transactions. This makes it easier to track expenses, so if you use a credit card with understanding, then it has many benefits. This can also make it easier to increase credit scores and get loans.

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