Using a credit card as a deposit


This obviously is not the best method, but is it possible to use a credit card to make a deposit on a proprty (or cash advance check)?

When you say “deposit” are you talking about earnest money?

If so and your wholesaling the deal, then sure, use a cash advance check,but if your trying to actually buy the property I would worry about getting financing,they will want to know where the EM came from, and won’t like seeing you borrowed the EM

Like the late Robert Bruss used to say, all you need is one dollar and your good name, and often just a dollar will do. Any consideration, relevant to local jurisdictional requirements, makes the contract legal and binding.

Personally, I think it looks better, if you’re going to do the CC advance thing, to write yourself a check, put it in your bank account and write your earnest money check from that. Even then, that check sits uncashed until a contract is let and escrow is opened and funding begins. I’d look for a promotion that lets you do a ‘balance transfer’ check to your checking account for zero percent APR for a period of time and a low fee. A couple of my VISA accounts have those periodically. Cash advance fees and rates can be high on those cash advance checks, should one actually be cashed.

Part of a successful transaction is appearances, and people who work in the financial and real estate business have seen a lot of creative methods. I guess it comes down to what appearance you wish to present as a buyer/facilitator.

Good luck.


Yes, I am looking to use credit/cash advance check to be used as a down payment for a rehab to fix and flip or refinance in six months. I have great credit but do not have the cash to get started. I am hoping I will find an investor or bank that will help me to finance the rest to get into the game.

Could you throw some numbers out?

For example, are you looking to buy a Homepath REO for 100K, put down 3K + closing and get Homepath financing for the rehab?

Remember, any house you buy with financing will have to qualify for the financing itself, in addition to you qualifying. That CC advance check, whether written to the seller or deposited in your checking account, will appear on your tri-merge when you’re in the loan application process. You know your numbers, e.g. FICO, debt-to-income, etc, etc. How will that chunk hanging out there look?

As an example, I’ve got about 160K revolving credit (that’s what you would write that check against) out as available, and am utilizing about 32K on the float currently, for a 20% utilization. If I was looking at my credit report (I’ve looked at a lot of them when making loans), I’d stop and ponder both the amount out there and the huge amount available. That’s asking for trouble. Banks don’t like trouble these days. They like safe. How do you look to the bank?

I’m mentioning these things because, when you make these decisions, you need a plan, and a planB and a planC. These deals just don’t happen. They’re the result of education, planning and hard work.