At a time when credit card companies are raising fees, charging for membership, and making life a little more expensive for everyone, hearing that there are ways to make money from your credit card company may sound like magic.There are two ways in which you can earn money from your credit card provider. These are very easy steps, and you will be able to enjoy the rewards in little time.
Using Reward Cards To Your Advantage
Cards that offer cash back on your purchases are the best form of free money. With a little research, you can enjoy the many benefits of a reward card.
- Search for a reward card that provides a minimum of 1% cash back on all your purchases. This may come in the form of points, so you will need to do a little math to see if it averages out to 1%. Verify the interest rate and apply for the card.
- Look for a specialty reward card that will give you a higher percentage of cash back for gasoline purchases. Verify the interest and apply for the card.
- Once you receive the card(s) begin to make all of your purchases on the cards. Everything. You will be stashing your money away each pay to cover these expenses at the end of the month.
- If at all possible, use your credit card to pay utility bills, this is a great way to build up cash rewards.
- At the end of the billing cycle, pay off your cards in full. This is the most important step. You must save the money to pay off the bills in full. This way you are not paying interest, but you are gaining the rewards.
- Cash in your rewards.
By following this method you can accumulate a lot of money over the year in rewards. This will also reduce the amount of checks you write, and the amount of bills you need to pay at the end of the month.
Taking Advantage As “Same As Cash” Deals
Many stores are now offering “same as cash” deals in their stores as a way to increase business in the tough economy. These promotions are through store-issued credit card accounts.
Once you have made the purchase, verify the payoff date to receive your merchandise interest free. Some companies only offer 90 days, while others may offer 12 months. Once you know what that date is, take advantage of the offer and make sure that you pay off the purchase in that allotted time frame. The money that you save from making the purchase interest free will depend on the size of the purchase.
As an additional bonus, instead of making a large payment each month on the item, make the minimum payment until the payoff date arrives. At that time remove the money from your interest bearing savings account to pay off the debt. This will allow you to make interest off the money that you are going to use to pay off a purchase that is interest free.
Earning money from your credit card company is actually not difficult, but it does require that you’re diligent about the details. In tight times like these, such care is a necessary part of making ends meet.
Author Scott Parker is a financial consultant and content contributor to various websites, including Money Choices a comparison site with credit card review and great side-by-side rates and fees for many popular card companies.