How to make money while using your credit cards

Having a credit card is not all about spending. In fact, as a responsible credit card user, you can actually make money with credit cards! Obviously, there are some tricks to it, and we’re happy to share a couple. Before we do that, though, this is just a reminder that to maintain your high credit score, you’ll still need to be on your guard when you use plastic. Ready for those tips for how you can make money with credit cards? Here they are:

Join the Rewards Program- This is probably the easiest and the simplest trick, but most people don’t realize that they can earn money this way. Most credit card companies offer cash back, rewards, and/or a points program for every dollar you spend. Some programs will give back a percentage in cash; others offer a program where you earn points on the purchases you make. You can redeem the points for a number of things–free dinners, movie tickets, or even free travel anywhere in the country! All you do to earn the points or cash back is simply buy the goods and items you need with your credit card. Of course you must be extremely careful as you need to watch out for high interest rates and fees. To help in this aspect, apply for a credit card that has an ample grace period before interest rates apply. When you finally receive your credit card in the mail, simply buy whatever you need and pay the balance in full when your bill arrives. Yes, making money with credit cards is this easy. y.

Take Advantage of Free Loans- When you want to make money with credit cards, one of the tricks you must remember is to take advantage of cards offering a, -Zero Percent Introductory Interest Rate.- This is as good as money in the bank when your application is approved with a high credit limit. First, when applying for a credit card, choose a good company–one that gives 0% interest on both balance transfers and purchases for as long as possible–a year is preferred. When your card is approved, you can use it in either of the following ways:

1. You can use the zero percent offer to buy products, goods, and services all year long- Then deposit the money you would have used to pay the interest in a savings account or just invest in other things. This way you are freeing up your money – and using other people’s money at no expense to you. You can pay the minimum balance charged per month and continue doing this until you are charged interest. It is at this time that you can continue to pay the minimum or just pay the balance in full.

2. You can use the balance transfer switch procedure- Apply for a credit card with a zero interest rate and decline any balance transfers. Make sure it is one that offers checks. Once you receive the checks, you can simply withdraw the money from the credit card by writing a check and deposit this into your personal account. It should be an account paying a high interest rate so that you can get a boost to your cash. To make money with credit cards, you can apply for a new credit card with a different company when the 0% interest rate is about to expire. Transfer the old balance to the new credit card. Of course before doing this, you need to understand the fees and interest rate (hopefully it’s again zero or very low) you have to pay for your new card.

Improving Your Credit Score Rating

Your credit history is equally important as making money with your credit cards since this could determine whether or not you have a bright financial future. In order for your credit report to be clean, you should have your credit score checked on a regular basis. Here are some tips and advice to follow when you decide to work on improving your credit score rating.

1. Pay off any debt that you may have incurred while using your credit card. This can dampen your spirits but will definitely have a huge impact on your credit score rating.
2. Limit your credit balance–a balance of 50% or more will hurt your credit score.
3. Try not to cancel your credit card. Instead, pay off the balance every month. This will result in a good relationship with your credit card company.
4. One of the easiest things you can do is to pay off your bills on time. By doing this consistently, lenders see that you are responsible and, the bonus for you is that you will pay off your loan in a jiffy!
5. Have a good relationship with your creditors. It doesn’t matter how many credit cards you have as long as you pay off the balance on each of them. This shows that you are disciplined enough to pay back what you owe.

Joy Mali is an active finance blogger who is fond of sharing interesting finance management tips to encourage people to manage their personal finances. More specifically, she advocates that people should check credit reports and scores regularly.

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