(1 votes, average: 5 out of 5)

Using Credit Cards to Make Money

Posted by J.S.

May 27, 2008

Making money off a credit card can seem impossible, but this is not true. There are many ways to make money or receive discounted prices on every day purchases. This can be difficult for those who do not have the will power to say no to the purchases that are not a necessity. Those are the people that most creditors will tell them to tear up all of their credit cards except for one to use for emergencies. They are told to hide it some where so they are tempted to spend money they really do not have.

That is the point of the credit cards. You spend money you do not have and the credit card companies make money off the interest you pay them. How it works is that they loan you this money just like a bank would, but you pay them almost 20% percent interest on money you do not even have. This is where the problem begins. You place too much money on the card and you never get it paid off because you make the minimum payment and it only pays the total down a few dollars at one time. There is a simple solution for those who do not want this to happen, but want to use their credit cards to receive the benefits. Pay in full every month.

Make money from your credit card by using it more like you would a charge card. You can charge every thing you would normally pay for every month for your bills such as utilities, groceries, and gas. This way you can still get the benefits of cash back or receive the points from purchases made on your credit card. Most credit card companies offer a percentage back on purchases like gas or groceries. You get your cash back, but they do not receive interest from you because you have paid your monthly bill in full.

Placing your money in an account that will accumulate interest while you are waiting for the credit card billing cycle to end will make you money. You will not only make money off the credit card company because of cash back benefits and discount offered from your credit card company, but your money will also receive interest while still in the bank. You will write out only one check out of your account once a month and use the credit card on all other purchases. This allows your cash to stay in your saving account longer and will accumulate more money for you.

Though most people will find themselves in trouble when it comes to credit cards, you can be informed to make the right kind of purchases so you are not really using any credit because you already have the money in an interest receiving account. Make more money from your money instead of losing it to the credit card companies that make millions of dollars a year off of people who make rash purchases.