I know that it sounds crazy but it is possible to make money using credit cards. Many people are using credit cards to make money but you must have discipline and pay these cards off without being charged interest or fees. There is two ways to make money using credit cards that I will discuss. Personal finance advisors will tell you never to use credit cards unless it is an emergency. I will tell you to use them ONLY when you can make money.
Use Credit Cards For Everything
Almost every personal finance advisor will tell you to stay away from credit cards and pay them off as soon as possible. Why do they tell you this? Credit cards have high interest rates and can cost you money, a lot of money, when used without discipline. Personal finance advisors won’t tell you to use credit cards because they don’t want the backlash of what can come from credit card debt if not paid in time; but when used wisely, you can profit from credit cards rather easy.
Don’t Pay Interest Or Fees
If you take anything away from this article know this, interest and fees are TWO THINGS YOU MUST AVOID. Interest and fees will kill any chance of you making money with credit cards.
Cash Rebates = Free Cash
This concept of making money with credit cards is rather easy. Start by looking for the high cash rewards credit cards, don’t worry about the interest rate because it will you pay it off before accruing interest. Most cards allow online account access; make sure that you have access to your account online as this will be your method of paying the bill. You found a credit card with online account access, now what? Find the purchase grace period; this is how long you have to pay the card off without being charged interest. Remember, no interest and no fees. Now, just use this credit card to pay for everything you can and pay it off as you charge it. Link your normal checking account to your credit card account, go shopping or pay bills as you normally would but use your credit card. As soon as you charge it, go home, get on the internet, and pay it off. You get cash rewards for purchasing something you would have purchased anyway. I would also recommend that you get a high yield checking account, like ING’s Electric Orange, to earn interest on your cash up to the day you spend it or the day before the grace period ends.
The second way is to use credit cards for balance transfers and put the money in a high yield savings account. I have used this method in the past but high yield savings accounts are not yielding what they used to. This method is best used when high yield more than 3%. MyMoneyBlog.com has a great step-by-step plan on using balance transfers to make money.
These are two ways that you can use to make money off credit cards. Please use discipline or else your will pay dearly.
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