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5 Ways to Earn With Your Credit Card
Although credit cards generally have a bad reputation for high fees and creating mountains of debt, with responsibility and proper usage credit cards can not only create a more stable financial situation but earn you cash and rewards, too. By selecting a good cash back or rewards card, for example, you can earn up to 20% back on your purchases in some form. Here are 10 easy ways you can earn money with your credit card. 1. Pick a Good Performing Rewards Card First! Selecting a good rewards card is the first step to earn with your credit card. Do your credit card comparison online to find the cards that earn the best rewards, which may not necessarily be cash. To maximize your earnings, look into other forms of reward payments. Typically, cash back cards will give you the least return and often only provide 1-3% cash back on purchases. Cards that allow you to get gift cards, on the other hand, allow you to trade in points for gift cards at stores you shop at anyway. Always select a card that has no annual fee and be sure to read fine print, otherwise you're just giving away all the rewards you're earning. Also, pay off your balance in full to avoid any interest whatsoever. Even a month's worth of interest on an existing balance can erase your rewards for months. By paying off your balance and avoiding fees you're using a credit card that's basically free. 2. Aim for Higher Cashback on Everyday Purchases If you're interested in cash back, select a credit card that offers a higher cash back percentage on grocery and gasoline purchases. These purchases alone can be up to $500 a month for a typical family, and with 2-5% cash back, that's $10 to $25 per month you get back on only two expenses. These credit cards usually offer a flat rate of 1% on all other purchases, but with another $1,000 in monthly purchases you've added another $10 to your cash back for the month. So with a basic cash back card you're looking at about $35 per month in the form of a statement credit or check in the mail. 3. Spend Lots With Your Cards & Pay it Back in Full The next way to earn with your rewards card is to buy absolutely everything with it, as long as you remember to pay in full each month before interest is charged. This is absolutely essential to make sure you earn as much as possible. Even small purchases at a gas station for cigarettes and soda (remember gas station purchases typically earn more!) will add up. 4. Look Out for Cards That Match Your Lifestyle Consider other forms of rewards as well that will match your lifestyle. For example, there are a few credit cards on the market that will use the points you earn to make principle payments on your home mortgage. Other credit cards will automatically deposit your rewards into a savings or investment account or even a 529 college fund. Fidelity offers an American Express card that earns 2 points per dollar spent which are converted into dollars at a 1% interest rate which is then deposited into your Fidelity IRA or 529 account. 5. Be Aware of Special Offers From Your Issuer Another way to earn with your credit card is to look for special bonuses and programs offered by your credit card company. For example, some credit card companies have their own online store that allows customers to use their rewards card for even bigger points rewards or cash back. By shopping through the online store at retailers you use anyway, you can go from earning a standard 1% cash back to 10% or more. Other credit cards may offer double rewards on certain purchase categories, like drugstores, groceries, gasoline or restaurants. By watching for these special bonuses you can time purchases to earn even more. Using the best rewards credit card is very straightforward and easy if you're careful. Remember to always pay your balance in full, be mindful of fees and avoid credit cards that have annual fees or low caps on rewards. Select a credit card after some online research that will match your needs and use it for absolutely everything. By following these simple tips you'll be on your way to earning up to $50 per month on simple everyday purchases you're making anyway. |
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