Credit cards have become synonymous with debt. However, if you can swipe credit cards responsibly, then you can not only avoid getting into debt but also make some money.
Are you wondering if you have read the last line with proper attention? Well, it is true. If you can use credit cards responsibly, then you can make some extra money. Here are some tips and tricks to make money with credit cards.
- Credit card bonus: Have you heard about rewards credit cards? If you are an American, you must have heard about them. Well, several rewards cards give sign-up bonuses to consumers when they open a new card and meet specific criteria. Research and find out the cashback credit cards that offer money in the form of cashback or miles or points when you make purchases worth $500 to $1000 in the initial few months.
*Many credit cards offer long-term benefits to consumers.
You can get a bonus for making purchases. You may earn points or miles rebates whenever you redeem rewards. Other than that, based on your credit card usage, you may also get an annual reward bonus.
- Earn bonus rewards for every transaction: Apart from the credit card bonus, there are many other things you can enjoy. For example, you can earn rewards for the everyday purchases you make with reward credit cards. The more purchases you make, the more rewards you will earn. That is the beauty of rewards credit cards. Some rewards credit cards even give bonus rewards on specific categories like restaurants, groceries, and gas.
Evaluate your spending habits before you choose a rewards credit card. Try to select a card that gives you the maximum rewards based on your household budget. If you are a responsible consumer, then you can even use multiple credit cards to earn lucrative rewards.
- Earn rewards for your online purchases: Do you know that you can make money while making online purchases? When you use credit cards to shop online, you can get flat discounts on your purchases. That comes with specific terms and conditions. For example, you may qualify for discounts only when you shop online up to a certain limit. Apart from that, you can earn rewards for your purchases.
Explore the websites that help you to make a comparative analysis of all the shopping portals to make sure you are getting the best rewards for your online purchases.
- Hold on to your cash with balance transfer credit cards: What is the best way to get out of credit card debt? Is it a debt settlement program or a debt snowball method or a debt avalanche method or a debt management program, or bankruptcy? Well, each debt relief option has its pros and cons. But all of them do help you to get out of credit card debt.
Balance transfer credit cards help you to pay off credit card debts while holding on to your money. These cards allow you to save money on your debts. As such, you can utilize that money to give a much-needed boost to your financial life.
Balance transfer cards come with an O% APR for a fixed period. That introductory period typically lasts between six and twenty months. Let us first understand how balance transfer credit cards help you to save money.
Here you apply for a balance transfer credit card online. Once you meet the eligibility criteria and get the credit card, you can transfer your outstanding balance on another high-interest card into this one. What you have to do is, pay off the outstanding balance of the high-interest card with the balance transfer card. You have to pay a balance transfer fee on the total amount transferred. The balance transfer fee usually varies between 3% and 5%.
After paying off all your debts, now you are left with a single balance transfer credit card. The interest rate on this card is 0% for six to twenty months. So, you have to pay the entire balance within the introductory period. That means you will save the total interest. You do not have to pay a single penny for it.
Do not worry about the balance transfer fee. That is negligible in comparison to the amount you will save on the interest rate. Your savings will be far more than the overall cost of the balance transfer credit card. Moreover, some balance transfer credit cards do not have any fees also.
A word of wisdom
While rewards cards help you to make money, there are a few things that you should know. For example, the annual fee on your credit card. How much do you have to pay for the annual fee? Is it a lot of money? Is it almost the same amount that you will gain through rewards? Or is it far less than what you will get as rewards? Calculate every dollar you will gain and lose before making the final decision.
Analyze the credit card’s rewards programs and the associated perks. That will help you to understand if the cards are worth it. For example, in the case of mileage rewards cards, you may qualify for various perks such as in-flight discounts and free checked bags. So, that may help to combat the cost of the annual fee.
Cashback credit cards help you to get money back in your wallet. That is the best part of cashback credit cards. Check out the best cards available in your area to save and make money.
Author bio: Stacy B Miller is a writer, blogger, and content marketing enthusiast. Her blog vents out her opinions on debt, money, and financial issues. Her articles have been published on various top-notch websites and she plans to write many more for her readers. You can connect with her on Facebook and Twitter.