Credit cards are not a bad thing and can actually help you earn money if used wisely. Here is a list of 4 ways that a Credit card can help you earn money.
1.) Cash back for signing and using the card – Some cards will actually give you cash back for signing up and using their card. Usually you will need to make about 4-10 purchases to meet their requirements, which is easy to do if you just apply yourself.
2.) Rewards programs – I love these programs. Make sure when you sign up for a card that they have a rewards programs that fits your needs. Some do not have them, while others only give FREE airline miles. That’s not good if you don’t fly. Try to get a program that offers cash back for percentage used or gift cards for your favorite restaurant/store. If you have to pay off your bills anyway, then why not get paid for it through the rewards program.
3.) Special Deals (%10 off, coupons, etc.) – Many big time stores will offer their own credit cards. As you sign up and use their card, these stores will offer special deals/coupons as long as you use their card. Sometimes it can be a percentage of the purchase or a fixed amount off of a certain purchase. Either way you will save money that you would have lost otherwise.
4.) 0% interest for 12 months -These are great deals. It’s basically getting a FREE loan for a full year. By using that money to pay off your other bills to help you catch up in the end, you will save yourself a lot of money in interest.
Here are some tips to watch so that it does not backfire when you try these money-earning methods.
1.) Make sure to pay off your debt before the 12 months is up – If you don’t then you might have to pay the interest for the year, or just paying the monthly interest is going to be bad.
2.) Don’t over spend – Just because you have credit, does not mean you should use it. When people get a sense of security they became more apt to spend their money. We are trying to make money for you, so be conscious that you are not making any ridiculous spending.
3.) Don’t just buy because you have a coupon – Self-explanatory.
4.) Don’t just spend to get more rewards – You can become excited to watch your rewards build, but you are only getting about $1 for every $100 spent.
5.) Watch the fine print and make sure there is NO fee for balance transfers – Just watch the fine print and make sure you are not getting a fee for a balance transfer. Some credit cards will give you 0% interest for 12 months free, but watch the fine print first before you try.