Most of us only think of credit cards as ways to spend money and not ways to make money. But, if you really think about we could all stand to make a bit more money using the same kinds of tricks that card issuers use to get our business. Credit card companies have become infamous for luring new customers with the offer of no interest on purchases. While this sounds great in the beginning, consumers quickly find that once the introductory period runs out they are slammed with a high standard rate. For those who carry a balance on their credit cards this usually means spending loads of extra money on interest. Of course, the easy way to avoid that cost is to pay off your bill each month, but that also means taking money out of your checking account which just means breaking even on your finances.
Imagine if you could have the best of both worlds. You could spend on your credit cards without having to empty out your cheque account at the end of each month and also not have to spend a bunch of money on interest. In fact, you can do just that with a unique spending plan that gives you the freedom of using credit cards but comes with a profit instead of a cost. This plan is not for everyone, only those people who can spend wisely and save carefully. Those that fit the bill can make a neat little profit through nothing more than normal spending.
Making Money With Credit Cards
Step 1: The first step to making easy money with credit cards is to seek out those zero interest introductory offers. Make sure that you find a card that offers you an interest free period of several months, the longer that period lasts the better more money you can make. If you can find a deal that is also free of annual fees then you stand to knock up your profit a bit more. You will have to fill out an application and be approved for this card, so having a fairly good credit file is necessary.
Step 2: Once you have procured the credit card the next thing to do is to use it as often as possible. You should switch all of your spending to your credit card instead of using cash or a cheque. This means every time you go out to dinner, buy groceries, or fill your car with petrol you should use your credit card. At the end of each month pay only the minimum payment. Make absolutely sure that you pay your bill on time each month so you do not lose that zero interest deal.
Step 3: After you have paid your minimum payment and any other necessary bills, take the remainder of your cash and put it into a high yield savings account. This is how you will make money. Over time the money that you put into the account will grow far past what you need to pay off your credit card bill. Since that card has zero interest it should cost you nothing to revolve your balance, but you will be earning big money on your savings account.
Step 4: Finally, when it comes time for your zero interest promotional offer to expire, simply pay it off with the principle money in your savings account. This will leave you with a net profit of all of the interest you earned. There you have it, free money just by doing your normal spending. The only trick is to maintain good credit so that you can continually get those zero interest cards and good accounting skills so you can count up your big profits.
This article was written by Timothy Ng. You can read more of his work at Credit Card Finder, where he has a number of comprehensive guides to find the best credit cards.
Subscribe to:
Post Comments (Atom)
o thats very strange and amazing...i will try this at home too =)