When most people think about credit cards, they think about spending money, not saving it. The average American is walking around with almost $6,000 worth of credit card debt to their name.
But there are a variety of ways in which you can make money with credit cards…if you play your cards right! You can use the credit cards that you have sitting in your wallet to pad your bank account as opposed to depleting it.
People might look at you sideways when you tell them that you’ve found ways to make money with credit cards. But you’ll love how great it feels to bring in some extra income every month with your credit cards without putting in a lot of extra effort on your part.
Here are nine ways to make money with credit cards and swipe your way to financial freedom.
When you’re first applying for a credit card, it’s a good idea to find one that offers you rewards when you use it to make purchases. Using a rewards credit card to make as many purchases as you possibly can is one of the easiest ways to make money with credit cards.
Most rewards credit cards will provide you with one point for every $1 that you spend with it. Once you rack up enough points with your credit card, you can redeem them for things like:
There are some people who obtain a rewards credit card and use it to pay for everything, including groceries, gas, and clothing, throughout the month. They then pay off the balance of their credit card when the month is over and accumulate a lot of points that way.
While collecting points and using them to get things like free flights and free hotel stays appeals to certain people, others would prefer to put cold-hard cash in their pockets. And we don’t blame them!
Fortunately, it’s easy enough to do it when you have a cash back credit card. You can make money with credit cards by turning to this type of credit card time and time again.
Here’s how the average cash back credit card works:
It’s that simple. Just like with rewards credit cards, there are some people who will use cash back credit cards to pay for just about everything throughout a given month. They’ll then pocket the cash that they get back or, better yet, invest it and watch it grow even more.
Regardless of whether you choose to apply for a rewards credit card or a cash back credit card, you should always look for sign-up bonuses when obtaining a new credit card.
The credit card industry is extremely competitive. Credit card companies are always trying to one-up one another in an effort to entice people to put in applications. Many do it by offering sign-up bonuses to their customers.
Some credit card companies offer people a bunch of free points that they can use towards free flights and free hotel rooms when they sign up for a card. Others offer large amounts of cash back to them.
The only thing you’ll need to do is get your card and use it to spend a certain amount of money within the first few months. As long as you’re able to do this and meet certain requirements, you can make money with credit cards without doing anything other than using them to make regular purchases.
About a decade ago, there were still a lot of Americans who were apprehensive about shopping online. They refused to do it because they weren’t convinced that it was safe to use a credit card to purchase things on the internet.
Today, almost everyone is on board with the idea of shopping for things online. More than 95 percent of people use the internet to buy the things they want and need.
There are simple ways to get more bang for your buck when you use a credit card to make online purchases. There are online cash back sites that will double the cash back rewards that come with your credit card in many instances.
The only thing you need to do is visit these sites and use them to find the things you want to buy. By clicking on the links they provide for certain products, you can boost your credit card’s cash back rewards in an instant.
You should get into the habit of checking online cashback sites to see what they have to offer. You should also check to see if your credit card company has an online portal for customers that offers similar opportunities.
Many credit card companies will offer additional cash back incentives to their customers when they shop at certain stores in their online portal. You could very well find that your credit card company’s portal features many of the stores you’re already shopping at online.
Is there anything more frustrating than purchasing something and then seeing the price for it drop dramatically a few days later?
Believe it or not, you might be able to avoid this frustration with help from your credit card company. There are many companies that now offer price protection benefits and refund the price difference when the price of an item drops.
Not all credit cards offer price protection. But if yours does, you should keep your eyes peeled to see if the price of anything that you buy goes down. You could be entitled to make money with credit cards if you have price protection.
Is the interest rate on one of your current credit cards making it impossible for you to pay down the balance of it? You’re wasting money every month if the only thing you’re able to do is pay the bare minimum.
Rather than fighting an uphill battle with a high-interest rate, look for a credit card that offers a 0 percent balance transfer. You can take the balance on your old credit card and transfer it to your new one to save a ton of money every month.
There is often a small balance transfer fee that you’ll need to pay. The interest rate on your new credit card will also spike after 6 or 12 months in most cases.
But if you put a plan into place for paying your credit card debt down, it could be well worth your time to use a balance transfer to save a small fortune.
Are you planning to make a big purchase sometime soon? Maybe you’re going to buy new bedroom furniture or take a family vacation.
More often than not, people will simply throw these kinds of purchases onto an existing credit card and pay for them over time. But that might not be your best option since it could cost you money in the end.
Instead, why not apply for a new credit card that offers a 0 percent introductory interest rate on it? This will allow you to make big purchases and pay for them over time without paying a lot of money in interest.
When you rent a car, a car rental agency will ask you if you want to invest in insurance for it. It’s smart to have insurance on a rental car in case you’re ever in an accident.
The problem, of course, is that car rental insurance can send the price of a rental car skyrocketing. In some instances, it can cost you an extra $20 or more every day.
There is no need for you to use your car rental company’s insurance if you have a credit card in most cases. The majority of credit cards will provide you with car rental insurance, provided you decline the insurance offered to you by your car rental agency and use your credit card to pay for the rental.
You could save more than $100 a week when renting a car by relying on your credit card company for insurance.
Many people automatically associate credit cards with debt. They don’t know that they can make money with credit cards.
Use the tricks that you’ve learned today to use credit cards to their full potential. You could make hundreds, if not thousands, of extra dollars every year when you know how to take advantage of credit cards.
Browse through our blog to learn about other ways to improve your financial situation.
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