Blog - Wise Financial Cents

You can make money using your credit card. The best part is you can earn from the normal purchases you make on a weekly basis anyway. Most people will tell you to be careful with credit and that credit cards are a big liability, and yes we agree. That can certainly be true. But it does not have to be that way. Let's talk about how to make money using your credit card. In this blog post we aim to teach you some tips and tricks to help you turn a liability into a asset that you can make money with every month. Before we dive into exactly how to make money using your credit card we want to outline a couple things not to do if you want to be successful with this. How To Use a Credit Card Responsibly Credit cards can be major liability's. Think of all the people who dug themselves into large amounts of credit card debt. Most people think they can just pay the bill later. This is true in most cases until something bad happens. Life can throw us many curve balls and the unexpected always comes up. The $2,500 in credit card debt may not be a big deal to pay off right now... Until something bad happens and your income goes down or you loose your job or business completely. Most people who get into credit card debt were financially responsible people just like you and I. Most people did not go on a binge spending spree and buy a collection of custom Rolex's. Keep this in mind and always be responsible with credit cards and credit card debt. Always Pay Credit Card Balances Making money with your credit card is a great income hack. But it must be done right if you want to actually make money with this. Carrying balances on credit cards will cause you to loose money in most cases. Using the strategy we are about to outline will make you money in cash rewards. But the interest will eat up all the profit you make. So make sure to pay the balance every month and avoid the hefty interest charges. Some credit cards offer a 0% intro APR to start but quickly roll over to a high interest rate within months of the promotional offer. This is when it becomes super important to stay on top of your balances and payment dates. How To Make Money Using Your Credit Card Making money with your credit card can be easy once you have the blueprint and mindset down. The first thing you will need to do is decide if you will benefit more from cash rewards or travel rewards. This will be important when it becomes time to select the credit card you want to use for this strategy. Always pick a card that will benefit you most. Each credit card offers different rewards for different things. For example, one credit card could offer you 3% cash back on gas purchases while another card could only offer 1% back on gas purchases. If you are someone who drives a lot and spends a large part of your budget on fuel this might be the perfect card choose for you. Next it is time to swap out your debt card and start making your purchases on your new credit card. Think of all the things you spend money on every week. What if you could be making 1%, 2% or even 3% on all of those purchases? Well, you can. This is why this is so powerful. You can start earning money on the things you were purchasing anyway. Reasons You Should Use Credit 1. Cash Rewards If you are using your debit card for your daily purchases you are leaving a lot of money on the table. How many times a week do you go to the gas station or the grocery store and pay with your bank card? If you are like us it is many times a week and you could be earning cash rewards every time you do it. There are many great Cash Rewards cards available on the market. You can find cards like the discover it card and Bank of America Cash Rewards card. These can be great places to start if you want to start implementing this strategy into your life and personal finances. Cash back cards are one of the most simple to start using. You do not have to worry about calculating points or exchanging rewards for flight tickets. You simply use the card and earn a percentage back in cash rewards. 2. Travel Rewards Do you love to travel? If you have big plans to see the world this might be perfect for you. Travel rewards cards are crafted with the frequent flyer in mind. Flights can be expensive. Using a card like this for your daily purchase can help you start building miles for your next trip. Another great thing about travel rewards credit cards is the sign on bonuses you can often find with this credit card type. If you do some shopping you should be able to find some great credit cards with attractive sign on bonuses. 3. Build Your Credit Good credit scores are important in 2021. Weather you plan to buy your next car or home you will likely need good credit. Using your debit card does not help you build this valuable asset. But using this credit card strategy can help you build a strong credit profile while helping you earn rewards points at the same time. If you use your card responsibly and pay your balances down monthly you should see your score building over time. Credit companies report your payment history to 3 credit card bureaus each month. So make sure not to be late or miss payments. Conclusion You can make money with your credit card by simply making the purchases you make on a day to day basis already. You can be successful with this and build credit at the same time if you are responsible with your spending and payments. Not every credit card will be the right fit for every person. Take the time to think about your own personal lifestyle and decide which credit card fits you best. When it becomes time to apply try to fit credit card offers with sign on bonuses. Next time you swipe, I hope you are able to earn some cash rewards or travel rewards for your next trip.