How Credit Cards Can Help you Make Money

Strange, isn’t it? How a potential debt trap - a credit card - which is much maligned for tempting you to spend money … can actually help you to make money? If you think you are about to get tips on how to make your first million, you might be disappointed. Credit cards can help you make money either by saving it or by earning a bit back. If you are in debt or if you have sworn unwavering loyalty to one card then you too might be a bit disappointed. If pay off your debts regularly, have the time to investigate good offers and can juggle different types of cards, read on.

Use Cash Back Credit Cards

Such cards will return between 0.5 % to 2% of your monthly spending back to you in the form of credit for your next month’s spend.

Become a Rate Tart

Rate tarts play the credit card system and have found a way to keep borrowing credit, for free. Instead of using debit cards, rate tarts regularly use cash back credit cards following a simple logic – cash back rewards are a tad bit higher than the paltry interest they receive from their current accounts. Every month, they pay off the outstanding from their current account.

Smart tarts spend considerable time and energy unearthing a current account that offers a good interest rate to them. They continue using a cash back card because they earn the interest from the account and also get the cash back rewards.

Veteran tarts take this a step further. They use a number of 0% balance transfers in quick succession, which allows them to earn an additional interest on their savings account. When their outstanding becomes too large or too cumbersome, they pay off just enough of their debt in order to keep going.

Become an Account Sweeper

Keep moving money regularly back and forth from your current to your savings account where it earns a better rate of interest. When you need to make payments for your card, sweep it back into your current account.

Become a Mortgage Sweeper

Off-set all the interest you earn in your savings account by sweeping it into an offset mortgage. If you add your money to offset your mortgage it helps reduce the debt burden slightly. Sweep the money back into your current account when card payments are due so that your savings become tax free.

In addition, you can also use reward cards, balance transfer cards, the golden greeting introduced by some credit cards, take advantage of any sign up discounts offered and so on. But don’t forget, these suggestions will only help you make money if you pay off 100% of your debts every month