If you’re smart about paying your bills off each month, then you already know how to avoid paying interest fees. But did you know you can also make money from credit cards?
The key is to have a good money-making strategy in place, and to keep paying your statement balances in full each month.
Check out these five ways to make money with credit cards:
Way #1: Cash in on Rewards
Many cards offer a rewards program. In fact, if you’re shopping for credit cards, you should always aim to choose one with various perks and rewards.
Some cards offer you one point for each dollar you spend, and some offer two points or more. When your points rack up, you can spend them by shopping online, using them for travel or getting cash back.
Way #2: Collect Bonus Cash Back Offers
Some credit cards offer more than just rewards. They have bonus cash back opportunities where you can get up to five percent cash back when you shop in certain categories. For instance, purchasing your gas with your card could get you cash back during certain months.
Cards like Chase Freedom typically offer categories such as restaurants, home improvement stores and even utility and insurance bills. Just make sure you pay attention to these special announcements and activate the offer when the time comes.
Way #3: Take Advantage of Large Sign Up Bonuses
Have a big trip coming up? Sign up for a mileage bonus card right beforehand. Cards like Capital One’s Venture Rewards Credit Card offers a bonus of 50,000 miles if you spend $3,000 in the first three months. You can then use the miles to pay for a flight.
However, you’ll want to be careful of annual fees. Cards that offer lots of travel perks could cost you money in the long run if an annual fee is tacked onto the balance. You won’t have a problem though if you continue using the card and cashing in on rewards throughout the year.
Way #4: Invest Your Cash Back
One of the best ways to make money from your credit card is to deposit the cash you get back into an investment account.
For instance, Fidelity Rewards Visa Signature card will automatically deposit your cash back rewards into a retirement or brokerage account. This is a sure-fire way to put your money to work for you.
Way #5: Sell Your Points to Friends and Fam
Selling your points to people you know is the trickiest way to make money from your credit cards. The method involves booking a flight for them using your rewards or mileage points. They would then pay you the cash they would have spent on tickets or you might offer them a discounted deal.
But be careful with this method. You’ll need to make sure the flight you book is transferrable to someone else, or that your card will allow you to book a flight in your friend’s name.
Collecting cash from credit card offers is an easy and fool-proof way to make money from your creditors. Most cards give you a 30-day grace period to pay off your statement balance each month. If you stay within the window, you should be able to make a tidy income from credit card purchases. Want more smart credit advice? Go >>HERE<< and start your journey to better credit and drastically upgrading your lifestyle today.