How To Earn Money From Credit Cards?
Credit cards have been associated with financial trouble for years, but have you ever noticed that you could earn from your credit cards? If used strategically, credit cards have the potential for cash inflow rather than cash outflow. This article has four simple and effective ways to use your credit cards to earn money. Why wait? Let’s have a quick pick at these methods!
4 Ways To Earn From Credit Cards:
SIGN UP BONUSES
If you are looking for methods to earn from your credit cards, the first thing you should be doing is sign up for bonuses. Wondering why? Well, honestly, the real money in credit cards is from bonuses. The offer is something like this:
Spend $ 1000 within the first two months to avail a bonus of $200.
These credit cards compel you to spend a certain amount of money in a particular time frame, mostly three to four months, to earn benefits.
Are they included with cashback offers? We get this question most often but rest assured you will get additional cashback. Say you purchase something at 3% cashback; then, with your $30, you will get $200.
Please note that the bonuses specified for sign-up are for new crest card owners. Hence we recommend you keep purchasing new cards to avail of this bonus.
This is an excellent approach to earning money. Suppose you were planning on purchasing online. If you purchase through retailer sites like Swagbucks or Rakuten, they will offer you cashback. Apart from that, if you use your credit cards, you can also avail of extra cashback. Let’s say your credit card offers 2% cashback, and these retail sites a cashback of 5%. You end up with a 7% cashback which might seem small at one purchase, but considering the number of times we have to shop online, this can be a great way to piggy bank hard-earned money.
TRAVEL REWARDS CREDIT CARDS
Another best way to make money from your credit cards is to get one travel reward credit card. How do they work? The process is a bit different from cashback or bonuses. Instead of getting money, you will be rewarded with points for every dollar that goes out of your credit card.
So, if you are spending 2000 dollars a month, you will have 2000 points which will sum up to 24000 every year. But what will you be doing about these points? These points will come in handy when you are traveling. You can book hotels and airfare for free using these points. Moreover, some travel reward credit cards allow you to transfer the points to your loyalty program.
CASHBACK CREDIT CARDS
As you might have guessed, a cashback credit card is a card that offers cash back every time a person makes a purchase with it. Well, generally, you will find the different percentages of cashback offers ranging from 1-4%.
Now, if you are spending around $2000 a month on your credit card, you will be getting $20 in a month, which will add up to $240 in a year. Similarly, if the cashback % is more, your savings go up.
However, don’t let these cashback influence your purchase decision. Sometimes people fall into the loop of spending more than they require to avail of cashback. We would straightaway recommend you to stay away from these traps.
Wrapping It Up:
For years you might have been having nightmares regarding using a credit card. But after this post, you would not be afraid anymore! The truth is credit cards can be destructive. However, they can also be the best way to save and earn money. It all depends on how you use your credit cards. One can avail the most benefits from your credit cards with proper planning and budgeting. The simple trick is to avoid impulsive spending and keep an eye on offers, rewards, bonuses, etc.
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