CreditCardsAct

If you have good credit standing and always pay your bills on time, you will receive a number of credit card offers. Banks will give you great offers because they are confident you will not default on the loans or extended credit given to you. Here are some ways you can use credit card offers to make money:

1. Apply for a credit card that offers 0% APR for a year, upon signing up. If you have a balance on another credit card, transferring your balance to a new card that offers 0% APR can significantly reduce the interest you are paying for. Or, you can get a loan with no interest by using your 0% APR credit card to get a cash advance. Place the money you advanced into a savings account with a high interest rate. When the 0% introductory rate ends after a year, take your money out, and pay the amount borrowed but keep all the interest earned in your savings account.

A sample scenario is, you are offered a credit card with an introductory 0% APR and a credit limit of $10,000. You can place the cash advanced in a high-yield savings account that offers 5.25% APY. At year-end, you would have earned $525.00 or $375 after taxes from the deposit you placed. You will not instantly get rich but at least, you earned an extra $500 or $1,000 that you did not have.

2. Get a credit card that offers rewards and cash backs. Credit card companies offer credit card reward systems designed to encourage the user to use the card more often. These reward systems can be used to your advantage and can actually save you more compared to buying some items in cash. Look for a credit card that offers cash back rewards. Cash back rewards usually allow you to use the rewards earned as you deem fit and do not have restrictions of use. Many credit cards offer 1% – 2% cash back. Depending on how you spend and how diligent you do credit card purchases, you can earn several hundred dollars in cash rewards in a year. Other types of rewards systems can be harder to earn points from due to black out dates, or minimum redemptions, and other conditions of use. Even if you spend, you also build cash rewards usually paid annually. You also earn cash back credits from card purchases, aside from earning extra monthly interests on your high interest account.

3. Manage your cash flow using a high interest checking account:
Open your main checking account that offers high interest.
Deposit your pay directly into your account that earns a high interest.
Find a reliable credit card that fits your needs and offers cash rewards.
Use your credit card that earns cash rewards to pay for monthly purchases. If possible set up to pay your mortgage and utilities with the card that earns rewards.
Pay your bills in full and as due, using your checking account

You have at least a full 30 days to pay your monthly bills from funds in your bank account. The amount earned from the “float” adds up to several dollars per year in interest earned, but would not cost you any extra pennies. Diligently pay your credit card bills as due. Late payments add on higher interest.

Using credit card offers to make money is a strategy that should only be used if you can manage your spending. Keep careful records of your transactions and be diligent with your actions.

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