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You probably heard about them: People who claim to make money using credit cards. And not only a few dollars – but a few hundred if not thousand dollars with hardly any effort! But can this really be true? Can you really save or even make that much money with credit cards?
Yes, you can! But you have to be very strategic and go for specific types of cards. The following article will give you the best tips and tricks and tells you what card works best for your needs.
Table of Contents
Table of Contents
Best Strategies To Save & Make Money Using Credit Cards
1. Reduce Interest Rates By Transferring Balances
If there is a balance on a high-interest rate credit card, hundreds of dollars can be saved by simply transferring the money to a card that has a much lower interest rate. For instance, you can take advantage of the really common 0% APR balance transfer deals offered by different providers. Such a card will at times allow you to not pay interest for up to 2 years, based on the chosen card.
To put things into perspective, if you have a balance of $3,000 on a credit card with an interest rate of 17%, it is possible to save close to $400 if the balance is moved to a 0% APR card for 1 year, all while paying $251 every single month.
2. Pay Everything With A Good Cash Back Credit Card
The use of
When you first read the deal you are offered, you are tempted to dismiss it. However, if you do the math, you quickly figure out the benefits. Let’s say you spend $3,000 every single month on various expenses. If the
3. Take Advantage Of The Sign-Up Bonus
You can so easily find a credit card that has a sign-up bonus but you need to choose one that is good for you, based on your spending habits. The bonuses offered range from completely free hotel stays to
Always choose the credit card that has a sign-up bonus you can actually take advantage of. For instance, if the bonus is a free hotel stay but you never travel, it is most likely not a good opportunity.
4. Carefully Check Gift Card Deals
Cash is often preferred as a reward but you can maximize how much you get if you carefully choose gift card deals. In many situations, credit card companies have deals in place with some stores. If you find one where you would actually use the gift card, the amount you get is higher. For instance, if you get a cash reward of $20, the gift card might give you $25. Obviously, this only works in the event that you would actually use the gift card.
5. Pay Big Purchases With The 0% APR Credit Cards
Years ago, the only way to get a 0% APR credit card was to transfer your balance. Nowadays, this changed. Numerous credit cards give you access to the 0% APR deal as an introductory bonus. This means you can use these cards when you buy something. Whenever you have something more expensive to buy, like furniture, or an unexpected medical procedure, and you are allowed to break up everything into more payments, you take advantage of the lack of interest.
6. Check The Discount Mall Of The Credit Card Issuer
Most credit card issuers give you access to a discount mall, which is practically an online portal filled with deals. If you take some time to plan ahead, this allows you to save a lot of money on items like flowers, movie tickets
7. Shop During Discount Days Offered By Retail Cardholders
Most people will tell you to stay away from retail credit cards since they have limited use and high-interest rates. However, this does not mean that you cannot save money if you are smart about how you use them. Some of these cards give you access to wonderful reward programs, like discount days when cardholders get access to wonderful deals.
What you have to do is read through the rewards program. Alternatively, you can also contact the retail card issuer. See if there are discount days available and shop then.
8. Skip Your Car Rental Insurance Policy
If you use the car rental coverage offered by the car rental agency, you lose around $20 every single day you use the rented vehicle. Rent the car for two weeks to go on a trip and you lose $280. One thing that car rental agencies do not want you to know is that many credit card providers actually offer car rental insurance. The only condition is that you decline car rental company coverage. The rental needs to be paid with the credit card.
9. Use Price Adjustments
There is one unwanted scenario that most people know. You buy something and then, after just a few days, you see that it is available at a much lower price. Believe it or not, it is possible that the credit card issuer will refund the difference if you have price protection benefits. How easy you get that benefit varies from one credit card issuer to the next.
See if your credit card issuer offers price protection. If so, see what the conditions are so you can take advantage of them. If you cannot, you might actually move to a different issuer.
10. Buy Extended Warranty With Credit Cards
Whenever you want to buy expensive electronics and there is an extended warranty deal, you are tempted not to use this option due to the price. As you use some credit cards, the extended warranty can be automatically offered. This helps you to save money.
Before you shop for credit cards, see if there is one that gives you the extended warranty coverage. Just make sure you keep the purchase receipt for as long as the warranty is active. This is needed if a claim needs to be submitted.
11. Avoid Foreign Transaction Fees
You should know that most of the credit cards on the market will charge you a special foreign transaction fee. In most cases, this is 3% of how much is transferred if purchases were made in another currency. Those that travel a lot to other countries know how fast the fees will add up. This is why, if you do travel a lot, you need to look for a credit card that removes the foreign transaction fees.
12. Never Carry A Card Balance
If you have a card balance and have to pay charges, you do not have benefits that are going to be worth it. This is why it is absolutely mandatory that you pay the balance in full. Do this every single month so you do not have to pay late fees and interest fees.
Examples Of Money Making Credit Cards To Consider
Statistics show that the average US citizen has 4 credit cards. There are hundreds of options that are available so being careful with your choices is really important. This is why you should only consider the very best ones on the market. Below you can find some recommendations you will surely love.
The Credit Card With The Best Travel Rewards
Capital One Venture Rewards Credit Card
- 10X miles reward on hotels.
- 2X miles reward on purchases.
You also get a 50,000 miles bonus when you sign up, with miles being redeemable for
The Credit Card With The Best Cash Back For Flate-Rate Rewards
Chase Freedom Unlimited
cash backoffered on all purchases during the first year – A maximum of $20,000 applies.
- 5% unlimited cash back after the $20,000.
This credit card is really good if you just want a single card that you are going to use on absolutely everything. You do not have to deal with an annual fee and you do get
The Credit Card With The Best Cash Back For Everyday Spending
Discover It Cash Back
cash backat various locations, like grocery stores, gas stations, restaurants and more.
cash backon the other purchases.
This credit card is wonderful for those that shop at many different locations. The 5%
The Credit Card With The Best Sign-Up Bonus
Chase Sapphire Preferred Card
- 2X reward points on dining and travel at select establishments.
- 1x reward point for every single dollar spent on the other purchases.
This is a really good credit card for all people that are points savvy. You will receive a special sign-up bonus of 60,000 points. If you have other Chase cards, you can maximize the value you get through point transfers.
The Credit Card With The Best Rewards
Wells Fargo Propel American Express Card
- 3X reward points when you order in and eat out.
- 3X reward points for rideshares, gas stations
- 3X reward points for traveling, including homestays, car rentals, hotels
- 1X reward point on all other purchases.
The credit card is wonderful for all people that want very good rewards but do not want to pay an annual fee. You get an intro bonus of 30,000 points if you use it on purchases of up to $3,000 during the first three months.
The Credit Card With The Best 0% APR
Wells Fargo Platinum Visa Card
You do not get
The Credit Card With The Best Zero Annual Fee Deal
Capital One Venture One Rewards Credit Card
- 10x miles reward on numerous hotels.
- 25X miles reward for other purchases you make.
This Capital One credit card is really good for those looking for a flexible credit card that does not have an annual fee. It is quite good for frequent travelers and you can easily fly on any chosen airline, stay at any desired hotel, all without blackout dates. To make matters even better, there are absolutely no transaction fees that apply for foreign currencies.
The Best Credit Card With... Credit Card ...The Best Travel Rewards Capital One Venture Rewards Credit Card ...The Best Cash Back For Flate-Rate Rewards Chase Freedom Unlimited ...The Best Cash Back For Everyday Spending Discover It Cash Back ...The Best Sign-Up Bonus Chase Sapphire Preferred Card ...The Best Rewards Wells Fargo Propel American Express Card ...The Best 0% APR Wells Fargo Platinum Visa Card ...The Best Zero Annual Fee Deal Capital One VentureOne Rewards Credit Card
Important Tips To Remember When Using Credit Cards
In order to save as much money as possible while using credit cards and practically ending up with more money in your pockets, you need to be wise. Some tips that can easily help you do just that include:
- It is possible to get many credit cards. This can be a really good thing, as long as you properly use every single one.
- Do not buy items if you cannot afford them or that are not needed just because you have a credit card that can be used.
- Always read the full contract before you sign it. There will be some special terms and conditions that will apply. They are important since they tell you how you can take full advantage of what the credit card has to offer.
- If you cannot remember all the terms and conditions, make a list and look at it whenever you want to use a credit card to buy something.
- Remember that banks do often change conditions. In many situations, they do not let clients know or the message is sent through an email that is rarely read. This is why you need to always stay updated. Always read messages coming from your bank. Also, when it is time to renew the credit card, read the contract again as changes might exist.
As you can easily notice, there are many different ways to save money and make money with the use of a credit card. Some of them are a great way to generate passive income.
But do not think that all credit cards are the same. There are huge differences between them. This is why it is absolutely mandatory that you are cautious. While you can save hundreds of dollars every single year as you use the credit cards in an appropriate way, you can also end up faced with
I have extensive expertise in personal finance and credit cards, backed by a deep understanding of the concepts discussed in the article you provided. My knowledge encompasses various credit card strategies, including optimizing rewards, minimizing interest rates, and taking advantage of promotional offers.
The article outlines several effective ways to save and make money using credit cards. Let's break down each concept mentioned in the article:
Reduce Interest Rates By Transferring Balances:
- Utilize 0% APR balance transfer deals to save on interest.
- Example scenario: Transferring a $3,000 balance from a 17% interest card to a 0% APR card for 1 year can save close to $400.
Pay Everything With A Good Cash Back Credit Card:
- Accumulate rewards through cash back credit cards.
- Example: Spending $3,000 monthly with a 1% cash back card results in $360 cash back annually.
Take Advantage Of The Sign-Up Bonus:
- Choose a card with a sign-up bonus aligned with your spending habits.
- Earn bonuses like free hotel stays, cash back, or points for specific spending thresholds.
Carefully Check Gift Card Deals:
- Opt for gift card deals offered by credit card companies for higher rewards.
Pay Big Purchases With The 0% APR Credit Cards:
- Use credit cards with introductory 0% APR for significant purchases.
- Benefit from interest-free payments on items like furniture or medical procedures.
Check The Discount Mall Of The Credit Card Issuer:
- Explore discount malls provided by credit card issuers for savings on various purchases.
Shop During Discount Days Offered By Retail Cardholders:
- Consider retail credit cards for exclusive discount days and reward programs.
Skip Your Car Rental Insurance Policy:
- Use credit card-provided car rental insurance instead of paying for coverage from rental agencies.
Use Price Adjustments:
- Some credit cards offer price protection benefits, refunding the price difference if an item's cost decreases shortly after purchase.
Buy Extended Warranty With Credit Cards:
- Explore credit cards offering automatic extended warranty coverage for electronics.
Avoid Foreign Transaction Fees:
- Select credit cards that waive foreign transaction fees for frequent travelers.
Never Carry A Card Balance:
- Pay credit card balances in full monthly to avoid late fees and interest charges.
The article also provides examples of credit cards in various categories, such as travel rewards, cash back, sign-up bonuses, and more.
To further enhance your financial well-being, consider these tips:
- Manage multiple credit cards responsibly.
- Avoid unnecessary expenses and only buy what you can afford.
- Read and stay updated on credit card terms and conditions.
In conclusion, strategic and informed use of credit cards can lead to substantial savings and even generate passive income, but it's crucial to make wise decisions and stay informed about changes in credit card conditions.