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How To Make Money With Your Credit Card

credit cards

It is possible to use your credit card to make some extra money if you know how. While credit cards are usually associated with the thought of debt, they can actually make you profit.

In order to make money using your credit card you’ll have to always use it wisely and use self-discipline when you spend with it. If you are able to keep these things in check, you have the potential right now, as a credit card holder, to start turning a profit.

Make money with your credit card

Here are some ways that you can use your credit card to make money.

Get a credit card that offers a cash back program

If you make an application for a credit card that has a cash back program attached to it, you will get paid for using your credit card. You’ll have to use your card often and for big items in order to see much profit, but if you plan on doing some spending in the near future it will definitely pay off.

The thing you have to watch when you have this credit card, however, is to always pay the bill in full every month. If you don’t, you’ll be hit with a high interest rate that you’ll have pay. This can cut into your profits so much that it is not worth getting a cash back card if you’re not sure if you can pay off the balance every month.

You also need to read the fine print before applying for a cash back card to find out if there are any limits as to how much you can get back in a year. Some cards will only pay out $300 or less on a yearly basis.

You also need to find out if you can get cash back on any type of purchase. If the purchase types are limited, this card may not work for you if it is a type of spending you plan on doing with the card.

A problem can also arise if you become a careless spender just to get the cash back. As long as you use this card properly, it can be a little money maker for you.

Get a balance transfer card

Start by opening an account for savings and begin to see interest accumulate. Next, apply for a balance transfer card with a 0% interest rate. Once you have transferred the balance over to the new card you’ll be able to pay off your debt without having to worry about any interest being added.

The interest that you save can be put directly into your savings account so that you start seeing more interest added to your savings.

Starting a new business with a credit card

If you are sure that the business you’re going to start up is going to give you immediate profits, the best way to get started is by using a credit card. While there is always a risk in beginning any new business, it is one worth taking if you have done some research and know that the profits will be there.

Finding a low interest card

If you can find a credit card that only charges 5% to 6% for a cash transfer or withdrawal, and a savings account with a 7% interest rate or more, you can transfer money to the account and profit from it. You’ll have to make sure that you don’t use your card for any spending if you follow this practice. Only use the card for this use and you will definitely end up with more money in your savings account every month.

While you may have never before thought it possible, a credit card can be used to earn income. As long as you use the credit card following the advice above, you will end up with more cash at the end of the month, every month.

This article was written by personal finance writer Timothy Ng from Sydney, Australia. He is genuinely passionate about helping people compare credit cards and helping them through researching to find the best credit card.