Using Cash Back Credit Card to make money

by Kowgirl

Make money when using your credit cards

Most people see credit cards as a debt to be paid every month while some of us view them as a means to make money.

The Benefits of Cash Back Credit Cards

Cash back credit cards pay you a percentage rebate on the money you spend on the card.

Many cash back cards offer as high as a 5% cash back on purchases at supermarkets, drug stores, and gas stations, and 1% on all others. Other credit cards with cash back offers give 5% rebates on expenditures for auto repair, apparel, home improvement stores, and more. You decide which one would be the best for you by looking at your past bills. Then pick one that is best suited for making you the most money. I reccommend the first listed here because we tend to spend more on food, gas and drugs than on car repairs or home improvement.

A 5% cash back is equivalent to a 5% discount on your purchases. If you use a cash back credit card for most of your purchases and routine expenditures, that can turn into significant savings over the course of the year. To maximize earnings, many people like to get additional cards for family members, so that they receive cash back on all household expenditures.

In some cases, you wont earn the full cash back on your charges until after a certain amount of expenditures. Other cards put a limit on the maximum earnings you can accumulate in a year. The rewards on your cash back credit card may also expire after a certain number of months, or if you don't use your card for a period of time. Keep your Credit Card active even if your purchase is in a small amount. The way your earnings are redeemed also varies from card to card. Read the terms of the card you apply for and make a note of the most important points, so you can follow up as needed.

Cash back credit cards are most profitable if you pay your card balance in full every month. If you intend to keep a balance on your card, you might prefer instead to find one that offers a low interest rate. If that is possible.

The secret is to only use your credit card for purchas you would normally pay cash for or for purchases you would use your bank debit card for. Be sure to put this money aside so you will have it to make your monthly payment. This will add up to quite a bit over a period of 12 months.

Just think how much you could earn if you used your cash back card to make your car payment, pay your insurance, pay your mortgage, pay for your weekly groceries, and other bills that you normally write a check for. At the end of 12 months you could have more than $2,000 to spend for Christmas or take a vacation or start a savings account and make more money.

Try adding up your monthly bills then multiply it by .05 to see how much you could be earning with your cash back credit cards. The amount may surprise you and this is FREE money...