How to make money using your credit card

Jenkins, Duncan. This investing platform automatically invests your spare change from everyday purchases. For example, Capital One Platinum Mastercard offers price protection benefits for 60 days from the date of purchase.

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Most advice about credit cards warns you about the dangersthe risk of getting into debt, and the potential for paying hundreds of dollars in interest and fees. While there’s some truth to this, the whole truth is that it depends on how to use your credit card. You can make big mistakes, rack up a lot of debt, and ruin your credit. You also can use your credit card responsibly, learn the rules, build your credit, and save and earn money. And you can do it without getting into debt as long as you follow two basic rules: charge only what you can afford and pay your balance in full every how to make money using your credit card. If you’re currently carrying a balance on a credit card with a high interest rate, you can save hundreds of dollars by transferring that balance to a credit card with a lower interest rate. Taking advantage of a 0 percent APR balance transfer offer will save you even more money as you can avoid paying interest for up to 21 months depending on the credit card you choose.

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The premise that you can make money by borrowing money is questionable and high risk as credit card companies are not in the business of making other people money. Furthermore, applying for a significant number of credit cards can have an adverse effect upon credit rating. However, with savvy financial planning there are ways to work the system in your favor. Cashing in on bonuses, taking advantage of low interest rates, and keeping an eye out for special sign up deals can result in you bringing in extra cash each year through responsible credit card use. This article was co-authored by Michael R. Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas.

3 Ways Credit Cards Can Make You Rich

Get Money With Discount and Cash-Back Credit Cards

And if possible, see if you can rack up rewards points by using your credit card to pay your rent. Four steps to successful arbitrage Following the steps of bloggers and others who have profited through credit card arbitrage, the key steps are simple:. Apply For a New Credit Card. Avoid extra costs by:. Each month for the next 23 months, you pay the minimum on your credit card. Being late on a single payment, even by a day, can also void the offer and reset the credit card account to a much higher interest rate. Bonus points if you just pay the minimum from your income and leave the money in the savings account how to make money using your credit card. To earn money on that type of card, you can engage in credit card arbitrage. By using both, you ensure you earn the most cash back possible. So before you sell, carefully read your credit card rewards’ terms and conditions thoroughly — and make sure the process is not illegal in your state. Business They each offer different cash back amounts and stores. Your funds are invested in a diversified portfolio to lower your risk, and you can link as many credit cards as you like. If you do choose the cash back card route, try to find cards that offer the highest cash. Most practitioners of arbitrage do not keep credit card advances outstanding for more than 12 months. To make money with credit cards, sometimes it pays to think outside the box. And if you are really disciplined, you can combine the last tip and this one to really make money with credit cards.