Making Money with a Credit Card

Credit card companies love to have people use their cards with the best of intentions-paying it off until the end of the month-mostly because the pay-off seldom happens. They will lure you in with the offer of points back for gift cards, payments on the account or cash. If you can be wise and in control-you can win the game.

This is what I do-each quarter, my card offers a 5% rebate on anything I buy at certain stores. One quarter, it was my grocery store. During that quarter, I paid for all of my groceries with my card, but, I only spent what I had budgeted for groceries each time.  As soon as it registered on my card, I paid for it. I use the card for anything that the rebate is for IF that item was already in my budget. I refuse to buy things just to get the rebate; there is no winning when you do that!

I also use my card for anything that is expensive. For example, travel expenses for a trip can reach a couple thousand dollars. I save the money before the trip and then pay off the card from time to time, even while we are traveling. When I need to buy something big for work that I will be reimbursed for, I pay for it with my credit card and turn in the receipt right away. I only do this because I know how fast I will be reimbursed.

To make it easy, think of it this way-the key way to make money with your credit card is to have a budget-a budget you follow. Already having the money makes it easy to pay it off. Don't wait for the end of the month statement. Pay it off as you go. I did that this last year and made an extra $100 for our vacation savings.

Using my credit card wisely is just another way to live daily on less!


Photo credits: Three Credit Cards by Petr Kratochvil  
                             Money by stephenbayer