It’s possible to never pay one red cent of interest on your credit cards.
Now I know you might think this is hard to believe, but you can even make money off your credit card company. (I hear you laughing “Yeah, right”)
Hard to believe?
Here’s how…
Credit card companies charge a fee to merchants every time you use your card – usually between 2-3%. That’s how the credit card company makes money.
Some credit card companies offer cash back reward cards. One card I’d recommend looking into is the Discover More card. Another is the Chase Freedom rewards card.
These cards actually give you “cash back” – almost like a mini savings account within your credit card. This happens when you make certain types of purchases or a percentage is credited to your cash back account based on the total charges you have in a year.
One example is the Discover More card, which lets you earn 5% cash back on gas, groceries, hotels, restaurants, and more. For instance: Jan 1-March 1, the offer might be 5% cash back on gas restaurants. Any purchases you make at gas stations those months will earn you 5% cash back (up to a certain limit) that will add to your cash back bonus account. Once you reach $50 of cash back bonus, you can use it towards paying your bill. (Note: You can also use your cash back rewards towards charitable giving and/or for gift cards to online and offline retailers and restauarants)
How to Profit Off Credit Card Companies in 3 Easy Steps:
Step 1. Charge purchases that you normally would make like gas, groceries, etc.
Step 2. Have enough cash in your bank account that will fully pay off your credit card when the bill comes due every month. This is the key to making this work.
Now many people have heard of Steps 1 and 2 being smart. But you can actually make money off your credit card company by building up cash back bonus money…
Step 3. Use your cash back bonus as a credit on your credit card statement.
Conclusion
If you do this correctly, you are not spending any more money than you normally would otherwise, and are leveraging the credit card companies cash back incentives to make more money. Now that’s smart leverage.
