How to Profit From Your Credit Card

Discover Cash Back card

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What would you say if someone offered to pay you to shop? There is a way to use a credit card that can pay you up to 5 percent cash back. That's better than most savings accounts. Find out how by reading this article.

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Instructions

Difficulty: Easy

Things You’ll Need:

Computer
Good credit

Step1

Credit cards are a two-headed beast--you either love or hate them. If you have credit card debt, chances are you hate them. If you love them, use a cash back credit card! These credit cards give you up to a 5 percent cash back rebate just for using their card. Imagine getting 5 percent cash back on the total amount of money you spend for one year. It can amount to a pretty large sum.

Step2

Find a cash back credit card program that you like, and apply for the card. You can get your answer back in several minutes on some websites. However, you have to have a good credit rating to enjoy this perk, otherwise you might have to repair your credit before applying.

Chances are that if you have a credit card with Discover, American Express, or Capital One, you can simply switch your card to the cash back program from your current plan. This is also a great resource to transfer current credit card debt because several programs allow you to maintain 0% interest up to one year. Thus, you get full credit for you money and do not lose the value of your dollar by paying interest.

Ex) If you pay 10% interest, you only get $0.90 to each $1.00.

Step3

If you are approved, begin reading the fine print for the retailers or items that will gain you maximum returns. If Store A gives 5 percent and Store B gives you 2, the obvious answer is Store A.

Step4

If you are known as a big spender by your significant other, at least make the reply that you're returning some cash into their pocket.Example:

For Christmas 2007, you spent $1000 on gifts. You have the potential of earning $50 of that as a cash back incentive.