How to Make Money by Using Credit Cards

With the economy in a slump, many people are looking for ways to stretch their dollars and earn extra income. Believe it or not, using credit cards is one way to make money during the recession. Follow these steps and a check will be mailed to you in no time at all!

Difficulty: Easy

Instructions

Things You'll Need:

• Credit Card with a Cash Back Rewards Program

1. RESEARCH CREDIT CARDS. Do not apply for any until you have narrowed down your choices to the top 3. Applying for too many credit cards can negatively affect your credit score. Look for companies that offer at least a 3% cash back rewards program.

2. APPLY FOR THE CREDIT CARD. Once you have been approved, read over the fine print. Some companies will only give you the cash back award on your top 3 purchase categories. Plan to use the card only for those categories if this is the case. Usually, you can earn cash back on categories such as Groceries, Gas and Dining and Entertainment.

3. USE THE CREDIT CARD. Now that you have your credit card- use it! But beware- do not put more on the card than you can pay back in one month. This defeats the purpose of making money by using a credit card, because carrying a balance racks up the interest rate. Set a budget for your assigned categories and stick with it.

4. PAY YOUR STATEMENT IN FULL. This prevents any incurring debt and increased finance charges. Paying in full also ensures you don't fall into credit card debt. Some companies require you to reach a certain amount of cash back before they will send you a check. Wait for your account to reach the threshold and the credit card company will send you a check or you can request one to be sent.

Tips & Warnings

• Always pay your credit card bill in full to avoid getting into debt.

[christye]

on 7/13/2009 Great tips!

[vintage]

on 7/8/2009 good article, good tips 5*