Money Matters » How to use Credit Cards to Save & Earn money

How to use Credit Cards to Save & Earn money

fb iconpinterest iconpinterest iconlinkedin iconbuffer icon

There tends to be a negative stigma attached to credit cards. Most people associate them with debt and costly fees, but few people know that you can actually earn money by using credit cards, Learn how . . .

Many credit card companies offer rewards for using their cards. One such card is Discover’s IT card which offers customers 1% cash back on all purchases and up to 20% cash back on promotional purchases. Promotions change every four months. You can earn money by using your card to purchase items that you would already have purchased, like groceries and gas.

Discover allows customers to redeem cash back in $50 increments. Customers can get their rewards as a check, apply the rewards to their bill, or redeem them for partner gift cards.

In order to benefit from credit card reward programs, cardholders must pay their bill in full each month and make their payments on time. That’s why it’s important to only charge items that you would have already purchased with your cash.

It’s also a good habit to pay off your balance each week to keep balances down and ensure that payments are made on time. Otherwise, it might be tempting to view the cash in your bank account as being available when it’s really already been accounted for.

Some credit cards even come with theft and damage protection which can lead to big savings. If an item purchased with the credit card is lost, stolen, or damaged the credit card company will refund the purchase if the loss occurred within so many days of the purchase.

This insurance also saves customers money when they rent vehicles using their card because vehicle damages are covered under the credit card policy. This eliminates the need to purchase additional automobile insurance.

Credit card holders can maximize their saving by purchasing gift cards during promotional periods. For example, a credit card company might offer 5% cash back on all home improvement stores from May to August.

You can buy gift cards at home improvements stores during the promotional period and use them at any time of the year all while still getting the maximum reward for purchases. I often use my credit card to stock up on movie passes and gas cards during promotional periods. Since I use gas and go to the movies regularly it’s like I’m being rewarded for paying for these commodities ahead of time.

Some credit card companies also offer their customers cash back rewards on referrals. The Discover Card offers its members $50 in cash back for each person that they refer to Discover, assuming that the person qualifies for the card, of course, $50 per referral adds up quickly.

What credit card rewards have you received?

More in Money Matters

Leave a Comment