Making Money With Your Credit Card (Rather Than the Other Way Around!)
Are you getting tired of sending large amounts of money to the credit card companies in the form of finance charges? If so, then it is time for you to take control of your finances and to find ways to get the credit card company to pay you rather than you paying them for the use of your credit card.
There is no doubt that credit cards are convenient and, with our society becoming increasingly more dependent upon plastic, credit cards are almost a necessity. Unfortunately, many Brits have fallen into the trap of making purchases with their credit cards that they cannot afford. As a result, they are swimming in debt and forking their hard-earned cash right over to the credit card companies.
The first step toward getting the credit card companies to pay you is to get out of debt. This is going to take some work on your part, as well as the use of some strong willpower. To get out of credit card debt, you need to stop making new purchases on your card. Then, focus on paying off the balance. Just sending the minimum payment won’t do. In fact, if you only send in this much, it will take you years to get your credit card paid off.
Sit down and take a look at your finances. Determine how much extra money you have each month and send it to your credit card in order to get it paid off as quickly as possible.
Once you are finally out debt, work on creating a monthly budget that will prevent you from getting back into debt again. Then, apply for a rewards credit card if you don’t have one already. There are a number of different types of reward credit cards out there, so be sure to shop around carefully in order to find the one that you will get the most use out of. Some provide cash rewards, while others supply rewards in the form of airline miles, gift certificates, or goods.
Keep in mind that reward credit cards tend to have a higher interest rate than other credit cards. Since you will no longer be carrying a balance on your credit card, this is not a problem. This is why it is so important that you refrain from charging more than you can pay back at the end of the billing cycle.
Another factor to keep in mind when selecting your reward credit card is how the rewards are earned. With most cards, you will be put on some sort of points system or percentage system. In addition, most reward cards focus on certain types of purchases. For example, an airline miles reward card may reward you with more points when you make purchases related to travel. In addition, a business rewards credit card may give you more points when you purchase items at an office supply store. Be sure to select the rewards credit card that best suits your lifestyle and pays the highest rewards for the types of purchases you are already making.
After you get your rewards credit card, be sure to make all of your purchases each month with the card. Then, pay it off at the end of the month in order to avoid finance charges and to reap the rewards!