Make money using a credit card? Sounds crazy, right? Well it's not. I've been doing it for years! Let me explain how my system works.
I use the Chase Freedom card which gives you 1% back on all purchases and 5% back in certain categories each quarter. For example this year the 5% categories are shown below:
You do have to activate the 5% each quarter, but they send you an email reminder with a link so it's super easy to do. I charge everything I can on my credit card...gas, groceries, eating out, even utility bills and car and house insurances, anything that will let me pay with a credit card without charging a fee. I WILL NOT PAY A FEE! Then I pay the credit card in full each payday.
I know some of you are thinking, how do I keep up with what I've spent and not go way over what I can afford to pay?
I'm going to explain the method to my madness in two simple words: Check Register! Yes, I know it sounds terribly old fashioned, but I still use a check register. Every time I use my credit card, I write it in my check register and subtract it from my checking account. I mark it as CC in the "type" column of the register. This way, I know if my checking balance according to my register is getting low, I need to stop using my credit card. Then when payday rolls around, I add up all the credit card purchases, compare to my online statement and pay the balance from my checking account. The other added bonus of doing my finances this way is my checking account balance always looks good!
My favorite feature of the Chase Freedom card is that you can redeem the points for cash back instead of having to get a gift card or using miles. I like to save my rewards up and redeem them for a special occasion such as a Birthday or Christmas shopping. My son will be a senior this next year so I'm currently saving my cash back for all the senior year expenses that I know are coming!
So which credit cards do you use to make money and how do they work for you?
