Credit cards are often looked down upon when seeing it from a financially sound standpoint. Many people that use credit cards often create a mountain of debt that they can barely manage, let alone get rid of entirely. However, the key word here is many people. Having a credit card doesn’t automatically make you an irresponsible spender.
A credit card doesn’t have to be a lethal financial weapon. If you are careless with your spending, buying more than you can afford, you’ll get in debt. If you buy things because it’s easy with a credit card, even if you can pay off your card balance at the end of the month, creates unnecessary spending and money down the drain.
One of the riskiest money making ideas that don’t require money to start (excluding borrowing for investing or other types of investing) is making money with a credit card. But if you use it carefully, you can make some extra cash from your credit card.
Cash Back Rewards
First, apply for a cash back rewards credit card. Do not apply for any card if you already have credit cards with debt or other debt. This is not for those who are currently trying to mend their finances. This is for those who have stable finances, are working toward financial goals with progress, and can use a credit card responsibly.
If you have average or poor credit, you probably won’t be approved for a cash back card, and therefore, you’re better off waiting until your credit is better. Assuming the requirements above are met, you can start with a card for average or low credit, a secured card if necessary, to build up your credit.
Make sure get a cash back card with maximum rewards. If you buy a lot of gas, use a card that gives more cash back for gas. If you buy things equally across the board, get a general cash back card.
Whenever you make a purchase, use your cash back card. Try not to max out your credit card every month, but if you can get a high limit, this would be hard anyway.
Finally, pay off your balance in full each month. If you don’t do this, you’ll pay interest and earn nothing. If you pay off your balance, you will get cash back, often in the form of a check when you reach a certain amount of rewards.
Don’t look at this as a way to make a lot of money. Consider it an easy way to add some cash back into your wallet and save money.