Having a cash back credit card is an excellent way to make money while spending. However, aside from getting cash back rewards, several other ways are also present for card holders to earn when using cash back credit cards.
1. Having cash back credit cards as spending cards – If a person has determined the card which gives him or her value for the money he or she spends, that person should transfer all expenses to that card. People should use their card of choice to purchase something. If work-related reimbursable expenses are incurred by the card holder, payments should be made using that particular cash back card. Looking at it carefully, a cardholder will earn more rewards even when no actual expenditures are made.
2. The use of multiple cards – Some specialty cash back credit cards are able to give back more rewards when people use them to buy a specific product or service. An example of this is a credit card for gas purchases. Even when people have a primary card, they can make use of another one when buying gas. These grant people a higher rate of rewards for the purchase of gas. The regular credit cards should be used on the normal expenses. When possible, the card holder should check if there is a specialty card for the products or commodities that he or she uses.
3. Debt Transfer – When using this method, a cardholder should make sure that a 0% interest is put on balance transfers. If the card offers 0% interest on such services, he or she can transfer a certain amount of money to his or her savings account where it will earn interest. When paying for the transfer, the cardholder should also apply for another card with 0% balance transfers. This should be used when paying the first bill. This can be done with as many credit cards as possible. This seems like a debt is being accumulated, but the process actually skims it off. People will be safe as long as previous debts are paid with the next credit card. However, people should remember to actually pay for the bill on the last credit card with the money left in the savings account. Through this, cash back credit cards will earn interest from the money in the savings account and the cash back rewards gotten from all the money transfers.
The essentiall thing here is for people to pay their dues on time and in full. This makes sure that the interest is not accumulated.
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