How to Make Money from Your Cash Back Credit Card

By Leni Parrish on August 21, 2009

Can you really make money by using a cash back credit card?  Technically, you can. By using your cash back card for spending, you earn points that can be exchanged for cash.  If that sounds great, then you might be interested to know how you can maximize your chances of earning money by using a cash back credit card.  Here are the ways:

Make it double.  Most credit cards with cash back rewards offer one point per dollar spent, but certain purchases can earn you double points or even a few more extra points per dollar spent on your card.  How?  You can do so by making special purchases from an affiliate shop or merchant. Most of the time, the list of affiliated establishes can be found in the fine print. Read through them and learn how you can double those points.

Charge everything.  It does not matter whether it is a large purchase or just a small item.  If you can charge it to your card, then do it.  The important thing to remember about this strategy is to use your cash to pay off your charges immediately.  As much as possible, pay it off on the same day you made the purchase to avoid getting stuck in bad credit.

Charge your utility bills.   Utility bills that you need to pay in cash each month are best charged to your card.  Again, be sure to use your cash to pay off your credit card charges immediately.  By paying your utility bills (telephone, internet, cable, electricity, etc.) with your card, you can collect more points each month without having to spend more than what you need.

Reimburse card purchases.  If you need to make a purchase or pay a bill for your company, why not charge it to your credit card?  When you get the reimbursement, you can use it to pay off your balances.  Just make sure to receive the reimbursement on time before your credit card due date.

Don’t pay extra fees.  Extra fees that can be avoided are interest rate charges, late fees, over-the-limit charges and other penalty charges.  Why pay them when you can choose not to?  Avoid these fees by submitting your payments on time.  Remember that credit cards with rewards often impose higher penalty charges.  The rules are often more strict than credit cards without rewards.  You may even get disqualified for redeeming your rewards if you do not follow the terms of your contract.

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