Everyone knows that credit cards can be a financial trap, but for the disciplined, they can also be a golden opportunity. If you have the fiscal discipline to make it happen and a steady income, you can actually get your credit cards to pay you, instead of the other way around.
Your credit card issuer may not be happy about these strategies, but your wallet surely will be. Credit card issuers make some pretty enticing offers to gain new cardholders, but they also hope you will get sucked into the trap of interest payments and service charges. If you are financially savvy, you can turn the tables, scooping up the goodies without ever paying a penny of interest or charges. Here are some smart ways to get your credit cards to pay you.
Take Advantage of Bonus Offers
Credit card issuers are always looking for new customers, and they are often willing to pay to get them. There are some pretty enticing bonus offers out there, and some of them are worth hundreds of dollars.
These bonuses come in all forms, from statement credits that function like cash to airline miles to gift cards and merchandise. Just choose the bonus offer that most appeals to you, read the requirements carefully and sign up.
You will need excellent credit to qualify for some of these offers, and you will need to meet the spending levels and other requirements. If you are applying for more than one offer, it pays to record the requirements and track your progress. That way you can get the bonuses you have coming and make the most of your efforts.
Rack Up the Points with Discounted Gift Card Purchases
The advantages do not stop once you have satisfied the requirements of those bonus offers. If you have chosen a good card, you can rack up additional airline miles, points toward gift cards and even cash back.
Putting all your daily spending and payments on the plastic is one way to rack up the miles and bonus points, but you can go even further. If u you have a few favorite stores, look for sites that sell discounted gift cards to those retailers, then use your bonus-laden credit card to pay for those cards.
This strategy pays you in two different ways. First of all, you get a discount, sometimes a significant one, on the gift cards you buy. That allows you to get a price reduction every time you buy from that retailer, reducing your out-of-pocket costs and saving you lots of cash.
Paying for those discounted gift cards with credit cards that offer some sort of bonus gives you a second advantage. Every dollar you spend on those discounted gift cards gets you that much closer to your next bonus, so you can get your credit card to pay you back again.
For the unwary, credit cards can be a dangerous trap. For the fiscally savvy and disciplined, those same credit cards can be powerful tools. As with any tool, it is all in how you use it. The tips above can help you get your credit cards to pay you back, so you can enjoy all the advantages with none of the costly drawbacks.