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Making Money with Credit Cards

May 13th, 2007

* * * * 4 Stars

The very idea of potentially making money from a credit card can, from time to time, seem incredibly far-fetched. However, it is something that is very possible, but requires you to have a bit of discipline. In essence, you are going to be taking money from the credit card company and then reinvesting it so that you can make a larger return later on. However, there is discipline required and if you aren’t strict on yourself, you’ll lose out on this golden opportunity.

Chances are, you have received credit card deals in the mail which is their way to offer you these fantastic ‘teasing’ deals that will entice you and provoke you to sign up for the credit card. Most likely, they are saying that you will get interest free credit for a period of time or that there is no annual fee. Regardless of what they are offering, you are looking for very specific types of credit cards and because of that, you need to go out and invest in a shredder.

You want to get a shredder because of the risk of identity theft. Thieves will steal the paperwork to sign up for the credit card, change the address to theirs, but keep your name and voila, they are purchasing through your name. Chances are, they won’t pay it back, and because of that, your credit goes down the drain. The advised shredder is one that cuts the pieces of paper up really small so that it can’t possibly be pieced back together. Once you have this, now we can begin to make money.

Get rid of all the offers that don’t have a zero percent interest rate for whatever period of time. Just shred them…You need interest free. The next step is to go through the interest free credit and find the ones that have cash advance fees. To make their money, credit card companies will charge something along the lines of three percent on the cash advance, something you’ll need to make your money. Shred those as well.

Now that you have a couple of offers that are good (and chances are, there won’t be many that are good), you can now start to make money. Take the money from those offers and place it into a separate money market account. These tend to generate over 5% interest on the money in them, so if you put a lot in, you can imagine the amount you’ll take out. Now, the way that you’re going to make money is to not let the companies fool you.

The way they make money is they hope on their interest free credit cards that you’re going to forget to pay your monthly bill. Chances are, this monthly bill is only about 1% of the total amount borrowed. You can’t to forget it. If you do, chances are, you’ll be stuck paying an 18-24% interest rate. Who wants to pay that? If you pay each month, though, the amount that they suggest, you won’t have any interest tacked on to it which, naturally, is fantastic.

So, where does the money come from? Pay however much they suggest each month from that account that you set up. Pay it. And, about a week before the end of that interest free period of time, take the remaining sum that you owe from the account and send it to the company. Voila, you have now paid off the company. However, there is more good news for you…Since that money has been accruing interest, you now have a nice chunk of change to spend.

Now, it doesn’t like much if you’re dealing with a thousand bucks credit. But, what if the credit card company gave you a thirty five thousand dollar credit? Sure, you’ll have to pay it all back, but you’re paying it back with the money that you borrowed from them and at the same time, you’re making interest on the money that they loaned you. What is better than making money using the money from the credit card company? One of the better tricks in life.