First of all, let me mention that I am from the UK, so if you are from another country, there may be a different system. Here, if you pay off your spending on your card within 50 days, you are not charged any interest. This means that paying monthly would suffice. I have started using a card with which you gain rewards to pay for everything that I buy, and I will then pay it back ASAP. The rewards card that I have offers one penny for every two pounds that you spend, and then sends you vouchers every four months which you can exchange into different things that are worth more. Considering the average household spending a couple of thousand pounds per month, it is easy to see just how quickly these things can add up. For this reason, I would recommend it to anybody. Does anybody else use their reward linked credit card for day to day spending? I am very good with money, meaning that I absolutely know that there is no way that I would ever go above my credit limit. I write everything down, and pay things off as soon as I can. I never buy anything if I don't have enough money in the bank to pay it back with.
You have a very impressive discipline when it comes to buying. I have not tried to cash in the rewards from my credit cards eve. In fact, I do not really think they matter until I saw your post. Before, they are just numbers and another gimmick from the credit card. From now on, I will follow this very practical tip.
My mom does the same with her credit cards. Everytime we go buy something from the mall, she always use her credit cards to pay for the things that we bought even if she has cash with her. She told me that she's doing it for the points that the credit card company gives her everytime she uses her credit card.
Provided that you absolutely stick to your plan you should be OK. The plan is great, and if you can afford it you should always be paying your credit card in full, the interest is just too high, not to mention penalties if you are late. And this is sustainable because the credit card company is getting paid by the merchants more than they pay you, so everybody wins here. The other thing to be aware of though is that sometimes smaller merchants will give you a discount if you pay with cash. That will easily win over your credit card savings, and you should always try to get that first if possible by asking. And mention that you have this plan so you'll pay by credit card if they don't agree.
I put everything I can on my credit card and pay it off right away. I have a credit card which also offers cash back for purchases at stores, gas stations and restaurants and I have to say I've earned a lot from using it. I used to just use cash or my debit card but I wasn't earning anything in return. I found if I pay it off right after I use it it works out to be the same.
Yes, if you can use your credit card to benefit you and not the credit card companies this is simply the right thing to do. Sometimes it is beneficial to use these cards, but if you can't pay them off every month it is usually counter productive. I have a card that doesn't cost me anything and rewards me, so I like it alot.
I agree, if you can rigidly stick to this and be disciplined, having a credit card can be beneficial. I had one for years in the UK, but for some reason, could never stay on top of it. I had the money to settle in full every month, but for some reason, i'd end up letting the balance pile up and then paying it off in huge chunks, which of course was just stupid. I ultimately cut it up and swore off credit cards.
Yes that can do it . It's hard but extremely important to stay on top with it. I make it my first priority to pay off when I get paid. I look as it if I am going to spend $50 on groceries I might as well put it on my card then pay if right off as opposed to just using my debit card or cash.
This is pretty cool. I have never used credit cards before so I don't even have one. I do have a debit card and for now that will be fine. Maybe when I start making more money I might have a credit card of my own if the rewards are worth it. Though it does make sense that in order for these credit card companies to offer such rewards is if they are paying you less than what they earn off your transactions with the credit cards. If you know you can stay on top of those bills then good for you.
Well done, KimmyMarkks It is doable, if you're as disciplined as you are. I think the mistake I used to make was to purchase highly priced items, so that at the end of the month I'd only be bale to pay off maybe a third of the that figure. I would then take another 2 months to pay it off. I guess in a sense I was sensible in that I would stop using my credit card until I finished paying whatever I owed before using it again. Maybe one day I'll get another one and just learn to use it more wisely.
I am aware of a credit card being in credit that can make you lots of money but not sure about it in any other way, I say if you cant buy something cash, then you shouldn't buy!
Well that's a good way to use credit cards. Still, the "money" you earn from those points are not quite as much as the money you earn when you just let your savings sleep in the bank (either as a regular savings account or as a time deposit). I do concur that only people who can afford to pay the bills and mange their budget well should own a credit card. Otherwise, having one would be nothing more but an additional financial burden.
My Citibank card has many rewards. For newcomers, there's a half dozen Krispy Kreme donuts for free when you buy half a dozen - that is a dozen donuts but you pay only for 6. Every day, I get a text from that credit card with promo. It seems to me that they never run out of promo, from boutique shops to airline and on to hotels. But spending thru credit card and earning, I don't see it that way.
Yes, this is exactly the type of card that I used when I first posted this thread (three years ago, wow) and is the one that I still use today. I have lost count of the amount of money that I have now earned from my cards, but I know that it is quite an impressive amount. I still haven't paid a single penny of interest on my card, yet I always know that I have enough money on it for any emergencies, and I will always get a bonus from the card every couple of months, which is very nice indeed.
that sounds good and I have a card that gives me rewards in cash if I use it in certain places but they charge me a fee every month for the reward program and if I calculate it per annum it costs what I get back so I would be better off taking this amount and putting it into a savings account rather.
There are several ways to use credit cards to earn money: 1. Use your credit card to finance the inventory of a small grocery store selling fast moving household items. You can take advantage of the 50-day float and buy the stocks as soon as the next day after cutoff and pay for your purchases much later when all or most of the items have been sold. 2. Avail of your card's loan facility or zero installment privileges to start your own small scale utility vehicle business. The vehicle's earnings will be used to pay off the monthly installments while the excess will go to your savings or disposable income. At the end of the payment period, you'll have a utility vehicle, full access to your earnings, and will be in a position to save up for expansion. 3. Buy discounted appliances at 0% and sell them on installment with a reasonable profit to people you trust and have the capacity to pay on a monthly basis.
Well, credit cards are good for starting out your business. You can use the card to buy items for your business. The more you use your card with the items you sell or services you offer off your business the more you earn points and rebates. If you just use the CC for your own personal use, the compounding interest will work against you unlike you using it for money making purposes.
If they are giving money - cash withdrawal limit say 50 K Research and invest in equity stocks for short term may be trade for a 2-3 weeks time frame which roughly gives a 5% return per month at max. Now multiply this by 12 you get a phenomenal 60% return. CC generally charges roughly around 20% per annum and net net you still have money in hand. !! Disclaimer : You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. You agree to not make actual stock trades based on comments, nor on any techniques presented nor discussed or any other form of information presentation. All information is for educational and informational use only.
