Earn Money on Credit Cards Rewards

It's not just about spending money. You can actually earn money using your credit cards! If you're not taking advantage of credit cards rewards, you should start doing so. But before you do, PLEASE make sure that you are not running up debt. It makes no sense to earn money on credit cards rewards while losing more in high interest payments.

If you are in debt and tired of paying high interest, it's time to work your way out. See How to Get Out of Debt on a Fast Track. But if you can pay off the full balance of your credit card bills each month, take advantage of the gifts that are out there.

How does it work?

First, you need to make sure that your credit card offers rewards. If not, apply for one that does. Those that offer rewards will tend to have higher interest rates, but if you pay off your monthly balances that's not a problem. Also, rewards cards may have an annual fee, so make sure you understand what you're getting. The annual fee should be a small price to pay compared to the savings earned through rewards.

As you shop for a new card, pay attention to sign-up bonuses. These are often quite advantageous.

Once you have your card, use it on everything! Typically for every dollar you spend you earn 1 point, and it's redeemed at one penny per point. That means if you've spent $1000, you've made $10. Over time, that adds up. Some cards offer more than 1 point per dollar spent. Travelers may look into cards that offer air mileage or hotel points. Other cards offer points for gas.

We get Walmart gift cards through our rewards. Some cards offer a choice of any gift cards or merchandise from their rewards selection. So you want to get a card that is suited to your needs.

Use the credit card for gas, groceries, even for small things like fast food or coffee. Remember, every time you use it you are earning points.

But again, make sure you pay off the balance in full each month. If you can't do this, STOP using your credit cards. Cut them up and throw them away.

Other considerations

Be a smart earner! A credit card is a tool that can be used for good or for evil. Don't let it do evil to you.

• Don't be impulsive. Don't go on a spending spree carelessly. Just use the card for what you need and what you can afford.
• Stick to one card or two at most. You don't need so many bills coming in at the end of the month. Focus on using just one card and building up your points faster, instead of spreading rewards out over several cards.
• Know when rewards points expire. Often the points just remain without any expiration. But you need to check and make sure. If there's an expiration date, you want to redeem them before you lose them.
• Weigh the rewards options. Some cards offer cash back instead of the rewards. But you probably get more points with the rewards.

Since credit card companies get so much money from their customers, why not get something back from them? Remember, please be responsible and don't wrack up unnecessary debt. 


Happy earning!

Spread the word! Please share: