Get a Day-to-Day Credit Card and Make Money!
Since I recently bought this blog, I keep going back in time through the GLBL history and read its previous articles. Larry has a great grasp on his personal finances yet we have a different perception of the very same topic. One article caught my attention: No Credit Cards; Here’s why. In this post, Larry was explaining why he wasn’t even carrying a credit card anymore. These pieces of plastic often have the strongest voice suggesting:
“You can buy it now, it’s on sale and you will save money!”
“Buy it now and you will have another 30 days to pay it back”
I can’t really argue his point as we have all encountered a moment in our lives where we really wanted something and couldn’t afford it. This is how credit cards can burn a hole your wallet and allow you to spend in a heartbeat. You sign the credit card receipt before you even realize that the item you wanted is now yours hahaha”¦ while the evil debt is growing out of control!
However, I am a big believer of using systems to your advantage. Instead of playing the banks’ games and pay ridiculously high interest rates on their credit cards, I have decided to keep banks’ board game but set the rules differently.
I am looking for a reward credit card with the highest payback and use it everyday!
I actually use my credit card for all daily expenses that would normally be paid with cash or my debit card. No extra, no “rewarding myself because I deserve it”, only normal daily expenses such as gas, groceries, phone and internet bills.
If you have trouble with your credit cards’ powerful mind control abilities, here are 2 quick tricks:
If you want to take advantage of the banks instead of working for them, try these 2 things to make sure you don’t pay a dime in interest nor increase your level of spending due to your credit cards:
– Set an automatic payment through your credit card
There are tons of bills you can set with automatic payments. Since you have to pay for your phone, cable and internet anyways, do it through your credit card in order to earn points or cash rewards.
– Take your credit card out only for specific purchases
There are 2 absolutes in your spending: you need to eat and pay for transportation. So why not leave your credit card in the drawer and take it with you only when you go to the pumps for gas or the grocery store, buy your bus pass/tickets at the same time!).
Combining a few utility bills, grocery and transportation costs, you will most likely spend about $1,250 per month. This is $15,000 worth of points on your credit cards in one year with stuff that you had to buy anyways. This is a free rebate thanks to your credit card!
I personally use my credit card for any purchase (from my $1 coffee to my cash deposit on a new car). I ensure that I pay my bills in full every month. If you are not yet comfortable enough managing your credit cards, you can use my 2 tricks and avoid making unnecessary purchases.
With this technique, you will learn to tame the beast and avoid getting burned by high interest rates on your credit cards. The best thing is to select a card with rewards that you will use. Some give gas cash back, others have points that enable you to buy anything in a catalogue or airplane tickets. I have listed a few great credit cards with rewards:
Credit cards with reward points and (NO ANNUAL FEE!) that I like best:
Discover® More(SM) Card – Wildlife Collection
Through the reward program, cardholders can earn a 5% Cashback Bonus® in categories such as travel, gas, restaurants, movies, and more. Cardholders also earn up to 1% for general purchases and .25% for purchases made at select warehouse clubs and discount stores.
Miles by Discover® Card
Through the rewards program, cardholders earn double miles on up to $3,000 in travel and restaurant purchases and one mile for every dollar spent on general purchases. Earned miles can be redeemed for airfare or reduced airfare on most major U.S.-based airlines with no blackout dates. Miles can also be redeemed for gift cards from 50 brand-name partners or cash.
Discover® More(SM) Card – Monogram
The reward program allows cardholders to earn a 5% Cashback Bonus® in categories such as travel, gas, restaurants, movies, and more. In addition, cardholders can automatically earn up to a 1% Cashback Bonus® on all other purchases.
IberiaBank Visa® Gold Cash Back Rewards Card
In order to get other cash reward credit cards click here.
image source: Andres Rueda