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Use credit cards -- and make money

Posted May 07 2008, 03:07 PM by Karen Datko
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This tip from reader "kara17" is a good one, but only if you have unwavering discipline:

We put absolutely everything on credit cards with cashback rewards. (Warning: This obviously doesn't work if you don't pay your full balance every month. If you're paying 15% interest, a 5% cashback reward isn't doing much good.) We both have cards (from different companies -- one from Discover and one from Citi) with 5% cash back on gas, 3% cash back on groceries, and 1% cash back on all other purchases. There is a limit on how much you can get 5% cash back on (I think ours is $2,000 a year), so once we hit that limit, we switch to using the other card we have. These percentages may not seem high, but if you put everything on the cards, the cashback savings really add up.

She and her fiance just got a check for $360 from one card, and have $600 of rewards accumulated on another.

In a related tip, they also get cash back on purchases by using Ebates.

And yet another bonus tip from this smart shopper (one we're about to try because our satellite TV bill has gone up again): "If you must have certain services (i.e., cable, Internet, cell phones, etc.), call your provider and try to get a better deal. It's always cheaper for a company to keep a current customer than try to attract a new customer. ... Research current deals for new customers, then call the company and try to get that deal."

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Comments

 

ha cable and cell don't give you a better deal just more services for more money not more services for less money don't waste your effort.

jaded (Posted 05.07.08 3:25 PM)

Amen to  cash back on credit cards.  You absolutely must pay it off in full and on time every month.  Don't worry about the credit card people - they make a profit from the merchants who accept your card.  We usually get 200.00 - 300.00 back every year for using our credit union-issued Visa for most purchases.  That cash is far more valuable to us than airline miles or the cheesey, overpriced junk  in the "points" system. Less" jumping through hoops" as well.  It appears as a credit on our August statement every year.   Visa has been very helpful to us  in the few instances when we've  had to dispute a merchants' goods or services.  

mary (Posted 05.07.08 3:44 PM)

I AM ON A FIXED INCOME, I AM TRYING TO GET OUT OF DEBT ON MY CREDIT CARDS EVEN THOUGH I HAVE A LOW APR 6.99 I TRY AND MAKE TWO PAYMENTS ON THEM EA. EVERY MO. ITS HARD BUT THE INTERNET GOT ME HOOKED ON USING MY CREDIT CARDS FOR THINGS I THOUGHT I NEEDED, SHAME ON ME. ALL I CAN REALLY HANDLE IS 500.00 ON ONE CR. CARD AND WAIT TIL IT IS PAID OFF, BEFORE I CHARGE OTHER THINGS. ANY ADVICE WOULD BE WELCOME. msr_april@live.com

mary chandler (Posted 05.07.08 3:49 PM)

I know a lot of families that are doing the same thing on credit cards now  and they love the rewards, there is also a cool tag game going on, you should look for clues on IMDB on the Iron Man boards. "EDGAR FROG"

Carina Forks (Posted 05.07.08 4:02 PM)

I use a card that gives me miles to travel. Last year I went to Europe for two weeks on vacation, the best part was that my round ticket was just $60 dollars  and probably was worth it $1000 !!!

I put almost everything on the card and pay it everything by the end of the month. I have accumulated enough miles to get another ticket, I guess the money will be also ok but I rather travel.

Isela (Posted 05.07.08 11:34 PM)

Another good one is AmEx Blue Cash. It's a good card to have if you put more than $6500 on it annually. We use it for all of our spending - groceries, gas, dining out, etc. and pay it off each month. Last year we got back $300 and this year is the first year we've put the gas on it, so it'll be even more. We've considered putting all of our utilities on it as well, but I prefer being able to use it to track spending.

Lissa (Posted 05.08.08 10:06 AM)

Last year we "earned" about $700.00 cash back on one card and a free ticket to Europe on another card.  So far it's free money and I am just waiting for the Government to levy some kind of tax on it.

Rose (Posted 05.15.08 8:13 AM)

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