How and how much you can earn on credit cards
Credit cards have long entered the life of a modern person, quickly becoming a convenient alternative to conventional consumer loans. Credit card today is considered one of the most popular banking products. Banks offer their customers credit cards on a wide variety of terms. Some financial organizations even arrange home delivery of their products.
The days when a credit card was only an expendable item issued at high interest rates are already behind us. Now you can not only use borrowed funds for free, but also learn how to make money on bank cards.
The amount of earnings will depend on the cardholder himself, someone earns on everyday expenses, and someone comes up with special schemes for generating income.
How to make money on a credit card with a grace period? Many people believe that a credit card is a real evil, but if you look more closely, then you can make great money on this product if you act correctly.
How to make money on credit cards without investing?
Any bank earns much more on credit cards than on other financial products. However, if the client is competent and understands some nuances, uses a special strategy, he knows how to make money on credit cards for himself.
The bank, offering its customers credit card processing, earns money on the following::
- payment for annual maintenance.The issue of the card costs a certain amount of money, so even if the client does not use the card, the bank receives its own reward.The service cost is usually higher than one thousand rubles.;
- commission for withdrawing cash from ATMs, which can be in the form of a fixed amount, a percentage of the amount withdrawn, or a combined option is provided;
- sms notifications.For many clients, $ 2 per month is not a big expense, but it will be $ 24 per year.;
- interest on the loan, penalties for late payment on the loan.
Therefore, before applying for a credit card, you should carefully evaluate all the pros and cons, possibly refuse notifications and choose the most favorable offers from banks.
Credit Card Savings Options
As a rule, we choose a credit card either as a reserve, or use the funds to get through to paycheck. These approaches are not safe, because they allow the bank to earn money on us.
How to make money on a credit card to us? First of all, it is necessary to choose it correctly, taking into account:
- service cost.Choose minimum rates;
- disable SMS notifications.Initially, you may think that the amount per month for notifications is insignificant, but in the long run it will be quite significant expenses.You can track all your expenses and movements on the map in the mobile app;
- interest-free grace period;
- cashback, it can be different, it is better to choose the option when the refund is made not with bonuses, but with real money.
Bank rates provide for various bonus programs. The terms of such offers may vary, but the essence will be the same – when paying for goods or services by bank transfer, a certain percentage of the amount spent is returned to your account. In some banks, this percentage is 1-3, and somewhere even 10. For some cards, the bonus is awarded for all purchases, while for others-only for certain categories of services.
Before choosing a card, you need to think through everything and choose for yourself the most optimal ratio of all criteria, nuances and credit conditions. It is also recommended to take into account possible tricks of banks. Many of them offer free annual maintenance, however, starting from the second year, the cost of bank services will be quite high, as well as huge fines for delay, etc. Therefore, you should carefully study the loan agreement and all its terms and conditions.
How to make money on credit cards with a grace period?
Most credit institutions offer a grace period of 55 days, some more, some less. At this time, the client can use the borrowed funds completely free of charge. However, there are also pitfalls here – the settlement date is different for all banks.
For example, the bank has a billing date of the 15th day of each month and a grace period of 55 days. If you purchase something on the 25th of a given month, then your grace period is reduced by 10 days, meaning you only have 45 days left to use the card for free. And if you purchased something on the 10th of the following month, then your grace period has almost halved. This must be taken into account.
How to make money with credit cards?
Many people believe that earning money on a credit card is a myth. At the same time, most bank clients manage to earn money in this case:
- choose a card with a minimum annual maintenance fee, and disable any notifications and other paid services that almost all banks impose.When choosing, study the conditions of different banks, the proposed grace period and interest rates;
- choose the most profitable bank deposits.It is important not only the percentage, but also that the deposit was with the possibility of early withdrawal and replenishment of the account.Choose deposits from reliable banks;
- when we receive our salary, we put it on the deposit, leaving the money to be stored there at an interest rate;
- we use a credit card all this time, taking into account the grace period.We do not withdraw cash if a percentage is provided for it;
- the next salary is to pay off the debt on the credit card.If there is something left, we put it on a debit card or on a deposit.
This algorithm has recently been particularly popular, as the Central Bank regularly reduces interest rates on banking products, and a good return on deposits is unrealistic.
A more “advanced” version of how to make money on a credit card is a way to make a profit on several credit cards. The algorithm of action in this case will be as follows:
- if you have two credit cards, you can choose the one with the longer grace period;
- on the very first day of this period, perform a card operation;
- for the next month on the first day of the billing period you make a transaction on another card and continue to use only this card;
- by the end of the second month, close the debt on the first card;
- start using only the first card for all payments;
- by the end of the third month, you are closing your second credit card debt;
- you start using only the second credit card again.
In this case, it is important not to change the frequency of credit cards, returning the amount spent on time. Otherwise, the algorithm will not work, and you will have to pay large interest rates.
In any case, do not forget, if you decide to earn money on credit cards, that any credit card is self-discipline, you will have to constantly monitor your finances, expenses, pay off debts in a timely manner, etc. Therefore, this method of earning money is not suitable for everyone.
In what situation do credit card earning schemes work? If the customer frequently uses a credit card or performs various online transactions, it is calculated for purchases with increased cashback. As a rule, the largest refunds are made for air travel, car rental abroad, purchases in large retail chains, etc.
If you use a credit card, you can try to earn money on a credit card using this algorithm. But you should not get a credit card specifically for earning money.
Some banking organizations, in order to attract more customers, offer their borrowers to keep their own funds in the credit account, on which interest is accrued. In other words, you have a comprehensive product that involves using a credit card, debit card, and deposit at the same time. This is not only convenient, since all your funds will be contained in one product, but also profitable.
How to spend money in the bank and how much can you earn on a credit card?
The amount of income from the options described above, how to make money on bank cards, depends on the activity of the credit card holder. Some people spend $ 300 a month, while others spend $ 1,000. If, for example, you spend about $ 400 a month on your life, making all purchases and payments only by credit card, you can earn cashback from $ 4. During the grace period, your funds are held on a debit card at six percent per annum, respectively, you can receive up to $ 2 per month. As a result, from these 400 you can get an income of $ 6, which for a year will amount to 72.
This is an approximate calculation if you spend $ 400 a month, so if you spend more, you can earn more.
Many people are now interested in how to make money on Yandex. Money cards by investing in more profitable tools. You can try a brokerage account, but in this case you will have to pay a commission for transferring funds to an individual’s account. This option is not very profitable.
Credit funds should not be used for investment, these are very big risks, no matter how high the profitability of products is.