Earn money from Credit Cards
This guide shows you how to make money from credit cards! I’ve used these techniques for quite some time now. The trick boils down to this: use your credit card for all purchases. Most credit cards have rewards, either through a percentage back or airline miles. Since you’re essentially borrowing money to make purchases, your money can stay in an interest-earning savings account until the bill is due. At this point, you pay off 100% of the bill and avoid any interest on the card itself.
I personally use a Citibank Dividend card. It gives 5% back on groceries and gas purchases, and 1% back on everything else. For restaurants, I use an American Express card from Costco. It gives 3% back in the form of a Costco gift certificate (which you can take to Costco and get cash if you like). It also gives 2% on travel-related purchases (plane tickets, car rentals), and 1% on all other purchases including gas from Costco, which is almost always the cheapest price in town.
To summarize, I’m earning 4% APY from EmigrantDirect Savings on money I borrow from credit cards. At the same time, the credit cards are paying me 1-5% on the money I borrow (as long as I pay it off every month — which I do). Another benefit is the fact that I’m building good credit at the same time!
November 26th, 2005 at 10:40 pm
[...] taking a cue from jeff (and here,) i picked up a credit card with cash-back rewards and intend to dump them into a newly-opened a savings account with emigrant direct. [...]