How To Use A Credit Card That Makes Money For You
Thursday, January 31, 2008
Most likely you have at least one credit card that you use
for the convenience of purchasing items without using cash.
Seems like money power using a plastic key.
Problem is, you have used that convenience too often
and when the bill comes you can't pay the balance,
you only pay the minimum. Continue with that scenario
will be financial devastation. But you're smart, kept up
with your credit card payments and you're close to
zero balance. You're looking to pay off the credit card
and remove it from your debt.
Bit wait! You can use your card to your advantage.
If you have good credit, you can make money using
your credit card. Credit card companies love to grant money |
to folks who have good credit. If you have good credit,
you may have noticed that you receive 'junk mail' stating
that you can cash a check from them and for a period
of time (6 or 7months in my case) they will offer
0% interest on this money.
Take the offer and cash their check and deposit it
into your checking account. Granted, doing this,
you receive a monthly bill for the transaction,
but your monthly payment has 0% interest
added to the payment.
Now here's the best part... before you cash the check,
sign up for a high interest earning savings account.
As of this writing I recommend three online
banking accounts: www.etrade.com,
www.ingdirect.com or www.emigrantdirect.com
Check which one gives you the highest interest
savings rate and sign up using your checking
account as the deposit vehicle.
Transfer the money you deposited into your
personal checking account from the money
you got from your credit card check to the
online savings account you chose.
The more money your credit card company
allows you to receive the more interest you'll
gain on your money (check to see what they
charge for a fee for doing this). After the
0% time is up you pay off the card loan from
your savings account, reaping what you have
gained from the interest earned in your savings account.
Chances are that if you have good credit at the end
of the term the credit card company (or another
credit card company) will allow you to pay off the
balance and continue with another 0% offer for
another 6-7 months.
Why do these companies do this?
Statistically they know most folks will use their
card for purchases whereby they make money.
So here's what you do... don't use the card at all
or if you do make a small purchase with the card
make sure that you don't go over your limit and
pay your minimum payment every month.
I have been doing this for a couple of years and
it's an easy way to receive passive interest income.
