A credit card is something that many people have but most tend not to make money out of them. In fact more people than not, actually end up paying out on their credit card because they do not pay off the outstanding balance when it is due, just the minimum amount and therefore have to pay interest. Some even do not pay anything and have charges on top of that. However, many people will pay off the full balance and never have to pay these charges and it is a great way to get some free credit. However, there are ways that you can use a credit card to make even more money.
Cash Back Cards
A cash back credit card will give you back a small percentage of what you spend. This means that you will get a credit to your account the following month depending on how much you have spent the month before. This is great for those that pay everything back each month and gain the money from cash back. It is wise though to make sure that you are not tempted to spend more than you were intending to, just because you get cashback. The cashback percentage is very small. However, if you pay for everything you need on the credit card then you make back the best possible cashback. However, do beware of the interest. If you cannot make the repayment one month then you will find that the interest charged can be very much higher than other credit cards and you could get into a lot of debt.
Interest Free Cards
There are a few companies that offer interest free cards and these can be a great opportunity to make some money if you are careful. Firstly, make sure that you set up a direct debit to pay off the minimum each month and not when the interest free period ends. You will need to make sure that you pay the card back in full just before this date. Then put everything that you buy on this card. So all your fuel, groceries, bills and things like that, anything that you would have bought anyway should be paid for using the credit card. However, it Is very important to put the money aside to pay off the card. Pop it into a savings account or somewhere else where you can earn interest and it will then be ready to use when you need to pay off the card and you will have gained that bit of interest. This is most worth trying when interest rates are high as you can again more, but worth a go at any time if you want some extra money.
As an alternative to a cashback card you may find a reward card more useful. These work in a similar way to a cashback card but you will get a reward for spending money on the card. These could be loyalty points for a certain shop or company, air miles or other things. These can be good if you gain something which will be useful to you.