Making Credit Cards Pay You

Credit cards can either be a good thing or a bad thing. What it takes to make it a good thing depends on how the individual handles their money. In fact, credit cards make up 26.2% of the total consumer debt in the United States which is over $1 trillion. This is a growing issue because not enough people are being educated on how to handle credit cards and purchases with them. Going around the shopping mall buying as much as the credit limit has to offer is a great example of what NOT to do. There is a way to take advantage of credit cards though, and in this article you will find out how.

Why companies offer credit cards – Companies make money from credit cards by means of interest charged to the cardholder, fees associated with the card, and fees paid by businesses that accept credit cards. Some businesses will advertise and sell in-store credit cards as an incentive to customers to buy from them in order to cut transaction fees from other credit card companies.

The Money

Many credit cards have a reward points system to which they give gift cards or cash back. Users can earn extra cash by utilizing the rewards point system. Certain credit card users have earned up to $1,000 or more a year from cash back rewards (I personally have made $300 this last year in cash back rewards).

Other Benefits

One great tip is to make payments on time or early which can help individuals have a better credit score. There is also nice discounts with certain credit card that can help save money on common purchases in stores. Credit cards are such a great resource for more $$ and everybody wants that!

How to do it

Use them wisely and never pay more than you can afford.

Once you have a credit card, make sure to check all the terms and conditions and understand fees associated with them. A person who becomes wealthy makes smart decisions. ATM fees, cash advance fees, and late fees are common among credit cards. Getting educated as much as possible will ensure that money will be made.

Make sure there is an awards program with cash back or gift cards because every reward is important.

Use the credit card for common purchases and start earning points. As soon as the purchase is made, pay the balance off before the grace period ends. Do this as soon as possible. Paying that balance right away is a wise decision in case of forgetfulness later on. This prevents interest from being charged to the card. Nobody wants that because that would mean losing money instead of earning it. Grace periods vary between issuers and commonly last 20 days or more. It is important to know what your issuers grace period is.

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Extra Sources: 

Writer, Author Bill Fay Staff. “The U.S. Consumer Debt Crisis.”,

Lambarena, Melissa, et al. “How Do Credit Card Companies Make Money?” NerdWallet, 25 Feb. 2020,

3 thoughts on “Making Credit Cards Pay You

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