A credit card allows you to borrow money from the bank for your purchases, does not matter what you are buying. You obviously have to pay that money back in a specific “grace period” to the bank otherwise you will be subjected to pay interest on the top of what you borrowed. It is quite helpful when you want to opt for a large purchase and pay it off in smaller chunks and who exactly knew that you can actually make money by using a credit card.
Making money by using a credit card might be somewhat tricky but not at all impossible and who doesnot love some good bucks without making much of an effort. Different ways in which you can make money using a credit card are:-
1 Cash Back Credit Cards
Get a credit card that allows you to accumulate rewards while you shop using them. This type of credit card is called as a cash back credit card. You can earn 1% to even 5% cash back credit rewards for the things you purchase depending upon the card you are using.
For example if you are using your credit card for pretty much everything like bills, shopping etc and got subtotal bill of Rs.30,000 per month, with only 1% cash back you can actually get Rs.3600 per year which sounds like a great deal.
2 Cash Back On Fuel Purchase
There are several credit cards in India that have tie ups with oil companies and come as co-branded cards. Apart from those, there are also a few other credit cards that offer you fuel rewards.
Opting for these cards might make purchasing fuel slightly cheaper for you and reward you for making unavoidable fuel expenses for your commute and weekend getaways. For example Citibank credit card will offers you the benefit of saving 5% on purchasing fuel at IndianOil outlets and as a joining perk, you will receive 250 bonus points. Ultimately, it gives you a benefit of almost 70-78 litres of free fuel in a year.
3 Bonus Reward Points
Apply for a credit card with sign up bonus. The bonus may range from certain buck off in a flight or on a hotel booking to online shopping. Earning the spending bonus only requires you to spend a certain amount on the credit card within the first few months of having the credit card. If you can meet that requirement, the bonus is yours.
4 Invest Your Cash Back
Investing your cash back rewards is definitely going to be helpful in the long run even if you are investing a little. The little amount is going to turn into some big bucks in no time by getting the interest provided by the bank on your savings. So, if you invest your cash back reward of Rs.3600 per year, you are supposed to get a good deal on your savings which might come in handy for some rainy day.
5 Selling Your Reward Points
Selling your reward points is rather tricky but obviously helpful. You can use your cash back credit rewards for booking tickets or hotels etc for your family or friends in exchange for the cash which is a win win for both the parties in case you do not have time to use your rewards yourself but you have to be careful considering this as it might be illegal in your state and get you a felony for going against the terms and conditions of the credit card.
6 No Interest Credit Cards
Certain credit cards are offered without any annual fees or charges apart from the standard rates as stipulated by the Bank if you pay your bills on due time. By availing these credit cards, the customer can save money on additional cost of procuring and maintaining their credit cards. The no interest on your already big monthly bill is definitely going to take some load off your shoulder.
7 Online Shopping
Certain online sites allow you to shop using credit cards with an additional gift of a cash back or some gift card for your next purchase. The gift cards can be “ gifted” to any family or friends and can save you expenses on buying actual gifts for them and also when the season sale is up, you are given the benefit of additional discount by using the credit card for purchase along with the seasonal discount which is every shopaholic’s dream. Whichever shopping portal you use, read the terms and conditions and fully understand how the program works.
8 Extended Warranty Benefits
Often we have to be picky in deciding whether to buy the additional warranty for the electronics which is is indeed going to burn a hole in your pocket. But with certain credit cards you are offered the advantage of additional extended warranty for your particulars which is definitely a great deal and is going to save you from spending that huge bucks for the inattractive cause like extended warranty. Keep your purchase receipt for the duration of the warranty so you can easily submit a claim in the event of a product failure.
9 Price Adjustments
It’s a shame when they buy something online and that same thing goes on discount in a matter of two days. Certain credit cards allow you to make a refund for the price difference. Read the instructions and conditions of your card carefully and submit a receipt of the purchase to get a claim for the reduced price.
10 Restaurant Discount
Certain credit cards in India provides a huge discount on restaurant bills. Most banks have partnerships with restaurants, pubs, food chains that offers you a great discount such as 5% to 40% off on their bill. Each restaurant has different terms and conditions to their offer. You might get the discount on your total bill, on the food bill, on food and soft beverages, or the discount can be availed of only on a minimum amount spent. At certain restaurants, customers are entitled to a complimentary drink, appetizer or a starter.