How to Make Your Credit Cards Pay You

Every single month the credit card companies rake in tons of money on finance charges that you have to pay in the form of interest because that's the price of our buy now pay later attitudes. Interest rates are so high these days that it sometimes seems as though you make a payment and your balance stays virtually the same. That's because it actually is. But there is a way to reverse the roles and actually have your credit cards pay you instead of the other way around.

Being a former stock broker I always had clients ask me, 'How can I make more money.' The same trick I taught them I will teach you but here's the catch; you have to have good credit and be able to get credit cards. Assuming you have good credit, here is what you do:

• Acquire a Credit Card: To start with you need to have a credit card that pays a 'cash back' bonus to you such as Discover and others. You need to be sure that the credit card is either a new account or an account that has a zero balance to start.

• Spend Money: Once you have a card that gives you money back, you simply do what you always do in the way of your everyday spending but use the credit card to make the purchases. Use it for purchases such as gasoline, groceries, you name it. The more you spend the higher your cash back will be.

• Pay Your Balance in Full: This trick only works if you pay your balance in full each month. That is why the credit card has to be a new account or one with a zero balance. This is the step that takes discipline. It may indeed be tempting to purchase things you don't need with the credit card, but if you excessively spend and then can't pay the balance in full you will then be setting yourself up for the same old interest trap as you have been accustomed to. A good rule of thumb is to only use the credit card when you know you have the money in the bank to cover the purchase and then after you make the purchase pay that amount to the credit card right away using the online bill pay option that almost every credit card company has set up.

That's it, it really isn't rocket science. This trick does work. I have three credit cards that I use to perform this trick and every quarter -three months- I get a nice little bonus check in the mail. Because I pay may balances in full each month I never pay interest so in essence I am getting paid to buy things I would normally buy anyway.

You have to buy groceries, gasoline, and a certain amount of entertainment all the time anyway so you may as well get a little bit back for your efforts. While you won't get rich using this trick, it is a true reversal of fortunes and when executed properly it will have the credit card companies paying you.