Most of us are accustomed to think: a credit card exists in order to pay for the necessary purchase, for which there is not enough money now. But actually buying essential goods on credit is a direct path to the debt trap. After a few months, instead of the credit limit on the card, you will only have a mandatory monthly payment that you will make over the next few years.
But in fact, a credit card can be used so as not to pay interest to the bank, but, on the contrary, to receive the benefit yourself. To do this, you just need to follow 4 simple rules:
- Do not bring matters to interest.
- Earn cashback and interest on the balance.
- Use credit card as collateral.
- Never withdraw cash from a card.
And you will become a little richer. And now we will tell you more about each of them.
Do not bring to pay interest
Most of the credit cards offered by various banks have a so-called grace period. Most often, this period lasts for 50 to 60 days, but sometimes it reaches a period of 120 days. And if you make a purchase with a credit card, but during the grace period you have time to pay off the debt to the bank, the bank does not charge you interest for using the money. You pay exactly the amount paid for the purchased goods, and no more . Choose yourself just such a card. How to use it correctly?
Let’s assume that you have planned a flight to the Crimea, but you do not have money for air tickets. Can I use a credit card in this case? Remember: to cover the deficit between incomes and expenses at the expense of a loan is fraught with falling into a financial pit. If you do not have money for tickets, you first need to find a way to earn them or know exactly when they will appear.
But consider another situation. You know for sure that your wages will be transferred, say, on December 25th. Of this amount, you can safely buy a ticket to Simferopol for 7,200 rubles. But you saw that from December 10 to December 15, the airline has a special offer, during which it sells tickets to the flight of interest for 1 100 rubles cheaper. You cannot buy this ticket during the promotion period. In this case, you do not have enough money to pay. But you can use a credit card with a grace period (grace-period crediting)! And then after receiving the salary during the grace period, return the amount borrowed from the bank. In this case, you will not pay interest to the lender. And at the same time save 1 100 rubles, using the promotional offer of the airline. Thus, you received a loan and did not incur any additional financial expenses, and you still remained “in the black”.
Earn cashback and interest on the balance
We can tell you about another way to make extra money on credit cards. But for this, in addition to the credit card, you must also have a debit payment card framed , on which your own earned money should lie . Consider an example. Suppose you spend an average of 35,000 rubles a month to purchase goods and services. The amount not less than this monthly comes to your salary card. Plus, you still have a cashback credit card. Choose those credit cards whose service costs 0 rubles per year.
As a rule,% cashback on credit plastic is higher than on debit, so it is more profitable to pay for purchases with credit funds. In accordance with the bank card terms, sellers of goods and services will refund you a certain percentage of your spending in the form of bonuses. With expenses in the amount of 35,000 rubles per month, you will accumulate approximately 400-1500 bonus points, which will become your additional income.
Do not forget during the grace period to transfer the money you have spent from payroll plastic to credit . In this case, the bank will not pay interest for using borrowed funds. And the received bonus points will remain to you, and you can spend them at your discretion.
Even better, if the option of interest on the balance is connected to your debit card account . And if you calculated your credit card within a month, then the same 35,000 rubles remained intact on your debit card, and the bank will charge you an interest on this amount at the end of the month (rates usually vary from 3 to 7% per annum). You can earn another 150-270 rubles a month on this (depending on the card conditions).
Then, when you are paid a monthly payment on your payroll plastic, you will transfer the money to a credit card and pay off the debt. The main thing is to have time to do it during the grace period. On the debit card, you will have a minimum balance of at least the amount of your monthly expenses (after all, you pay all the expenses with a credit card).
It is clear that you will not be able to earn any large amount this way. But acting under this scheme, you will use the money of the bank, you will not pay interest for it, and you will receive additional income . And let for one month you earn only a cup of coffee with dessert. But if you begin to save the money received, then in a year you will be able to save up for good headphones. And in a few years you will receive a free laptop.
Leave a credit card as collateral
You can also leave credit plastic as collateral without using your personal funds. The security deposit may be required, for example, by a company that rents out bicycles or even cars. The amount of the pledge when renting a car is from 10 to 50 thousand rubles (depending on the brand of car). The rental company can reserve the amount of the deposit (deposit) on the client’s card (it is not necessary to present it and leave the payment instrument with personal funds). And if the client passes the car to the owner without damage after the lease expires, the deposit on the card is unlocked, the reserved amount remains intact. The percentage for using the money you do not pay. At the same time you get a car rental service without attracting your own funds.