How to make money on credit cards

Stoozing is all about how to make money from 0% interest periods, but how does it work?

Using 0%В interestВ introductory periods on credit cardsВ can help you make money, but you have to find the best bank accounts and manage your card payments.

StoozingВ credit cards

If you want to start stoozing find a credit card with anВ interest free periodВ for purchases.

There are many different methods and terms for borrowing on your credit card to make money, but it is most commonly knownВ as stoozing. Here we explain what ‘stoozing’ is, how to be a ‘stoozer’ and useВ a ‘stoozepot’ to earnВ money.

What is stoozing?

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Stoozing isВ treating 0% introductory rates on credit cards as interest free loans. You then invest this 0% money into high-interest savings accounts. Any interest gained after the introductory period ends and the card is paid off is profit.

StoozingВ reached its heyday before the 2008 crash when credit was more freely available and interest rates higher. Some people were reported to have stoozed balances well intoВ the tens of thousands.

ItВ isВ less common today, but with credit making something of a comeback it could soon very much be back on the cards.

How toВ make money from stoozing?

There are many different techniques to stooze effectively, but for most intents and purposes there are two methods: quick and easy, or advanced.

The simple way – spend and save

This method is reasonably straight-forward – simply build up your cash savings by using a 0% interest credit card to make as many purchases as possible.

• Find a savings account that pays you the most AER andВ get the best 0% purchase card you can.

• MakeВ as many of day-to-day purchases you can afford on your card.

• Deposit the cash you save into a high interest account.В Remember, your depositsВ need to match your card spending.

• Once the 0% interest period expires use the saved cash to pay off the balance.

• Any money left over is your profit.

So if you borrowed ВЈ1,200 on a 24 month 0% purchase card,В matched this with ВЈ1,200 in deposits in a 3% interest account, you could make about ВЈ72 by the time the 0% period expires. However, the larger the sum of money you ‘stooze’ the bigger the returns will be.

You will need to be disciplined with your spending and never borrow no more than you deposit – if you don’t pay off the card debt before the 0% period expires you’ll lose your profits.

Advanced stoozingВ – card balancing

This is how you can make bigger profits from creatively moving debts around, but it is not for everyone. It requires meticulous planning and calculations to manage.

• First you need a money transfer credit cardВ that will allow you to transfer money directly into your bank account.
• Transfer money from the card into a high interest account or other investment (investments typically offer higher returns but are risky, and could leave you worse off).
• You can use a money transfer card to put cash into your account and transfer that cardВ debt to a 0% balance transfer card. Balance transferВ cards with no, or low, transfer fees can keep costs as minimal as possible.
• When the 0% period on the money transfer card expires, pay off the debtВ with the money from the savings account,В there should be extra money left over as profit.

High interest current accounts

To start stoozing you need a high interest current account to save money

This method can be used multiple times with many cards to create very large ‘stoozepots’. These canВ generate hundreds, possibly even thousands, of pounds in interest. For example, ВЈ10,000 could earn you ВЈ300 a year from an account paying 3% AER.

However, balancingВ this much unsecured debt can be risky and requires commitment to manage multipleВ cards.

You will need to make sure you’ve worked out that everything will add up in your favour and transfer fees won’t wipe out your profits.

What to watch out for

Don’t get mixed up, make sure to not use your 0% purchase card to make a money transfer, and do not use your money transfer card to make any purchases. These cards will often offer different rates for purchases and money transfers.

You must meetВ your minimum monthly card repayments or you will lose your 0% interest period. This would make your ‘stoozing’ pointless and you should pay off your card debts as soon as possibleВ or you will be out of pocket.

If you do decide to become a ‘stoozer’, you will need a goodВ credit score, so regularly check your credit report – read our guide on how to improve your credit score to learn more.

To keep credit scores clean, ‘stoozers’ should also make sure to close credit cards once they’ve been paid off.

Finally don’t forget to carefully read through all the terms and conditions, thoroughly read credit card summary boxes so you’re not caught out by any hidden fees. ThenВ work out how much money you can make and decide whether it’s worth putting in the effort.

0% money transferВ credit cards

Find a credit card that lets you transfer cash into your bank account.

For the less adventurous – avoiding interest

Many of us are are not committed enough to put in the effort to stooze credit cards but there are simpler ways to exploit 0% periods on credit cards withВ savvy use of 0% purchase and balance transfer cards.

This is much simpler activity – simply make your purchases on with a credit card offering a 0% introductory period. When this expires transfer the debt onto a balance transfer card.

Provided you meet your minimum repayments and keep your credit score in good health you canВ avoid interest accruing on your debts for many years, until you can afford to pay them back.

by Saeed Darabi – Last Updated December 27, 2017 (This post may contain affiliate links.)

Most of us would easily associate credit cards with expenses and spending.

However, there are ways to make some money from them as well.

And no I am not talking about using stolen credit cards, affiliate programs, reward cards or swipe machines to make money.

I am talking about taking advantage of your own card(s).

It’s not a get rich quick scheme, and it does require a lot of willpower and resolve on your part for this technique to work.

The trick lies in the sort of tactics which are successfully employed by those credit card companies to earn a profit off of us, that would inflate rather than deflate our wallet.

It seems that credit card companies are always trying to find new ways to lure people in.

One of the most useful tactics obviously involves the zero interest offer on purchases. How it works is that they basically guarantee you 0% interest with your individual transactions over a fixed period of time.

Nowadays, 30 to 60 days free interest purchases are the norm in the industry. But there are also some credit card providers ready to stretch this commitment for up to a year.

Naturally, people love to take advantage of such generous offers.

The problem is when this stipulated period is up, those grateful credit card holders suddenly find themselves being charged with exorbitant fees!

Given the high-interest rate, the amount to pay to the credit card providers has to be huge, for those who still have a balance by the and of the billing cycle.

So the only way to avoid paying those outrageous fees is to simply settle your balance by the end of the month. To do so, you obviously have to utilize that money from your bank.

Now we are back to square one!

While you are not losing out to the sky-high interest rates, at the same time you do not gain anything at all, at least in the financial perspective.

Table of Contents

Making Money from Credit Cards

Let’s now switch our attention to a scenario where it is possible to get the best of both worlds.

Just suppose that you are able to make full use of your credit card without having to revert to your bank account to make the payment, and you can evade those ridiculous interest rates.

This may sound amazing, but it is entirely doable. As you will find out below, there is a way to use your credit cards to create profit rather than debt.

It’s known as credit card arbitrage. And it’s how banks make money.

Here is how it works: You take a free or low-interest loan from a credit card company and deposit that in a high-yield savings account. You then pay the minimum payment required each month and what’s left goes into your pocket. So basically you earn money using the interest rate spread between the money you receive and the money you pay.

There is some amount of risk involved here!

But if you’re a savvy credit card user and prudent on your personal financial management, this strategy could work fabulously!

The key to this strategy is regular spending pattern and a few more simple things that I am going to tell you about.

1. Find Credit Cards with Zero Interest Rate

First and foremost, you need to identify and get those promotional credit cards that come with zero interest rates.

While you are at that, check out the zero interest duration of the offers from the credit card providers. Obviously, the longer the duration is, the better it is going to be for you, as your chance of making more money is directly proportional to the duration.

If it happens that you can lay your hands onto one such zero interest credit card (for at least a few months) that also comes with zero annual fees, then it is a huge bonus.

Of course, before anything else can proceed, your application for the card has to be approved first. So make sure you keep your credit record decent.

2. Invest the money

Once you’ve obtained your new 0% interest card, you will deposit the borrowed money from the credit card into an interest earning account such as a savings, money market or short term certificate of deposit. (Make sure your CD has a shorter term than your 0% introductory card term).

3. Settle the Monthly Minimum

Fork out just enough money every month to pay for the bare minimum due.

It is imperative that you make the monthly payment before the due date each month.

4. Pay the Card off and Collect Your Profit!

Keep in mind that you need to put an end to the cycle when the zero interest promotional period expires.

Before the end of the 0% interest period, pay off the entire credit card bill with your principle funds in your savings account.

The balance left in your savings account is your profit from this venture.

There’s really not much to it except waiting for the interest to accumulate while maintaining the regular monthly payments.

If done correctly, it can be an easy way to make money.

Takeaway

If you make all the required minimum monthly payments on the credit card (on time each month) and repay the entire balance before the introductory period expires, you will turn a profit from credit card arbitrage.

The critical success factor is, of course, finding that credit card with 0% interest rate for an extended period of time.

As a reminder, whether you are successful in getting that 0% interest credit card will be dependent on your credit score. So keep your credit record unblemished if possible for this strategy to work.

You also have to be extremely diligent in paying that monthly bill on time and be resolved to NOT TOUCH the money you’ve put into the interest earning account.

Discussion

Douglas Antrim says

You have done an awesome job of explaining how to make money using the credit card arbitrage. Probably the most important item to remember is to pay off the 0% or low % credit card before you begin to acquire a high interest rate.

Thanks for a great article.

Share your thoughts Cancel reply

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Most advice about credit cards warns you about the dangers, the risk of getting into debt, and the potential for paying hundreds of dollars in interest and fees. While there’s some truth to this, the whole truth is that it depends on how to use your credit card. You can make big mistakes, rack up a lot of debt, and ruin your credit. You also can use your credit card responsibly, learn the rules, build your credit, and save and earn money. And you can do it without getting into debt as long as you follow two basic rules: charge only what you can afford and pay your balance in full every month.

Consider the many ways you can use credit cards to your advantage.

Transfer balances to reduce your interest rate

If you’re currently carrying a balance on a credit card with a high interest rate, you can save hundreds of dollars by transferring that balance to a credit card with a lower interest rate. Taking advantage of a 0 percent APR balance transfer offer will save you even more money as you can avoid paying interest for up to 21 months depending on the credit card you choose. For example, you can save almost $400 by moving a $3,000 balance at 17 percent to a credit card with a 0 percent APR for 12 months, if you can pay $251 each month.

Use 0 percent purchase APR for big purchases

In the past, 0 percent introductory rates were offered only with balance transfers. Now, quite a few credit cards offer 0 percent introductory APR on purchases as well. If you have a big ticket item to purchase—new furniture, a medical procedure, or a vacation—using a credit card with a 0 percent APR will let you break up the purchase in multiple payments without having to pay interest.

Pay for everything with a cash back credit card

Cash back credit cards let you accumulate cash rewards on your credit card. If you can use your credit card to pay for pretty much everything, and not just those purchases that earn the most rewards, you can max out your cash earnings. For example, if you spend around $3,000 each month on bills and other expenses, you can earn $360 a year on a card that pays just 1 percent in rewards.

Apply for a credit card with a sign-up bonus.

There typically are more than two dozen credit cards with sign-up bonuses on the market. Bonuses range from cash back to free hotel stays and points you can use for airline tickets. 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.

Redeem your cash for a gift card

While cash may be the more versatile reward, you can maximize your rewards if you redeem them for a gift card with the credit card issuer’s rewards partners. For example, you may be able to redeem $20 in cash rewards for a $25 gift card.

Skip the car rental insurance

Using the car rental agency’s rental coverage can increase the price of your rental up to $20 each day. That’s $140 if you rent a car for a week. Most major credit cards provide car rental insurance as long as you decline the coverage offered by the car rental company and pay for your rental with your credit card.

Use your credit card issuer’s discount mall

It takes a bit of planning ahead, but you can save money on dining, movie tickets, flowers, and more by making the purchase through your credit card issuer’s discount mall. Take a look at your credit card issuer’s online discount mall to see which retailers offer discounts.

Earn free travel or hotel stays

Use a travel rewards credit card to earn miles or points that you can redeem for a free flight or a free hotel stay. You can use the free flight for an annual vacation, holiday travel, or weekend getaway.

Shop on retail cardholder discount days

While retail credit cards aren’t the best credit cards to have in your wallet because of the high interest rates and limited use, some have great rewards programs offering perks like special discounts days for cardholders. Read through your rewards program or call your card issuer to find out if your retail credit card offers special cardholder discount days.

Take advantage of price adjustments

Don’t you hate to purchase an item and go back a few days later to find that it’s marked down to a lower price? Your credit card may refund you the price difference with price protection benefits. The ease of getting the benefit depends on your credit card. With Citi, for example, you only have to register your item with the online Price Rewind tool. Discover and Chase require you to complete a claim form and provide a receipt showing your purchase and a copy of the claim form.

Extended warranty benefits

You want to purchase the extended warranty on expensive electronics, but spending extra money isn’t an attractive option. If you use the right credit card, you can automatically get an extended warranty and save that money. Check your credit cards before you shop to learn whether any of your cards have extended warranty coverage and what you have to do to take advantage of the benefit. Keep your purchase receipt for the duration of the warranty so you easily can submit a claim in the event of a product failure.

Pay no foreign transaction fees

Most credit cards charge a foreign transaction fee, usually 3 percent of the transaction amount, on purchases you make in other currencies. If you travel internationally, these fees can add up quickly. Some cards waive the foreign transaction fee on all its credit cards, so if you’re going out of the country, find a card that offers this feature.

Don’t carry a balance

None of the benefits of the card will be worth it if you carry a balance and pay finance charges. Pay your balance in full on time each month to avoid paying interest and late fees.

Americans are no strangers to credit card debt. In fact, the median amount owed on a credit card is $2,000, according to GOBankingRates.com’s 2016 U.S. Household Debt survey.

If you’re one of these people carrying a high balance on your card, you’re probably racking up interest charges. So, as your credit card issuer is making money off the interest and fees you have to pay, you’re losing more and more of your hard-earned cash.

But there’s a smart way you can pay off your credit card debt: Make your credit card work for you.

Sure, swiping your card everywhere you go won’t get you rich quick. But when you use your credit cards strategically, you can generate some cash for payments. Or, if you’re debt-free, you can use the extra funds to pay for an upcoming trip or that flat-screen TV you’ve always wanted. Here are seven creative ways you can make money with your credit cards.

GET MONEY WITH CASH-BACK CREDIT CARDS

To make money using credit cards, get a card that pays you to shop. This type of card is called a cash-back credit card. Depending on the type of card you get, you can earn 1 percent or even 5 percent in cash-back rewards for certain purchases. Take the Discover it card, for example.

With this credit card, you can earn 5 percent cash back in rotating categories – such as gas, restaurants and more – on up to $1,500 in purchases every quarter. So let’s say you spend $1,500 on qualifying purchases – that’s $75 going right back into your pocket. And in addition to 5 percent cash back, you get 1 percent unlimited cash back on all other purchases.

This card also offers a rare perk: Discover matches dollar-for-dollar all of the cash back you earn in your first year, which can add up quickly.

The more you use a cash-back credit card, the more cash you can earn. Be careful, though. Pay off your credit card balance in full every month to avoid racking up credit card debt and paying high interest charges. If you fall too deep into debt, the cash-back rewards might not be worth it.

EARN BONUS REWARDS POINTS

“The best way to leverage credit cards for money, in my experience, is to open a new card with a large flight mileage bonus, and use the points toward a free or heavily discounted flight,” said Stacy Caprio, search marketing manager at TimePayment, which provides equipment financing for businesses.

You can take your pick of credit cards offering sign-up bonus points. For example, the Chase Sapphire Preferred credit card – named one of the best travel rewards credit offers by GOBankingRates – lets you earn 50,000 bonus points after spending $4,000 in purchases with the card in the first three months after opening an account. That’s the equivalent of $625 you can use toward travel.

So, you might want to use this card, or similar rewards cards, for as many expenses as possible. And if possible, see if you can rack up rewards points by using your credit card to pay your rent.

“It’s common knowledge that the best way of getting value – or money – back from credit card use is earning points,” said Roman Shteyn, co-founder of RewardExpert.com, which helps travelers make the most out of their credit card points and airline miles. “However, oftentimes people are not charging one of their biggest monthly expenses to their cards: their rent.”

INVEST YOUR CASH BACK

You can also put cash-back rewards to work for you and invest the money – even if you earn less than a few hundred dollars. Thanks to the power of compounding interest, your cash-back rewards will grow into a sizable nest egg over time.

Let’s say you earn $300 in cash back every year. If you invest that $300 into an account that earns 7 percent interest annually, in 10 years your balance will grow to more than $4,000.

As an added credit card benefit, some rewards credit cards allow card owners to link their cards to eligible investment accounts. Take the Fidelity Rewards Visa Signature credit card: You can earn unlimited 2 percent cash and have those rewards automatically deposited into an eligible Fidelity account, such as a brokerage account, a 529 college savings plan, a retirement account and more.

To maximize your investment earnings, look for credit cards with no restrictive categories. The more restrictions, the fewer opportunities to cash in and invest your rewards.

SELL YOUR REWARDS POINTS – BUT BE CAREFUL

Travel rewards credit cards are a godsend if you’re a frequent traveler. But what if you don’t travel often? Shteyn suggested selling your points for money by booking tickets for friends and family with points in exchange for cash.

“It can be a win-win for both parties,” he said. “Your friends get a discounted ticket, and you get cash back at a higher rate than your bank may offer.”

But, before you get too excited and start selling your unwanted rewards for cash, know the risks. Although some rewards programs allow members to gift rewards or points to their family and friends, selling these perks for cash might violate the terms and conditions of some programs.

So before you sell, carefully read your credit card rewards’ terms and conditions thoroughly – and make sure the process is not illegal in your state.

DO YOUR SHOPPING ONLINE

As a credit card benefit, some cards allow you to earn cash back or points by shopping online. You might need to log into your credit card account in order to access these savings and take advantage of the deals.

For example, eligible Discover card members can earn additional cash back when they shop through Discover Deals. This includes 5 percent cash back when they shop LivingSocial, Apple, Wal-Mart and other online retailers. They can also score gift cards, like a $25 Sam’s Club gift card, or savings off their next purchases. Other credit card issuers have similar shopping portals.

Whichever shopping portal you use, read the terms and conditions and fully understand how the program works.

JOIN ACORNS AND LINK A CREDIT CARD

If you want to invest but don’t know where to begin, the Acorns app might be an excellent starting point. This investing platform automatically invests your spare change from everyday purchases.

Simply sign up, and link your credit card or debit card. For every purchase you make, Acorns rounds up your purchases to the nearest dollar and invests the difference, turning your spare change into income.

Your funds are invested in a diversified portfolio to lower your risk, and you can link as many credit cards as you like. The amount you can potentially earn through the app depends on how often you use a linked credit card.

There’s a $1 monthly fee for using the service. But if you’re a college student with a valid .edu email address, you can use Acorns fee-free for up to four years.

GET CREATIVE WITH EXPIRED CREDIT CARDS

It comes from you in the form of fees and interest, and also from the merchants where you use your cards.

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

Credit card companies make the bulk of their money from three things: interest, fees charged to cardholders, and transaction fees paid by businesses that accept credit cards.

Use credit cards wisely, and you can minimize the amount of money that credit card companies make off of you.

How credit card companies work

The broad term “credit card companies” includes two kinds of enterprises: issuers and networks.

Issuers are banks and credit unions that issue credit cards, such as Chase, Citi, Synchrony or PenFed Credit Union. When you use a credit card, you’re borrowing money from the issuer. Retail credit cards that bear the name of a store, gas company or other merchant are typically issued by a bank under contract with that retailer. Hence these are often referred to as “co-branded” credit cards.

Networks are companies that process credit card transactions. The major networks in the U.S. are Visa, Mastercard, American Express and Discover. American Express and Discover are both networks and issuers.

When you use a credit card, money moves electronically through many hands, from the issuer, through the network, to the merchant’s bank. The network also makes sure that the transaction is attributed to the proper cardholder — you — so that your issuer can bill you.

Where the money comes from

You are a key ingredient in a credit card company’s moneymaking recipe, as are the merchants where you use your cards.

Interest

The majority of revenue for mass-market credit card issuers comes from interest payments , according to the Consumer Financial Protection Bureau. However, interest is avoidable. Issuers typically charge interest only when you carry a balance from month to month. Pay your balance in full, and you’ll pay no interest.

Subprime issuers — those that specialize in people with bad credit — typically earn more money from fees than interest. Mass-market issuers charge plenty of fees, too, although many of them are avoidable. Major fees include:

Annual fees. Annual fees are typical on cards with high rewards rates, as well as cards for people with less-than-good credit.

Cash advance fees. Issuers charge these fees when customers use their credit card to get cash at an ATM. The fees range from 2% to 5% of the amount of cash taken out, often with a minimum dollar amount, such as $5.

Balance transfer fees. When you transfer debt from one credit card to another to get a lower interest rate, you’ll usually be charged a fee of 3% to 5% of the amount transferred. Some cards don’t charge these fees , or waive them for a certain period of time.

Late fees. Failing to pay the minimum amount by the due date will usually result in a late fee. Some cards waive the first late fee or don’t charge these fees at all. (Your credit scores, however, can still suffer if you pay late.)

Interchange

Every time you use a credit card, the merchant pays a processing fee equal to a percentage of the transaction. The portion of that fee sent to the issuer via the payment network is called “interchange,” and is usually about 1% to 3% of the transaction. These fees are set by payment networks and vary based on the volume and value of transactions.

Savvy customers cut their costs

Without cardholders like you, credit card companies don’t make money — but you can limit the amount they make from you. Avoid extra costs by:

Paying your balance in full every month to avoid interest charges.

Setting up electronic alerts that notify you when payments are due, so you avoid late fees.

Setting aside money in an emergency fund to avoid costly options like cash advances.

Choosing a credit card without balance transfer fees.

Paying an annual fee only if the rewards you’ll get from the card will exceed the cost. Remember that rewards and sign-up bonuses can put money in your pocket, but card fees and interest can eat right through it.

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NO!! I am not a credit card sales man pestering people with free life-time cards or enticing them with special gifts to buy more cards, and send them down a debt spiral, while I mint my commissions on way to the bank!
I’m just another common man who swipes his card day-in and day-out, at the groceries, at the petrol stations, at the super markets, and nudges around to pay the bills!
Over a period, I’ve developed some habits (or in corporate parlance “Best Practices”) with my credit card usage, which have not only helped me avoid the debt spiral; but also make money out of it!! Read on to know how!

1. Avoid paying interest on your credits!

The first step towards earning extra money from credit cards is to avoid paying interest on your credits!
Too many cooks spoil the broth!
Too many cards spoil your growth!!
Have a strict limit on the number of credit cards you have; and your overall credit limit.
Your overall credit limit (inclusive of all cards) should not over shoot your monthly income; else, you will have trouble paying your next credit bill.

2. Avoid cash and debit card transactions to the maximum

The next time you buy a mobile phone or the monthly grocery at the store, avoid paying by cash, pay by credit card instead.
First it helps in avoiding black money to a teenee-tiny extent. Secondly, and more importantly, your money stays in your account until you make the credit card payment (not for debit cards though).
This gives you extra interest on your savings account balance. Sounds petty?! Not really!! Let me explain…
The recent RBI ruling on savings account interest rate has the following key takeaways:

• RBI has de-regulated the savings account interest rates; so, competition is heating up among the banks to increase the rates further (One bank has already raised the rate to 6 %. )
• The savings account interest rate is currently 4%
• The rate would be calculated at the end of each day, instead of the lowest balance of a month earlier (most of our account balances are low by the end of the month 🙁 )

Therefore, if I buy, say an iPhone for, Rs.30,000 on October 1 using my credit card, my credit statement would be generated by the end of the month.
So, this 30K bucks stays in my account, until I make the payment at the end of the month. At say 4% interest rate, this works out to close to Rs.100/- per month (@4%, each Rs.10, 000 earns an interest of Rs.1.01 EACH DAY. )
So, that’s extra money as interest from your purchase!!
Note: Before swiping, make sure the vendor doesn’t charge any service charges; most don’t; but it’s always safer to confirm.
While using for fuel, go for banks which have tie-up with your credit card company so that you don’t have to pay surcharges.

3. Delay paying your credit card bill until the last few days

This is the next vital step towards earning extra money – pay the bills at the RIGHT time!! Earlier, I used to settle my credit card bills soon after I make a purchase. But, as I realized how much I can earn with additional interest, I delay my payments until the last days. If my due date is 15 th of a month, I don’t pay until 13 th or 14 th ; so that I can earn savings account interest during the grace period as well. With net banking and mobile banking, payments are cleared in seconds, so there is no worry of cheques not clearing on time or national holidays!!

4. Negotiate increasing your credit payment cycle

By now you would have realized that longer the grace period, the more you can delay the payments; and more the interest you can accrue. So, negotiate with your bank and try to increase the grace period. Recently, I upgraded to a higher end card, and my grace period shot up by 10 days. Now, my half-yearly interest credits are growing more and more!!

5. Reward Points

Of course, there is always the delight of earning reward points for your purchase, and en-cashing them for exciting gifts!!

6. DISCIPLINE IS MANDATORY

A disciplined approach is of vital importance while using credit cards. Make sure, you set reminders on your handsets so that you don’t miss the payment dates! Better to pay your bills a couple of days before the due date, than rue missing the date and pay interests. Don’t be penny wise, pound foolish!!

And always keep a check on your spending. Having a credit card is no license to go on a shopping spree. The wealthiest are not those who earn more; but who spend less. Plan your monthly budget; and strive to stick to it. Avoid impulsive shopping – when you go shopping, do not buy anything beyond that you have planned for. Also, inculcating a savings habit would give great returns in the long run. Try these tips and your credit card will soon be making money for you!
Happy Swiping!!

This is a guest post by Arun K Krishnan – an IT Consultant, working with a multinational consulting company from Chennai. He’s an avid follower of TFL; and wanted to share his financial tips for the benefit of other readers. The views expressed herein are the author’s personal views.

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Transferring money from one credit card to another can be a useful option. For instance, you might want to purchase an item that costs more than the credit limit you have on one credit card. You would then transfer money over from a separate credit card and increase the available amount on the credit card you wish to use for the purchase. The transfer process is generally handled as a credit card payment from another credit card.

By Phone

Determine the amount of money you need to transfer. Write down the credit card information for the account you want to transfer the money from, as well as the information for the account you wish to transfer the money to. This helps keep the information straight when making the transfer.

Call the credit card company that you wish to transfer the money to. Follow the automated phone prompts to make a payment on your account. Select the option to make your payment by credit card. Enter the credit card information of the account you will be transferring the money from, and the amount of money you wish to transfer. The entire transaction is entered as a payment on your account.

Write down any confirmation number provided. Wait 24 hours and check both credit card account balances to ensure that the payment/transfer has been recorded properly.

By Internet

Determine the amount of money you need to transfer and repeat the instructions from the previous Step 1.

Visit the website of the credit card you wish to transfer the money to. Follow the tabs or links to make a payment on the account. Select the option to make a payment with a credit card and enter the credit card information for the account you wish to transfer the money from. Enter the payment amount and submit the payment information.

Wait 24 hours and check both credit card account balances to ensure the payment/transfer has been recorded properly.

Depending on your creditor, the payment may be processed instantly, giving you the new available credit immediately following your phone call.

In this article:

It’s no secret credit card companies make a lot of money. But have you ever wondered how they do it? Credit card companies make money from interest, processing fees and fees charged to individual cardholders.

And it’s not only cardholders who have to pay to use credit cards: Merchants pay for the privilege to accept credit cards at their businesses. Read on to find out more about how credit card companies are making money and how you can minimize how much you pay to these financial giants.

How Credit Card Companies Work

When looking at how credit card companies work, it’s important to distinguish between the different types of companies out there: credit card issuers and credit card networks.

A credit card issuer is the bank or credit union that provides the credit card and lends the money used in a transaction. Chase, Citi and Capital One are three well-known credit card issuers. Co-branded credit cards like those you see from airlines or hotels are examples of issuers teaming with outside companies to create a card that offers consumers some type of specific reward.

A credit card network—like Mastercard, Visa, American Express and Discover—is the entity that processes each credit card transaction, handling the technical aspects of electronically moving the money around. American Express and Discover are both card issuers and networks, which means that in addition to processing, they also lend the money used in their cards’ transactions.

Card issuers and networks make money in different ways. Networks typically make their money from the merchants, who pay a fee to accept electronic payments from credit cards. The issuers make money from the consumer by charging them interest and fees according to their credit card agreements.

The Ways Credit Card Companies Profit From Cardholders

Credit card companies make money from cardholders in several ways: interest, annual fees and miscellaneous charges like late payment fees. Here is a breakdown of how each of those charges works:

• Interest. When you carry a balance on a credit card, you’re typically charged interest in exchange for being able to borrow the money. Your interest rate—or annual percentage rate (APR), which combines interest and fees into one rate to help you understand what the card will cost you in a year—will vary by lender and is based on your creditworthiness. APRs on credit cards can get pretty high (15% to 30% or even higher), which is why you should pay your bill in full each month to avoid these expensive charges.
• Annual fees. Credit card issuers typically charge annual fees on rewards cards and on cards for bad credit. Depending on the card, annual fees can be pretty costly, especially for cards that offer top-tier rewards. The Platinum Card ® from American Express, for example, charges an annual fee of $550—though annual fees this high are rare.
• Miscellaneous charges. This category includes several potential fees. For starters, the card issuer will charge you a late fee if you don’t pay your bill on time. They may also charge you cash advance fees, balance transfer fees, foreign transaction fees for purchases you make outside the U.S., or over-limit fees when you spend beyond your credit limit. The fee amounts vary by issuer, but the good news is you may never have to pay these fees if you manage your card well.

How Credit Card Companies Profit From Merchants

Have you ever tried to purchase something at a business that didn’t accept a certain type of credit card, like American Express or Discover? These and other credit card networks charge merchants fees to process card transactions, so some merchants opt to only accept cards in certain networks. These fees vary by network, but are typically between 1% and 3%.

Avoiding the Costs of Using a Credit Card

Credit card companies make a large part of their profits from cardholders. But don’t let that discourage you from using a credit card: Savvy cardholders can avoid most of the costs of using a credit card. From interest to miscellaneous fees, you can steer clear of many fees if you plan ahead and make sure you spend within your means.

First, make sure to know what your annual fee is on all your credit cards. Then consider whether paying that annual fee is worth it. Do the benefits of the card outweigh the cost of the fee? If you consider the annual fee worth it, carefully read your card agreement and note all the potential benefits—then take advantage of all the card has to offer.

Avoiding interest is simple if you manage your card right: Just make sure to pay your bill in full each month. If you need to carry a balance from month to month, make sure you do it on the card with the lowest interest rate, and pay it off as quickly as you can.

To avoid miscellaneous fees, be aware of what you could be charged for and when. If you know one card charges foreign transaction fees, for example, use a different card that doesn’t charge these fees when you travel. Use the same strategy for all your cards. If you’re not sure what fees your card charges, read through your cardholder agreement and note all the potential scenarios that could trigger fees.

Next Steps

Across the country, more than six out of 10 Americans have at least one credit card. Factor in all those people who make late payments and pay annual fees and other charges—on top those who pay interest each month—and it becomes easy to understand how credit card companies are making so much money. But as we’ve shown, you can reduce your contributions to their coffers with smart card management strategies.

To make the most of your credit cards, make sure you have a card that gives you maximum rewards for your spending. To browse some popular rewards credit cards, check out Experian CreditMatch TM to see specialized card offers based on your credit profile.

Also remember that before applying for any credit cards, it’s a good idea to check your credit so you know what lenders will see when considering you for an application. You can get a free copy of your credit reports and scores from Experian.

This post contains affiliate links. Please read my disclosure for more info.

Credit cards usually get a bad rap. They are blamed for people digging themselves into debt and defaulting because of high interest rates. However, I want to highlight all the great things about using credit cards. How you can make money with credit credit cards instead of throwing it away on high interest rates.

If you are already carrying high balances on credit cards then you’ll want to take a peak at a few other articles to help you get your finances in order. First being, H ow to Create a Budget That Actually Works and second, How to Pay Off Debt Once and For All.

Borrow Money Interest Free

Using 0% Offers

There are going to be instances where you’ll either need or want to make larger purchases. A few examples include: purchasing furniture, remodeling your home, or doing emergency repairs to your vehicles. Whenever these large purchases occur using a 0% credit card or finance option is a great way to borrow money interest free and to avoid paying high credit card rates.

Many times you’ll receive these offers via mail or see 0% financing options advertised in stores. When reviewing these offers, make sure you keep in mind how long these offers will last. For example if the furniture store is offering 0% on your $5,000 purchase for 24 months, that means you’ll need to make monthly payments of $208.34 in order to pay off the balance without being charged interest ($5,000/24= $208.34).

If you don’t believe you’ll be able to pay the balance off in full before the 0% offer expires you have a few options.

• Savings- You can use your savings to pay off the remaining balance before the offer expires.
• Balance Transfer- You can use a balance transfer option (see below for more details on how balance transfers work)
• Wait- Instead of making the purchase now, evaluate if it’s a need or a want. If it’s a want put off the purchase until you receive a longer 0% offer. Or wait until you have saved enough money to help supplement the purchase.

Balance Transfers

Balance transfers are great options if you’re carrying large balances on credit cards that are charging interest or have a 0% offer that is expiring. There’s usually a small percentage fee to do the transfer (about 3%) but this is minimal compared to credit cards high interest rates, ranging from 10-25%.

The idea of borrowing money interest free isn’t intended to support you living outside your means. Instead the idea is to allow you to make large purchases that are either unexpected or planned, not for routine shopping trips. If you do use as a method for living outside of your means, it’s likely that you’ll end up with more large balances than there are 0% offers, leaving drowning in debt.

Stop Paying Off Your Balance in Full

Even though many people use credit cards to keep up with the Joneses, they are designed to give you the option of borrowing money for 30 days interest free. However, many people do not use them correctly. Either they rack up debt and just pay the minimum. Or they pay off too much by paying off the current balance each month.

Instead of paying off your current balance each month, start paying off the statement balance. The reason for this is that your current balance includes last month’s purchases (balance you need to pay to avoid interest) and part of the current month’s purchases (balance you don’t need to pay until your next due date).

The easiest way to make sure you are paying your statement balance in full is to set up automatic payments. If you aren’t comfortable doing automatic payments you can pull up your last statement and pay online instead.

Use Rewards Programs to Earn Free Things

Nowadays, majority of credits offer some kind of rewards program as an added perk for you to choose them over a competitor.

And I can’t stress enough that you should be taking advantage of these perks. Me and my husband have taken 90% of our trips cashing in rewards points for plane tickets. It really does pay off.

The easiest way to rack up points is to use your credit card for everything. I know this may sound counter intuitive due to all the advice saying that you shouldn’t use credit cards. However, as long as you’re using the card responsibly (aka paying off the statement balance each month), then you’re not only borrowing free money but also earning free things.

There are numerous reward programs out there. So if travel points aren’t ideal, research and find options that offer cash back. Either way, stop throwing away free cash and start earning points today.

Avoid Fraud on Your Bank Account

This is more of a save money tip. But by using credit cards you can protect your actual cash and bank accounts from fraud.

Think about it. The more your bank account and debit card numbers are used, the more likely it is to fall into the wrong hands. Whether you pay online or in person, there’s a chance that your information could be compromised.

A way to protect yourself is to use credit cards instead. This way, if you do fall victim to fraud it will have a overall lower impact on your financial situation. Because instead of draining your checking account (which is likely tied to your savings), fraudsters only have access to your credit card. This means that while you are waiting to have any fraudulent charges returned, your bills will still get paid.

I’m in no way encouraging you to use credit cards to live outside of your means. But I am encouraging you to be smart use them to your advantage. You should also continue to maintain a budget and follow it each month to make sure that you don’t go overboard and are tracking your spending habits.

If you are wanting even more resources check out these additional resources. They are compiled with information and advice from financial professionals such as hedge fund managers, financial coaches and CPA’s. They include ebooks, printables, cheat sheets and more that are guaranteed to help you meet your financial goals.

Make sure you subscribe to our newsletter to stay up to date on the latest parenting news and trending topics. And follow us on Facebook for daily insights.

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Even before the COVID-19 pandemic took hold of the U.S economy, many Americans were overstretched with credit card debt. Delinquent credit card debt (payment late by more than 90 days) rose 5.32% in late 2019. And the average credit card debt per household was $8,398 heading into the spring.

If your income has gone down and you can’t make credit card payments, the debt can add up quickly. By recommendation of the Federal Deposit Insurance Commission (FDIC), most credit card companies are working with customers to provide relief options such as temporarily deferring payments, lowering payments, waiving late fees, interest-rate reduction, and payment plans.

But companies are also responding by pulling back on some balance transfer deals, tightening lending standards, and decreasing spending limits.

Even with those options, when you’re dealing with debt on multiple credit cards, you need to make a plan for tackling it in the most efficient way possible.

Best Strategies for Paying Off Credit Card Debt on Multiple Cards

There are three main methods of debt payoff you can consider: debt avalanche, debt snowball, and debt landslide.

Experts like Todd Christensen, author of “Everyday Money for Everyday People” and accredited financial counselor, recommend making the bare minimum payment on every account — except one.

Pro Tip

Using the debt avalanche method will save you the most money, because it gets rid of higher-interest debt first.

Debt avalanche

In the avalanche strategy, you’ll put all your focus on the account with the highest APR, or interest rate. Once that card is paid off, move onto the next highest-interest account. This method will save you the most money in interest charges over time.

Debt snowball

In this method, you’ll choose the account with the lowest balance and make higher payments only on that one (while paying the minimum on your other accounts), Christensen says. Once paid in full, the money you were putting toward that account can be used toward the next lowest balance. For each account you close, you can get a motivational boost to keep going toward your bigger targets.

Debt landslide

Figure out which account you most recently opened and focus on paying that one down first. This system will focus on paying off debt while also rebuilding your credit rating, since most credit scoring models give weight to payment activity on newer accounts.

Other Credit Card Pay Down Resources

Credit counseling services

Certified counseling services are available through the National Foundation for Credit Counseling (NFCC). Counselors will help you teach you how to reach a debt-free lifestyle by offering strategies for current credit card balances and avoiding future debt pitfalls.

Balance transfer credit cards

Taking the balance owed from one credit card and moving to another is one way to assist in paying down your credit card debt. Many balance transfer cards offer zero-interest on balance transfers for a set period of time. After the promotional period, you will incur interest on your balance — unless you’re debt free by then. Be aware, though: Many balance transfer deals are “drying up,” according to Ted Rossman, industry analyst at CreditCards.com. Due to COVID-19 and the economic recession, “card issuers are nervous” and discontinuing certain cards such as balance transfer cards. They are concerned “people won’t be able to pay them back, so they are not looking to take on new customers,” Rossman says.

Pitfalls to Watch Out For

Credit repair services

Not to be confused with credit counseling mentioned above, credit repair services offer to repair your credit in exchange for a fee. They will review your credit report and dispute errors and negative marks. However, you can access your credit report for free. You can also make disputes yourself for free using this dispute letter template.

Avoid missing payments

Late payments on your credit accounts can cost you more than you know. Payment history makes up 35% of your credit score, by far the most significant influence on your credit health. Always make at least the minimum payments or take advantage of deferment options to protect your credit score.

Low credit scores will affect many aspects of your life from insurance rates to the apartment of your dreams to the interest rate you’ll get down the road on your home or auto purchase.

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Approve Borrowers With Terms Based on Their Credit Score

Credit card companies approve applicants for rates and terms that change based on their credit scores. For example, should you have excellent credit (e.g., above a 720 score), you will typically receive the lowest interest rate and, possibly, a higher credit limit on your card. Lower credit scores receive higher interest rates and lower credit limits. Should you have only fair or poor credit, many credit card companies will reject your application. Others will approve your request, but offer much higher interest rates and low credit limits ($300 to $500 maximum).

Income From Interest and Finance Charges

Often used interchangeably, interest income and finance charges are sometimes a bit different with credit cards. Many credit card companies set different interest rates for different activities. Therefore, income may be a combination of a variety of interest rates and, when added together, become your finance charge for the current month. There are sometimes other conditions, like a “minimum” finance charge, that also may apply. Because most U.S. states require credit card companies to offer a “grace period”–e.g., 25 days, wherein should you pay your balance, no interest is due–many credit card companies mandate a minimum finance charge (e.g., 50 cents or $1) to cover some expenses of producing your monthly statement.

Credit card companies make additional income from their fee structure. These charges, often called “junk fees,” sometimes make significant money for credit card companies–and cost you more than your interest rate would suggest. Among the fees charged by some companies: membership fees, late payment fees, over-limit fees and balance transfer fees. When combined with higher interest rates charged for cash advances, overdue payments and exceeding your credit limit, these fees can significantly increase card company earnings.

Selling Products and Additional Services

If you have at least one credit card, you’re probably familiar with the “inserts” that come in each month’s statement. You typically receive “special offers” to purchase any number of third-party products and/or services, including loan payment “protection,” life or auto insurance, AD&D (accidental death or dismemberment) insurance or membership in buying clubs that promise the ability to buy products at a large discount in return for a monthly or annual fee. Credit card companies earn more money for every cardholder who purchases these products.

Selling Cardholder Information to Third Parties

Recent privacy regulations notwithstanding, many credit card companies sell their cardholders’ information to third parties to permit them to market products and services to you. You have the opportunity to “opt out” of this program by telling your card company you don’t want your information sold to anyone. But, for those cardholders who don’t do this, additional income comes to their credit card companies through this activity.

We all hoped that the COVID crisis would be over by now. But it isn’t. Six months after the first recorded death in the United States from COVID-19, infections are resurgent and it appears that life won’t be returning to normal anytime soon.

Now may be the time to consider if you need to make changes to your credit card strategy to include a card that’s more suited to the world we live in today.

What Is a ‘COVID Credit Card,’ Exactly?

No credit card issuers are marketing any of their products as “COVID Credit Cards.” But the phrase could be used to describe as a card that best meets the financial challenges Americans are facing during this unprecedented time. These challenges includes uncertainties surrounding their health, their income and their desire and ability to travel in the near future.

For example, people working in the industries most affected by the pandemic may be facing fluctuations in their income, and may benefit from having a credit card that offers them 0% APR promotional financing on new purchases, balance transfers or both.

On the other hand, those who have been earning travel rewards from their credit cards may wish to change their points strategy now that their travel has been indefinitely curtailed. Then there are those who may still want or need to travel, and are looking for benefits that will cover the cardholder and their traveling companions if their trip is cancelled or interrupted due to quarantine or sickness.

Best 0% APR Credit Card During COVID: Citi® Diamond Preferred®

This card can be ideal for those who have had their income disrupted and could benefit from one of the most valuable interest free financing offers currently available: Pay no interest until 2022 with this card’s 18 months of 0% APR financing on both new purchases and balance transfers.

The Citi Diamond Preferred card does have a a 3% balance transfer fee, but there’s no annual fee. Otherwise, this is a very simple credit card that offers no rewards and few cardholder benefits. But if you need to go the next year an a half without paying any interest charges, the drawbacks won’t matter much.

Best Credit Card for Cash Back and Miles: Citi® Double Cash

If you’re not traveling due to COVID-related concerns and restrictions, then you won’t have any need for frequent flyer miles. At the same time, you may be looking forward to when it’s safe to travel again, and you might want to retain some flexibility with your credit card rewards.

The Citi Double Cash has long been recognized as one of the best cash back rewards cards. You can earn 1% cash back when you make any purchases with the card, and another 1% cash back when you pay for your purchases, for a total of up to 2% back, with no limits.

But this card has another trick up its sleeve. If you’re dreaming of using your rewards to return to the skies in the future, you should know that you can redeem the cash back towards points in Citi’s ThankYou® points rewards program.

These points can then be transferred to miles with 16 different frequent flyer programs, including JetBlue, Air France/KLM, Singapore and Virgin Atlantic. You’ll receive one airline mile for every cent of cash back redeemed, and your miles can be worth much more than that when redeemed for expensive last-minute tickets or for seats in international business or first class. There’s no annual fee for this card, which also comes with 18 months of 0% APR financing on balance transfers, along with a 3% balance transfer fee.

Best Credit Card for Travel Benefits: Chase Sapphire Reserve

If you’ve already resumed traveling or you’re one of the few who never really stopped, then it would be good to have a credit card that can protect you if you or a companion is quarantined or contracts COVID. The Chase Sapphire Reserve offers $10,000 of trip cancellation and trip interruption coverage that covers loss caused by a range of problems, including both illness and any quarantine imposed by a physician for health reasons. It even offers $100,000 of emergency medical evacuation and transportation coverage if you need to return home for treatment. Other travel coverage that can be useful includes trip delay reimbursement, roadside assistance and rental car insurance.

The Sapphire Reserve offers 3x points per dollar spent on all travel and dining, and these Ultimate Rewards points are worth 1.5 cents towards reservations booked through Chase Travel. New applicants earn 50,000 bonus points after spending $4,000 on purchases within the first three months from account opening. There’s a $550 annual fee for this card, and no foreign transaction fees.

Bottom Line

We’re living in a different world than the one that existed at the beginning of the year, and it could be the right time to get a new credit card that reflect this new reality. By finding the right COVID credit card for your needs, you can be sure to have the best method of payment for as long as this pandemic persists.

How to Use Cash Back Portals to Make Money While You Shop

Cash back rebates are another way to save when you shop online. Thousands of online stores, from Amazon to Zale’s, will pay you to buy from them. To claim your cash, you need to become a member of a cash back portal site and make that purchase using the portal. You can join for free and in most cases, you’ll get a sign-up bonus, typically $5-$10. A cashback portal gets paid a commission from an affiliated retailer every time a member clicks through an offer on its site and makes a purchase. The portal splits its commission with the member. [NBC News]

Shopping on a cash back portal site may help you make some money while you shop

AmEx Is Paying Up to Get Businesses to Accept Its Cards

American Express wants more businesses to accept its cards. So it is paying them, sometimes in amounts approaching a half-million dollars. The company is offering sign-on bonuses to some businesses that don’t take its cards in a bid to catch up to rivals Visa and Mastercard. The payments range from under $10,000 to about $450,000. [The Wall Street Journal]

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Credit Card Debt Stressing You Out? You Aren’t Alone

According to a recent poll conducted by Morning Consult, close to half of American adults have credit card debt. Unfortunately, owing money on a credit card comes with more than just financial cost. The poll found that 60% of adults feel either some stress or a lot of stress about credit card debt, with 30% indicating that they worry a lot about what they owe. But stressing about money can also take a toll on your happiness. [The Motley Fool]

40% of Credit Card Debtors Have Higher Balances Than Over Past Decade

Nearly a third (31%) of credit cardholders hold higher card balances than they’ve had on average since 2009 amidst the Great Recession, according to the latest survey from Bankrate. The majority of cardholders feel about the same (44%) or less stressed (33%) about debt on their credit card, while only 23% are more stressed. [Bankrate]

Millions Sign Up for Mobile Payments-But How Many Stick Around Long Term?

Observers of mobile wallets have focused attention on user counts as a sign of adoption, but that leaves open the question of how many of these consumers are turning into habitual users. As it turns out, mobile-payments apps have a much harder time retaining users than do banking apps. Globally, just 16% of users on average return to a payment app the day after install, and 30 days later that number has dipped to just under 6%. [Digital Transactions]

Macy’s Said Hackers Stole Customers Credit Cards—Again

For the second time in as many years, Macy’s customers have been hit by a data breach involving countless numbers of credit cards. In a filing with the California attorney general, the retail giant said hackers siphoned off customers’ names, addresses, and phone numbers, but also credit card numbers, card verification codes, and expiration dates by inserting malicious code on its website and quietly sending the stolen data back to the hackers. Macy’s said the breach took place between October 7 and October 15. [Tech Crunch]

19% of Americans Don’t Know This Crucial Credit Card Detail

In an ideal world, the interest rate attached to your credit cards wouldn’t matter because you’d pay your bills in full every month. In reality, however, many Americans routinely rack up credit card debt by carrying a balance. A surprising number of Americans are clueless as to what that rate is. According to Northwestern Mutual’s 2019 Planning & Progress Study, 19% of U.S. consumers don’t know what their credit card interest rate is. [USA Today]

USAA Won $200M from Wells Fargo in Patent Fight. Will Others Be on the Hook?

A recent court decision in which Wells Fargo was ordered to pay $200 million to USAA for infringement of its patents on mobile deposit capture technology may have significant ripple effects across the industry. The technology at issue was developed by Mitek and is used by 6,500 other institutions. If the verdict stands, it may mean many other institutions will have to negotiate with USAA to pay additional licensing fees for their mobile deposit tech. [American Banker]

Mastercard Launches Urban Development Insights Tool for Cities

Mastercard is now offering a data-analytics tool it developed in the cities of Dublin, Chicago, London and Helsinki to its full network of more than 40 member cities. City Insights was initially piloted in a handful of cities, including in Dublin where it was used to assess how events and extreme weather could affect the local retail industry. Mastercard’s tool is advertised as a way for cities to gain timely insights into how their cities function. [State Scoop]

Your Capital One Card Could Snag a Hot OpenTable Spot

Your credit card could provide better access to restaurants through the real-time reservation network. Capital One has partnered with OpenTable to open the door for cardholders to dining hot spots nationwide through the Premium Access program. The program allocates some hard-to-get tables for cardholders. All Capital One cardholders can use this benefit, but only through the OpenTable app. [U.S. News]

Earn 500 Bonus Points with Your Contactless Chase Visa Card

Chase has come out with a new promotion for its cardholders, offering 500 points to customers who use its relatively new tap to pay feature. You earn 500 points when you use your contactless Chase Visa for three transactions totaling $1.75 or more. The offer is valid from Nov. 20 to Dec. 31, 2019. [The Points Guy]

Increase Your Credit Score With This 1 Trick

This one personal finance trick can help increase your credit score. A new study from TransUnion explored how debt consolidation loans impact consumer credit performance, overall debt load and credit health. TransUnion says that consolidating credit card debt with a personal loan can help increase your credit score by more than 20 points. The 20+ point credit score increase was consistent across the credit spectrum. [Forbes]

Steam is the one-stop destination for all video game lovers where you buy your desired games with a Steam credit or with a credit card. But if you are short on cash then there is another way to buy your favorite games on Steam! Any Guess? Hmm…Steam Trading Cards with which you can access the games you want to play. But how would you get those cards and how would you make money with them? Just scroll down and reveal.

How to make money from Steam Trading Cards?

What are the Steam Trading Cards?

Before earning money with Stram trading cards you must have the exact knowledge about them. When you play certain games on Steam then you get virtual cards that are referred to Steam Cards. Each card comes with a specific artwork that is developed by the developer of the game you have played. One of the best things about these cards is that you can sell them on the Steam community market and also exchange with your buddies.

But make sure you play such games that promise you to give trading cards in return. You can search for such games and play them in order to get those cards.

How you can acquire Steam Trading Cards?

Several ways exist to obtain these cards but our motive is to suggest the method with which you can avail them for free. You have to search for free games that supports trading cards. Here are the simplest steps to earn Steam trading cards to make money:

• First of all, open up Steam.
• Just hover your cursor over your username and click on Badges.
• Now you need to situate the games that support steam cards.
• After locating the game you have to click on Play.
• Start playing the game. If you don’t want to play the game then you can leave it running or also minimize the tab and still you will get cards.
• Whenever you get a card, you will notice a green-colored envelop symbol on the top right corner of the window, click on it to observe your earning.
• After obtaining the card you need to open it and here you will observe different options: Turn into gems, Sell, or Save. Choose whatever you want.

How to trade your Steam Trading Cards to earn money?

Voila..you have earned Steam cards and its time to use them to upgrade your Steam wallet. As I said above you can make badges with them or sell them to earn money. If you are willing to earn money with these cards then you have to follow these steps:

• Your initial move in order to sell your cards is to click on your Username and then inventory.
• Then choose the card you are willing to sell.
• Finally, click on Sell option.
• Now its time to enter the amount you want to charge for a particular Steam trading card and tap on “Okay, Put it up for sale”.
• Tap on Ok.
• Steam will send you an mail regarding your card sale so open up the mail and click on the link they have provided.
• Then tap on Confirmed selected.
• Congratulations…Your card is visible in the Steam market and when someone will buy it then you will get an mail.

Bottom lines

Like this, you can earn money with Steam Trading cards. Isn’t easy? I am going to open up Steam to earn money with these cards? Are you also going crazy to apply this method?

Folks if you found the post informative and get money after selling your Steam cards then don’t forget to share your experience with us. If you have still, any query regarding Steam Cards then let us know below in the comment section. We will get back to you soon with the best possible answer.

FinanceBuzz is reader-supported. We may receive compensation from the products and services mentioned in this story, but the opinions are the author’s own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Whether you were at a recent celebration or had to borrow money for an emergency, you’ve probably found yourself needing to pay your friends back at some point. If you don’t have enough cash on hand, don’t fret: You can pay a friend with a credit card, though it may cost you in fees.

3 ways to pay a friend with a credit card

If you’re looking for ways to pay back friends or family without pulling out your wallet or hitting up an ATM, just look at your phone.

There are a few apps to try out, and don’t be afraid to use more than one. Sometimes different friends have different apps, so if you want to make it easier on them, be versatile.

1. Cash App

The Cash App, formerly known as Square Cash, is free to download and accepts credit and debit cards. It’s the No. 1 money app in the App Store, with more than 35 million downloads.

You can send or request money using a $Cashtag, which is a unique identifier so you can make private and secure payments. You can use a credit card to send money, but there’s a 3% transaction fee. The app is free to use otherwise.

After downloading the app and creating an account, enter the dollar amount you want to send and set up who it goes to. The person you’re sending money to also needs the app, and you’ll have to enter their phone number, email, or $Cashtag to make sure your money gets to the right person.

2. Venmo

Venmo requires you to sign up for an account through Facebook or your email. But it’s free to use, and there’s no charge for transferring money with a debit card. There’s a 3% fee for sending money with a credit card, though.

Both you and the friend you’re sending money to need to have the Venmo app in order for you to send the payment.

One big differentiator is that Venmo allows you to view public transactions via a newsfeed. You can check up on what your friends and family are paying for, if they allow it to be public (there’s a private option on the transaction, if you choose).

3. PayPal

PayPal is one of the oldest services for electronically sending and requesting money. You’ll need to sign up for a free account and link a credit card to send money. Paying with a credit card will cost you 2.9% plus 30 cents for each transaction (or more, if there’s a currency conversion).

The friend you’re sending money to will also need a PayPal account. It’s a little less user-friendly compared to your other options, especially since PayPal offers so much more than sending electronic payments to friends. Most of its services are geared toward business.

3 ways to pay a friend with a debit card or bank account

While Cash App, Venmo, and PayPal all offer debit card transactions at no extra cost, they are the few that allow credit card payments as well.

If you don’t have a credit card or want to save on transaction fees, you have the option of adding a debit card or bank account to send money to friends.

1. Apple Pay

Earlier this year, Apple discontinued person-to-person credit card payments, but you can use debit cards to transfer money to someone else.

If you have an iPhone, you have a fairly instant way of sending money. In Messages, you can tap the Apple Pay button in a text conversation with the friend you want to send money to. Enter the amount, then approve the transaction using Touch ID or Face ID.

As long as your friend also has an eligible Apple device with a linked debit card or Apple Cash, the payment is seamless. Your debit card is added to your Apple Wallet so you can avoid manually entering card information when it comes time to send a payment.

2. Google Pay

The Google Pay app allows you to send money to anyone with a phone number or email address. If you’re sending money to another person, Google Pay only allows using a debit card or bank account.

The friend you’re sending money to doesn’t need the Google Pay app, but they’ll need a Google account. Your friend will get an email or text once the money is sent and will have to use their Google account to log in and claim their cash.

3. Zelle

To start using Zelle, you may not even need the app. If your bank or credit union allows you to send money with Zelle, you can use your bank’s app to do it. If your bank doesn’t offer Zelle, you can download the app to send money. (Check out Zelle’s full list of partners to see if your bank is eligible.)

The friend you’re sending money to doesn’t need to belong to the same bank as you for you to initiate the payment. If your friend already has Zelle (or their bank partners with Zelle), they can get their money within minutes. If they don’t have Zelle, they can download the app, sign up, and enter the banking information where they want the money to go.

Last updated on March 25th, 2018 at 09:36 am

Table of Contents

How to Get An Anonymous Usable Credit Card with Valid CVV

So today I am going to share to you a method where and how you can get an anonymous credit card which can be used on credit card purchases online or just use the credit card information on the account namely name, card number, CVV or 3 digit security code as well as expiry date. These cards are directly powered by the top leading credit card companies like VISA, Master Card and American Express so you do not need to worry about your card getting rejected due to fake details.

This is not your typical hack credit card with full details these are fresh credit card generator with name and other important details on it like security numbers expiration date and CVV. This acts like total real credit card numbers that work only on few websites that have less security.

Getting the card itself is very easy thing to do and requires no software to download or install. The full method is online-based you only need your PC or mobile and internet so start getting a usable credit card. Read the faqs below for more information about these cards.

• Is this safe to use?
  • You got here and asking for safe credit card? You must be joking. These cards are from anonymous supplier and we do not know how they got these type of credit cards.
• Does it have CVV or security code and Expiration date?
  • Yes they have honey.
• Am I able to use these type of Credit Cards?
  • Yes you can! We won’t give you card details that are being used by others or totally crap cards.
• Whats the catch? Are these FREE?
  • Pay nothing to get these cards and thank us later.
• How to use these cards?
  • You dumba$$ you get here and do not know how to use these cards? Go home!
• Finally, Will I get in trouble by using these cards?
  • That depends on what you are doing. For shady purposes be sure to remove your traces. But generally, you can refer on the answer above on the question “Is this safe to use?“.

Below are the credit card features and where and how you can use these type of cards. If you got here doing research you probably know what to do.

Features:

• Fully anonymous
• 100% Free to use
• Zero traces
• No software to download/install
• Get card with CVV or security code and expiration date
• Full card details like card number and account number
• Zero liability upon use of these cards

Instructions:

• Simply visit these website –
• Hover to “Get Cards” above

• And choose what type of card you want to get
• For VISA simply choose Visa Credit cards
• Put a name if you want default is “Auto” meaning an auto-generated name will be provided
• Choose how many cards you want to get
• Choose the origin of the card
• Choose compressed method
• Tick “Open country” to make it available to all countries
• Tick “Add $20 Balance” this feature is in beta mode so it may not work properly. However, 99% of our user reported its working.
• Finally click “I agree and continue“

• Wait for the process to finish

• Download your card. You might need to verify first to download the files. This is to prevent spam bots to use our website.

Don’t Sweat it!

As you could see, getting a usable credit card anonymously online is not hard! You simply need the wit how to get things done. And these website is powerful as ever! I have been using their cards for 4 months now and I don’t have a single issue.

Please leave right away if you are looking for free hacked credit cards with money on them because this is not for you.

Now you can easily generate any card as you wish! No need to pay for this..

Note that these cards are wont work like an actual credit card. They are randomly generated and do not hold any real life value.

What Is a Credit Card?

A credit card is a thin rectangular slab of plastic or metal issued by a financial company, that lets cardholders borrow funds with which to pay for goods and services. Credit cards impose the condition that cardholders pay back the borrowed money, plus interest, as well as any additional agreed-upon charges. An example of a credit card is the Chase Sapphire Reserve credit card which you can read our review of to get a good sense of all the various attributes of a credit card.

The credit company provider may also grant a line of credit (LOC) to cardholders, enabling them to borrow money in the form of cash advances. Issuers customarily pre-set borrowing limits, based on an individual’s credit rating. A vast majority of businesses let the customer make purchases with credit cards, which remain one of today’s most popular payment methodologies for buying consumer goods and services.

Credit Card

Understanding Credit Cards

Credit cards feature higher annual percentage rates (APRs) than other forms of consumer loans. Interest charges on the unpaid balance charged to the card are typically imposed one month after a purchase is made.

By law, credit card issuers must offer a grace period of at least 21 days before interest on purchases can begin to accrue. That’s why paying off balances before the grace period expires is a good practice when possible. It is also important to understand whether your issuer accrues interest daily or monthly, as the former translates into higher interest charges for as long as the balance is not paid. This is especially important to know if you’re looking to move your balance to a better card with a lower interest rate. Mistakenly switching from a monthly accrual card to a daily one may nullify the savings from a lower rate.

Individuals with poor credit histories often seek secured credit cards, which require cash deposits, that afford them commensurate lines of credit.

Types of Credit Cards

Most major credit cards, which include Visa, MasterCard, Discover, and American Express, are issued by banks, credit unions, or other financial institutions. Many credit cards attract customers by offering incentives such as airline miles, hotel room rentals, gift certificates to major retailers and cash back on purchases. These types of credit cards are generally referred to as rewards credit cards.

To generate customer loyalty, many retail establishments issue branded versions of major credit cards, with the store’s name emblazoned on the face of the cards. Although it’s typically easier for consumers to qualify for a store credit card than for a major credit card, store cards may only be used to make purchases from the issuing retailers, which may offer cardholders perks such as special discounts, promotional notices, or special sales.

Secured credit cards are a type of credit card where the cardholder secures the card with a security deposit. Such cards offer limited lines of credit that are equal in value to the security deposits, which are refunded after cardholders demonstrate repeated and responsible card usage. Also known as “prepaid” and “semi-secured” credit cards, these cards are frequently sought by individuals with poor credit histories.

Similar to a secured credit card, a prepaid debit card is a type of secured payment card, where the available funds match the money someone already has parked in a linked bank account. By contrast, unsecured credit cards do not require security deposits or collateral. These cards tend to offer higher lines of credit and lower interest rates on unpaid balances.

Building Credit History with Secured Credit Cards

Secured cards can help consumers rebuilt damaged credit while providing a way to make online purchases and eliminate the need to carry cash. But since secured cards report payments and purchasing activity to the major credit agencies, cardholders who use their card responsibly may be able to extend their lines of credit or upgrade to regular credit cards.

Written by Dan Base, Financial Content Writer

You could claim a refund if something goes wrong when you spend on your debit, prepaid or credit card. Here’s how the Chargeback scheme can get your money back from your bank.

What is the Chargeback scheme?

It is an arrangement offered by your debit, prepaid or credit card provider that can get you a refund if something goes wrong when you spend on your card.

You can get your money back through:

Your bank or building society if you use a debit card

Your credit card provider

Your prepaid card provider

What transactions does Chargeback cover?

It covers purchases of almost any value made on your card. You can use it to get your money back if:

A purchase does not arrive

The company you buy from goes bust

Goods or services are not as described or are in an unsatisfactory condition

You are charged more than agreed for a purchase or are charged more than once

Your card is used fraudulently

You can only use it if the retailer refuses to give you a refund or is unable to help.

How much can you get back?

You can claim back the full amount you have lost. For example:

If you order a phone worth £250 and it does not show up, you could claim £250

If you were charged £450 for a £250 phone, you could claim £200 back

There are no limits if you have a Visa or American Express card. MasterCard have set a minimum claim amount of £10, so purchases for less than £10 are not covered.

Is it the same as Section 75?

No, the Chargeback scheme plugs the gaps in Section 75’s protection by offering:

Protection for debit card and prepaid card transactions

Protection for credit card transactions of any value, whereas Section 75 only works if your purchase costs £100 to £30,000

Unlike Section 75 , the Chargeback scheme is not enforced by law. It is a voluntary agreement between credit card providers and card issuers ( Visa, MasterCard and American Express ), who set the scheme rules.

The following card types offer Chargeback protection:

What is Section 75?

When you use a credit card to pay for goods or services worth between £100 and £30,000, you are protected by law if the company you use goes under, or if you do not receive what you have paid for.

Section 75 does not apply when you use your debit card, or when you buy something for less than £100, or over £30,000, on your credit card.

Can you use Chargeback for credit card purchases of £100 – £30,000?

Yes, you can use the Chargeback scheme however much you have spent on your credit card. However, if you spent £100 to £30,000, you can use Section 75 protection to get a refund.

This will usually give you a much better chance of getting your money back because Section 75 is legally binding, but Chargeback is just an agreement between card providers and issuers.

Transactions not covered by Chargeback

You can only use the scheme if you paid on your card – not if you withdraw cash and use that to pay for something.

You cannot claim if too much time has passed or you bought through some third parties like PayPal.

Time limits

To make a Chargeback claim you will need to contact your card provider within their time limit – usually 120 days after discovering the problem. If you made the purchase in person, the 120 day period starts from the date of the transaction.

With online purchases, this date is usually the delivery date of your order.

The time limit on making your Chargeback claim depends on which company issue your card:

MasterCard: You need to start your claim no more than 120 days after your transaction went wrong

Visa: Within 120 days of the transaction going wrong (or 180 days for an overseas transaction)

American Express: Within three months of the transaction

You can claim after these periods if you bought a service that will be used in the future, like flights or concert tickets. In these cases, the time limit would start from your flight’s departure date or the date of the concert, although you would need to claim within 540 days of when you paid.

Using PayPal

The Chargeback scheme does not usually apply when you use PayPal because your card transaction is with PayPal rather than the seller.

If you use PayPal and do not receive your goods or services as promised, you can claim by opening a dispute through PayPal .

If this does not work you may be able to make a claim through the Chargeback scheme. However as there is no legal obligation to return your money, the outcome will be up to your card provider.

How to make Chargeback claim

First you need to try to resolve the issue with the retailer before you can complete a Chargeback request. Contact them by phone, post, email or in person to try to get your money back.

If the retailer refuses to give you a refund, you can start a Chargeback claim:

Contact your provider (by phone or by visiting a branch) and tell them that you want to make a claim through the Chargeback scheme

Give full details of the transaction you want refunded

If required, provide them with copies of any correspondence you had when you tried to get your money back from the seller, including letters, emails and records of phone calls.

Some banks will ask you to complete a claim form, but others just take details of the transaction and start the claim for you.

Does your bank know what Chargeback is?

The person you speak to at your bank may be unaware of the Chargeback scheme because it is not as well known as Section 75 protection.

If so, ask to speak with a supervisor or suggest they check with a manager, who can tell them the procedure for the Chargeback scheme.

How long will it take to get your money back?

When you raise a Chargeback request, your bank should let you know how long it will take.

This will vary depending on which bank you use and how straightforward your claim is.

Some banks will re-credit your account straight away, but reserve the right to take the money back if your claim is unsuccessful. Others will investigate the claim before crediting your account.

What if your claim is rejected?

If your request is rejected you are entitled to be told why.

If you feel that their decision is unfair you can complain to the bank . If they still refuse your claim you have six months to take your case to the Financial Ombudsman , who may overturn the bank’s decision.

However, you cannot take your bank or card provider to court because offering the Chargeback scheme is not a legal requirement.

You can get more help and advice on making a complaint from the Resolver website .

Find the best credit card for you, whether you’re looking for 0% card for balance transfers or purchases or day to day spending and rewards

Visa and Mastercard don’t actually issue credit cards. Here’s a rundown of their business model.

Although a Visa (NYSE:V) or Mastercard (NYSE:MA) logo may be on some of the credit or debit cards in your wallet, these two companies don’t actually issue any of these cards themselves. Instead, Visa and Mastercard serve as middlemen in the payment transaction process.

In this clip from Industry Focus: Financials, host Shannon Jones and Fool.com contributor Matt Frankel discuss how payment processors like Visa and Mastercard generate their revenue.

A full transcript follows the video.

This video was recorded on July 30, 2018.

Shannon Jones: How do Visa and Mastercard actually make money?

Matt Frankel: First of all, I only need to really run down one business model, because both of these companies are 95% the same business. The one thing that, especially new investors to these companies are interested to find out is that these are not the companies that actually issue credit cards. These are what are known as payment processors.

There are generally four parties that are involved in a payments transaction. There’s the issuing bank that actually loans money to the customer through their credit card. If you have a Bank of America credit card in your wallet, a Capital One credit card, these are the issuing banks. Then, you have the payment processor, like Visa or Mastercard. Then, you have the merchant. And then, finally, you have the merchant’s bank. It’s called a four-party payments system. Visa and Mastercard are just the middlemen between the issuing banks that are lending the money and the merchants and the merchants’ banks that are receiving the money.

There are three main ways that Visa and Mastercard make their money. Of course, it’s a little more complicated than we can get into in a relatively short podcast. But, the main categories are service revenue, which are also known as swipe fees. Every time you swipe your credit card at a point-of-sale terminal, Visa or Mastercard or whoever is backing your card gets a small cut of whatever that revenue is. A long time ago, when I actually helped run a business, it was in the neighborhood of 1%, a little more than 1% for Visa and Mastercard. So, they get a percentage of every transaction, which known as service revenue.

They also get what’s called data processing revenue, which is a small, fixed amount that they get for things like actually transferring the money from one place to another, providing settlement data to a merchant, things like that. Then, there’s also what’s called international revenues, which are, if your credit card charges you a foreign exchange fee, or something to that effect. Any time that a credit card is used outside of its main area, you get a nice, additional, international revenue stream, if it has to deal with currency exchanges or convenience fees, those sorts of things.

Jones: Really, for companies like Visa and Mastercard, volume is where the money is at. The more transactions they process, the more revenue they make. The goal, of course, is to extend their network, especially internationally, which is key. Really, the more banks and partnerships that they’re able to sign on board, the better, as well.

We are committed to full transparency in our mission to make the world smarter, happier, & richer. Offers on The Ascent may be from our partners – it’s how we make money – and we have not reviewed all available products and offers. That transparency to you is core to our editorial integrity, which isn’t influenced by compensation.

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Want to know the secret to getting the best credit cards? Follow these steps.

Image source: Getty Images

Credit card issuers want to make you feel like your fate is in their hands when you apply for a new credit card, but you have more power than you realize. By understanding how credit card companies make money and what factors they look at when evaluating applications, you can take steps to have them fighting for a place in your wallet. Here’s what you need to do.

1. Keep your credit score high

The single biggest factor that can qualify you for the best credit cards is your credit score. This is a measure of your financial responsibility, and it’s crucial to credit card issuers because if you were to declare bankruptcy, they’d lose all the money they’d lent you. A high credit score tells credit card companies that this outcome is unlikely because you’ve demonstrated responsible money management in the past.

There are several credit scoring models, and you won’t know which the credit card issuer is using. But all of them tend to look at the same factors, including:

• Payment history
• Credit utilization ratio (the percent of available credit you use)
• Length of credit history
• Credit mix (credit cards, mortgage, auto loan, etc.)
• Number of credit card inquiries

If you want credit card companies to offer you their most exclusive cards, you need to excel in all of these areas. Always pay your bills on time, don’t apply for new credit too often because too many inquiries on your reports raises a red flag, and think twice before closing down unused credit accounts because they could reduce your average account age. You should also aim to keep your credit utilization ratio under 30%, and the lower the better.

Most credit scoring models use a scoring system that ranges from 300 to 850, with a higher number being better. While lenders may differ in what they consider an acceptable score, most consider a good score to be about 700 to 750 and an excellent score to be 750 or above. If you have an excellent score, credit card companies will be more interested in working with you because there’s very little chance they won’t get their money back.

2. Boost your income

Credit card issuers usually ask you to report your income when considering your application because they want to make sure you have enough money coming in to cover your payments each month. They also use this information to set your credit limit. It’s illegal to lie on your application and say you make more money than you do, but if you can legitimately increase your income by pursuing a promotion or starting a side hustle, this will open new doors for you.

When determining your income for the sake of a credit card application, include money you make from a full- or part-time job, investment or retirement income, and alimony or child support payments. If you’re married, you can also count your spouse’s income.

But it’s not income alone that matters. If you have monthly debt payments that are almost equal to your monthly income, credit card companies are going to be leery because there’s an increased chance that you could default. But if you keep your debt-to-income ratio as low as possible — and preferably under 30% — a high income can help get you access to premium credit cards with rare perks and high credit limits.

3. Charge a lot to your credit cards — but not too much

Credit card issuers make money every time you swipe your credit card, so the more you use the card, the happier they will be. While most credit cards don’t impose limits on how much you must charge to your card, some of the most exclusive, invitation-only credit cards are only available to cardholders who spend a certain amount.

Be careful not to spend more than you can afford to pay back at the end of the month, though, or you’ll carry a balance. This will accrue interest daily and once you fall into that cycle of debt, it can be difficult to get out.

4. Negotiate

If you want companies to actually fight for a place in your wallet, it doesn’t hurt to make them think you’re willing to walk away. If they think there’s a chance they’ll lose you to a competitor, most companies will negotiate fees, interest rates, credit limits, and even reward terms.

Call the company and tell them what you want. Highlight your loyalty if you’ve been with the company for several years, and don’t be afraid to bring up deals that other card issuers have offered you as leverage. You may be surprised by what you can get.

Sit back and reap the rewards

If you do the four things listed above, you stand a good chance of being approved for just about every credit card you apply for. You’ll get access to the most exclusive rewards credit cards, including high cash-back-rewards-earning rates, airline credits, travel concierge services, exclusive gifts, and more.

But with premium cards come premium fees, so think carefully before signing up for one of these. If you don’t think you’ll spend enough to justify the annual fee, you’re better off going with a no-annual fee credit card.

Don’t pay credit card interest until nearly 2022

The Ascent just released a free credit card guide that could help you pay off credit card debt once and for all. Inside, you’ll uncover a simple debt-cutting strategy that could save you $1,863 in interest charges paying off $10,000 of debt. Best yet, you can get started in just three minutes!

Are you looking to sell products or services online? You’ll probably want to know how to accept credit cards. Luckily, it’s quite easy to get started with credit card payments and you don’t need to have a merchant account if you don’t want to.

The advantages of accepting credit cards on your website

You might be wondering if you even need to have the option for payment via credit card on your site. Some sites I’ve seen only offer Paypal or debit cards as a payment option. But there are a few reasons why you might want to extend the payment options.

1. It adds legitimacy. Simply by having that Visa or Mastercard logo on your site, you’re instantly saying “Hey, I’m trustworthy!” to your visitors. They are well known around the world and it definitely helps to build trust with first time buyers who might never have heard of your site before.
2. Sell to international customers. Foreign people have cash too, y’know! Accepting credit cards means that you can sell into any country in the world (as long as you want to ship to them) and accept payments online with no problems whatsoever. Imagine all those extra potential customers!
3. It’s faster. Your customer can enter their credit card number and within a few seconds be checked out and ready to receive the goods. With other options like Paypal there are extra steps like logging in, confirming the amount again etc. Some people might not make it to the end, so getting the payment by credit card quickly is a huge bonuse.

Which method should you use to accept credit card payments?

There are two different ways to take payments via credit card and each has their advantages. I’ve only ever accepted them through a third party, and not through a merchant account. Let’s look at the differences:

Credit card payments through a third party. For a small fee, there are companies that will accept credit card payments for you and handle all the merchant account type stuff. They’re sometimes called payment gateways and are the easiest way to get started.

• Easy to get started.
• You don’t need a merchant account.
• Let’s you test the water quickly.
• The process is handled entirely by the third-party.
• Higher transaction fees.
• Less chance of fraud or chargebacks.

Payments through a merchant account. For this method, you need your bank to set up a merchant account that you can use to take payments through. There are fees, but they are usually lower than through a third party.

• Better for larger merchants.
• More control.
• Lower transaction fees.
• Higher likelihood of credit card fraud or chargebacks.

Personally, I tend to choose third-party payment processing. It’s just easier.

How to accept credit cards with payment gateways.

Okay, so if you decide to go the payment gateway / third party merchant route then there are quite a few to choose from. I haven’t used all of these myself (I only use Paypal) but these are all reputable gateways or marketplaces that you can sell products online with and take credit card payments.

• Paypal. Some people hate Paypal (and at times, I do too) but they are universally recognised and do offer a good service. No setup or monthly costs, invoicing tools, simple installation on your site, low fees, fraud reduction, and near instant access to your money are all top notch.
• MyCommerce. MyCommerce have a very robust system with LOTS of options to choose from. They even have an affiliate network so others can sell your products for you. Definitely worth checking out.
• Authorize.net. Probably one of the most well known online payment gateways and used by over 375,000 people. Their pricing is a monthly fee/setup and then as little as $0.10 per transaction.
• CCNow. Very low setup fees and just $0.40 per transaction make CCNow a great choice for selling physical goods or digital goods. Oh, and it integrates with WordPress too – which I love. Learn how to setup WordPress in my guide. 😉
• CCBill. These guys get recommended as well online. I’ve never used them and can’t find a chart of their pricing so you’ll have to contact them for more info.
• Kagi. Selling downloadable software? Then Kagi might be a good choice for taking credit card payments.
• Clickbank. One of the biggest digital product marketplaces in the world. If you have an ebook, video course or online membership program this might be a great choice. They have an army of affiliates too that can drive a huge amount of traffic and sales.

Putting an order form or shopping cart onto your site.

Getting your payment processing setup is the easy bit when it comes to accepting credit card payments. Actually taking the payments is a little more work. Not much, but some.

Most of the payment processing gateways above with give you a little piece of code to copy and paste into your website. I use Paypal, and they make it very easy to set up.

If you have shopping cart software or use WordPress with a shopping plugin then you can speak to the company who make the software. Chances are that there will be a way to integrate your credit card payments into it – especially if it’s popular software.

I’ll do a step by step guide on how to accept credit cards with Paypal soon to show you how I personally do it. Subscribe to the newsletter if you want to be notified when it goes live.

So, to summarise…

If you’re selling online then you definitely want to accept credit cards as part of your user experience. People expect it, you’ll get more sales, and you’ll look more professional too. Which is always a bonus!

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Sending in bi-weekly payments to your credit cards is a little-known way to save money and get out of debt for good. Here’s how it works.

Table of Contents

How to Make Bi-Weekly Payments

Assume you have $5,000 on a credit card with an interest rate of 17%. If you only pay the minimum each month, you will end up taking 14 years to pay off your debt – and pay $4,119 in interest.

On the other hand, you can use the bi-weekly payment method. To start simply send it your $150 minimum due before the due date. Then scrounge up some extra money for a second payment.

If you can make another payment of $75 every two weeks, you will end up paying your debt in only 3 years. This will cut the interest payments to a total of $2,521. And you will save a total of $1,598 of credit card interest payment. This is 39% less than the interest cost of just making the minimum payment.

Why it Works

The way this works is fairly simple. Each half payment every two weeks winds up with 26 payments a year. That means you’re paying the equivalent of 13 monthly payments instead of 12.

Basically, the entire extra month will go to pay off the balance, not interest.

The bi-weekly payment method is easy to implement because you’re paying exactly the same amount of money, just spreading it out.

Your credit card companies are also required to accept your payments whenever they receive them and credit them properly, so you don’t have to worry about your credit card company not giving you the benefit of bi-weekly payments.

Start with High Interest Cards First

The system works best if you start with your highest interest credit card. Make sure your first, full payment posts well before the due date. If you can, pay online to ensure a timely payment.

After that, all you need to do is send in a half payment every 14 days. And as long as your statements don’t show any fees you can’t account for, ignore your statements.

As long as your payments arrive on time every 14 days to your card issuer, you’re using the system flawlessly. You will cut the time you’ll need to repay your debt tremendously – and save a ton of money on credit card interest payments.

A great way to ensure your payments go out every 14 days is to sign up for an electronic transfer with your bank or credit card company. This will automatically take out the required half-payment every 2 weeks and send it as a payment to your credit card account.

To read more about bi-weekly payments to your credit cards, read Todays’s article, “Lower credit card debt with biweekly payments.”