How to make money on credit cards and why they are needed

In pursuit of my post about that how to keep money and where, I decided to briefly write about the credit card in thisscheme, or rather how to earn money on credit cards. This concerns not only being at home, but also abroad. Earnings will be small, but the ruble is there, the ruble is there and we get a good profit for the whole with a minimum of effort. In addition, the credit card is also convenient, the main thing is to use it skillfully and not to pay interest on the loan. Otherwise, it is better to take a loan, and the interest on credit cards is completely inadequate.

The content of the article

Why do you need a credit card

  • While you are borrowingyour funds are on deposit and bring you income. This is especially true if your spending on the card is large. Obviously, if you use a little card, then the profit will not be very.
  • When traveling while booking a car over the Internet, the distributor blocks a deposit of 20-50 thousand rubles. In my opinion, this is inconvenient, if your funds are blocked, it is better to be credit.
  • No need for 1-1.5 months to think about the balance on the card, you just spend the credit limit. I used to transfer money from a deposit once a week to a debit card, because I won’t put all the planned amount there at once.
  • If suddenly the store turned out that you need moremoney, for example, turned up a large purchase, you do not need to run to an ATM or home for a cache, everything is on a credit card. Similarly, it is important to travel, if any payment is delayed, but the money is needed now.

Thus, you can use a credit cardboth sporadically and constantly. And with the right approach, you will not pay anything beyond the amount spent, I mean, you do not need to pay interest on the loan. Those negative reviews about credit cards that people write usually come down to the fact that such a bank took a furious interest, although, supposedly, it was overdue for just one day. This is fundamentally the wrong approach, credit cards for loans are not intended! In addition, you must always read the terms of the contract if you are going to get into a loan, and not spend more than what you can recover.

By the way, do not think that banks issue creditcards at a loss, no. Just the credit card usage scheme here is not used by most. On the contrary, everything is calculated on the fact that a person starts all serious and will get a loan on the very thing.

My cards

I already wrote about what cards I have in a post about bank cards for abroad, but here I will repeat a bit specifically about credit cards.

how to make money on credit cards

I originally made a homecredit cashback credit cardGold with cashback 3%. This card was very profitable until the bank changed the internal conversion rate, which recently is just hellish. Now it is beneficial only for Russia because of cashback. However, I will not dwell in detail, because they are no longer issued, and you still do not issue it.

Then I ordered Tinkoff AllAirlines (for thisthe invitation link will get 1000 miles as a gift) with a cashback of 2% for everything and 5-10% for tickets / hotels. There cashback miles, but if you penetrate, then they really spend on tickets, checked. Tinkoff has a regular Platinum credit card with 1% cash back cash, it is easier to learn, but less profitable, I ended up closing it.

It is generally convenient to have several products in onebank, I have a debit in Tinkoff, and deposits. Unfortunately, there are less and less profitable credit cards due to the crisis, and besides, not all banks want to issue them to me (since I am an individual entrepreneur), and Tinkoff gives out to everyone without quirks. In any case, which bank to choose a credit card is up to you.

How to make money on credit cards

  • During the use of loan funds, yours are on deposit and generate income.
  • You get cashback for purchases of 1-5%.
  • Money from a credit card can be cashed and put on deposit.

Listed above, officially and legally. The last option is becoming less available, the essence of it is that you need to somehow withdraw credit funds in cash or on another account to put them on deposit or somewhere else. It's one thing when you have a credit limit of only 10-20-30 thousand, another, when it is 300 or 500 thousand, or even a few credit cards with large limits. Such an amount, even on a monthly deposit, can bring a noticeable amount. As far as I know, before everything was much simpler, and these schemes were on the surface (through the Qiwi payment system), but now what lies in the public domain does not work.

Alternatively, you can pay for your friends, and from them to get cash on hand :) For example, a friend wanted to buy a laptop for 30 thousand, so you can shove a 30 thousand deposit, and get a cashback bonus. But this is already, children's fun.

How to use a credit card correctly

Basic terms

Grace. Interest-free period, grace period. Usually it is 55 days. This is the time when you can use credit funds for the detriment of your budget, that is, for free. But not all operations fall into grace. For example, cash withdrawals, replenishment of electronic wallets, in most banks, means departure from grace. Moreover, there is such a rare situation when the terminal in the store is set up as cash withdrawal, and not as payment for goods, but you won’t know about it in advance. Interbank transfer is also not available for credit cards.

Credit limit. The maximum amount you can spend on a credit card. The amount of the credit limit is set by the bank individually, depending on your credit history, the salary of the future cardholder and the bank itself. For example, Tinkoff easily issues cards and often without income certificates.

Annual maintenance. Most credit cards have annual service fees, and more than debit cards. But there are also credit cards with free service, according to the type of credit cards of Homecredit bank.

Cashback. Many credit cards offer cashback. In order not to repeat, read about cashback cards, there I wrote about it in more detail.

SMS fee Almost always SMS notifications are paid and can be waived, then the choice is yours. The main thing is not to forget to repay this amount, even if you did not use the card.

Credit insurance. Banks are trying to impose a loan insurance service. If you use it, then any interest will be paid on any interest, so it’s best to refuse this service.

Two main rules for using a credit card

  • Never withdraw cash from a credit card. The fact is that cash withdrawals often take place with a commission of 3-6% (the first one is paid), and the free period does not apply to the withdrawn amount (the second one). That is, you immediately get on the commission, and get into a loan at interest. But there are credit card offers, where the withdrawal fee is fixed or 1-2%, and the grace period applies to cash. Thus, most often the credit card is intended only for payment in stores.
  • It is necessary to pay off the debt at the end of the grace period free of charge, not later. Actually, due to this, the free use of borrowed funds is achieved.

These are two general rules that are fair tomost credit cards. But for each card, before using it, it is necessary to clarify all the nuances, and not only from the bank, but also on the banks.Ru forum in the credit card section. It was there that everything that was collected was collected, and that you would sometimes look in vain on the bank’s website.

I will give an example. Usually the free period for credit cards is 55 days. But when using the Homecredit Cashback Gold card, you need to pay off the debt after 30 days. Yes, you can do it for 50 days, but then you have to pay a fee for using the card at 250 rubles per month. It is thus trying to take annual maintenance, because it is free (subject to repayment in the first 30 days). But the collective intelligence of the forum did not stop at this, but deduced that if spending in 30 days exceeded 45,500 rubles, then you can safely go into a paid grace. That is, it will be more profitable to pay 250 rubles, than not to pay, provided that your money is on deposit.

The use of credit cards in detail

Just in case, I will explain separately. During your free grace period, you use credit funds in the amount that you can easily repay, because in this context a credit card is not considered as an analogue loan. While you use borrowed funds, your own money lies on a replenishable withdrawn deposit, that is, from where you can withdraw it at any time. Sometimes it is convenient to keep a deposit in the same bank as a credit card. Then it will be possible to repay the debt in the same Internet bank, without an interbank transfer fee, and on weekends when transfers work only inside banks.

A reasonable question is when it is better to pay off debt. You can extinguish it in the penultimate-last day of the grace period, but one important thing must be understood. Suppose you have a grace period of 55 days. But in fact, you have only a month to empty the card, if you use this card continuously from month to month.

It is considered so. You spend money during the month from April 1st to April 30th (billing period). At the end of the month, you are billed and given 25 days to pay off, until May 25 (billing period). Thus, we have a total of 55 days. But! If you have already spent your credit limit, for example, 100 thousand rubles in April, then you will not be able to use it again in May until you repay the debt. Moreover, if you repay the debt only on May 25, then in fact you will have only 5 days left until the end of the month to use the entire credit limit again, because at the end of May you will again be billed for repayment. Or, in another way, you can say how much you deposit in May, as much as you can in May and spend, but by May 25, you have to repay everything in order not to fall on interest. I think it is clear that if you use the whole or a significant part of the credit limit, it is easier to pay off the debt immediately after the invoice is issued (that is, once a month) in order to have 30 days to use the card again.

Sometimes it is considered different, for example, the billing period does not start from the 1st, but from the first purchase on the card.

P.S. Please note that this is not all information. It is necessary to clarify the conditions for specific credit cards.

Life hacking 1 - how to buy a good insurance

Choosing insurance is now unrealistically difficult, so to help all travelers, I compile a rating. To do this, I constantly monitor forums, study insurance contracts and use insurance by myself.

Insurance Rating

Life hacking 2 - how to find a hotel 20% cheaper

First, choose a hotel on Booking. They have a good offer base, but the prices are NOT the best! The same hotel can often be found 20% cheaper in other systems through the RoomGuru service.

Discount hotels

Leave a reply