Since we have only been able to apply for credit cards in our country, they are very popular. Today, more and more people have “plastic money” in their portfolios and, as statistics show, the number of credit cards among Poles is constantly growing. However, many people still think that this is a very expensive loan product that can lead to our domestic budget being ruined. Are they right? After all, any loan or loan taken irresponsibly may lead to bankruptcy. It may also contribute to a credit card. But if we use it in a thoughtful way, it is not enough that we will not lose, but we will be able to earn it. How to do it? We will suggest in this text.
How a credit card works
A credit card is a credit product, so we need to meet a number of conditions to get it. This applies to creditworthiness, credit history, etc. If our credit card application has been approved, we will get a card that is virtually nothing different from the debit card that is assigned to our account. However, to use a credit card, we do not need to have a bank account because we do not use your money. The bank grants us a limit on the card to which we can debit. Using the card, we can choose money from an ATM or pay for it in stores at home or online stores. Every month, the bank sends us an excerpt from the transactions and tells us how much we have to pay back. Of course, we can pay off more, which will make us able to use the card again, because part of our limit will be “unlocked”.
Earn money on the interest-free period
The first way by which we can make money on the card is the so-called “Interest-free period”. Every bank probably offers it, although it is not the same in every case. Usually, it ranges from 52 to 57 days, although these numbers may change. What is the interest-free period? This is the time given to us by the bank, during which interest is not accrued on the money we borrowed from the bank. But to avoid paying interest, we have to meet several conditions. First of all, our card must be used for non-cash transactions. So we can pay for purchases in stationary or online stores. The second condition is the repayment of all debt during the interest-free period. So how can we make money on the interest-free period? We can keep our money on our savings account or deposit, and pay for the money “borrowed” from the bank for shopping. As you know deposits or savings account are interest-bearing and bring us some profit. And this profit is just our income on the card.
Cards with cashback
More and more banks give us the opportunity to apply for credit cards with cashback. Thanks to this, we can obtain partial refunds for our purchases. Sometimes they are refunds for all purchases, sometimes only for a given assortment (fuel, medicines). This money is usually charged once a month and is credited to our account. Another option is to collect points for purchases made using the shopping card. Then we can exchange them for material prizes, airline tickets, etc.
How not to waste on a credit card
However, we must remember that in order to make money on the card, we must use it properly. First of all, we must remember that the “loan” is usually very high interest. Therefore, if we use ATM cash to choose from it, or if we do not use the interest-free period properly, we can pay high interest for using it. It is also very important to actively use the card. If we do not do this, the bank may charge us for having “plastic”. The same will be the case when we will make transfers from your credit card. Usually, it will involve a few percent charge plus high interest rates.
Using a credit card in a “reasonable” way, we can take advantage of it a lot. Therefore, let us not be afraid to apply for it and use it to earn money from it.