The optimum way to astutely use credit cards is to view them as a convenient tool to bolster your credit rating, whilst offering an interest free grace period. This allows your money to be working for you elsewhere until the balance is required to be paid in full. Turning a profit from the right credit card is a natural progression and there are several ways you can do so. The card issuers are careful to ensure you can rarely use several methods to profit at the same time.
The most obvious way to make a profit from a credit card is to utilize the interest free period on purchases. Ensuring that all normal monthly expenditure goes through a credit card with an introductory zero per cent rate, allows the funds to be invested for growth until the introductory period expires.
By establishing an automated payment to meet the minimum payment in full each month you can make all your purchases interest free for between 6 to 18 months. Naturally it is crucial that the total balance is paid off in full before the introductory period expires.
There are currently several credit cards which offer extended zero per cent APR’s. The Citi Platinum Select MasterCard offers zero percent for 18 months on purchases, as does the Citi Diamond Preferred Card. Slate from Chase also offers zero percent for 18 months on purchases, whilst Capital One Platinum Prestige offers zero per cent until May 2012.
It is also easy to turn a profit by taking advantage of cash back offers by again putting all normal expenditure onto a credit card. If they don’t offer a zero percent APR on purchases then ensure that the balance is paid off in full each month. Cards with ARP’s pf zero percent will still require minimum payments making on time.
It is possible to combine a zero percent card with a cash back card, but the card issuers will offer a shorter introductory period in order to discourage consumers from taking advantage. Nevertheless there are two credit cards available which fit the bill. The Discover More credit card offers zero percent on purchases for 12 months combined with a one percent unlimited cash back offer. There is also a five per cent bonus in certain areas of spending. The Chase Freedom Visa Card offers the best cash back deal but the zero per cent introductory rate is limited to six months.
Chase do offer a very inviting $100 cash back statement credit to customers who spend $500 on purchases within the first three months, and six months interest free credit allows a reasonable time frame to earn some interest.
If cash backs appeal there are several cards which offer statement credits and cash backs, and as long as applications for new cards are spaced out it then it won’t impact upon your credit score.