Here are the best credit cards for free reward money:
Blue Cash Preferred: Initial bonus of $300 statement credit for spending $3,000 in the first 6 months, and 1 - 6% cash back on purchases normally, with U.S. supermarkets (on the first $6,000 spent each year), U.S. streaming services, U.S. gas stations, and transit expenses among the categories earning bonus rewards. Cash back is paid out in the form of statement credits. Annual fee: $0 intro 1st yr, $95 after.
Capital One Savor: $300 initial bonus after spending $3,000 in 3 months, and 1 - 4% cash back on purchases normally. $95 annual fee.
Overall, those looking for a big chunk of change should probably go with the biggest initial bonus, as long as you can hit the spending requirement. In that department, the Blue Cash Preferred has the most bang for your spending buck.
In my book, a free reward money credit card should be a top cash back credit card.
I'd go with the Capital One Savor for unlimited 4% cash back on dining, entertainment and popular streaming services, 3% back at grocery stores and 1% back on all other purchases, as well as 8% back on tickets at Vivid Seats through January 2023.
Another interesting option is the Citi Double Cash Card, because you earn 2% cash back on all purchases, 1% when you buy and 1% as you make payments for those purchases.
Cash back's generally the best kind of reward, because a dollar's going to be a dollar, no matter when you receive it. With this card, you can just have the cash added to your checking account, and then go nuts.I do hope you have the card already tho, because this one's discontinued and you can't apply for it anymore.… read full answer
The easiest way to make money with credit cards is by earning rewards, particularly cash back rewards and big signup bonuses. So long as you use a cash back credit card for purchases you were going to make anyway, and then pay your bill in full to avoid interest, you’re getting free money back. Same goes for credit card signup bonuses: As long as the spending requirement is money you would’ve spent in that timeframe anyway, the bonus is free money.… read full answer
Other ways to make money with credit cards, at least indirectly, include peer-to-peer lending. Nevertheless, taking full advantage of rewards remains the easiest, most reliable way to make money with credit cards, as you can discover in greater detail below.
Here’s how to Make Money with Credit Cards:
Get a cash back credit card.
Any rewards credit card will reduce the cost of the purchases that you make, but cash back credit cards make it easiest to make money. Cash rewards cards give you cash back on purchases that you can redeem for statement credits, personal checks and/or bank account deposits. You can also set up automatic cash back redemption, so that once your earnings hit a certain amount, they’re cashed out according to your preferences.
The average cash back credit card gives a little more than 1% cash back on purchases, but you can find cards with higher earning rates. Check out the best cash back credit cards to see which will make you the most money.
Earn a credit card signup bonus.
Many of the best rewards credit cards come with high signup bonuses for meeting a minimum spending requirement in the first 1-3 months. For example, you could make $150 to $500+ from rewards bonuses without spending more than you would otherwise, just by using the right card.
Once you earn the signup bonus, one redemption option is to apply it directly to your credit card bill to cover purchases you’ve made. You might also be able to redeem for a check, bank account deposit, gift cards, travel, merchandise and more, depending on the card, if you’d rather save money another way.
Cash in credit card points/miles.
The simplest way to cash in your points or miles is by using them to pay for purchases that you’ve charged to your card. You basically get those purchases for free. Most credit card issuers will let you apply your rewards to past purchases, usually at a rate of a bit more than 1 cent per 1 point/mile.
You can also cash in rewards for gift cards to the places you shop at most. Another option to make money is to sell your rewards to friends or family members, but that’s a bit trickier.
Buy gift cards with a bonus rewards card.
Some credit cards offer bonus rewards on groceries. That would create the opportunity to buy general-purpose gift cards – like Visa gift cards, which can be used anywhere. There are fees for buying card-network gift cards, depending on the value of the gift card.
Try peer-to-peer lending.
Peer-to-peer lending is exactly what it sounds like: lending money to your peers. Essentially, you finance someone else’s personal loan and get paid back with interest. One of the reasons people take out personal loans is to refinance credit card debt. If you become a lender on a peer-to-peer lending site (such as LendingClub), you can give money to people who are looking to pay off credit card bills, and then personally reap the rewards of their interest payments.
However, this is really only worthwhile if you have extra money you don’t need at the moment and are willing to get repaid over the course of months or years. There’s also some risk your loan won’t ever be paid back in full.
Using credit cards strategically provides unique opportunities for cardholders to make money. For example, applying for a new card with a signup bonus during a time when you’ll be making large purchases can put extra money in your pocket without much effort.
However, using a credit card irresponsibly just to earn more rewards won’t be worth it. If you don’t pay your credit card bill in full each month, high interest rates will quickly eat away at your earnings. And if you start missing payments, your credit score will suffer.
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