How We Make Money with Credit Cards Every Month

We make money with credit cards every month and never pay interest or any fees. You can easily do it too with just a few simple steps.

Quick overview: 

1. Credit card without annual fees (see my suggestions our favorite cards below
2. Credit card with reward points
3. Use your credit card wisely, only spend money you actually have
4. Pay off your balance in full every month

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Credit Card without Annual Fees

The first step is to pick a new credit card without annual fees. There are so many out there that don’t require annual fees, it doesn’t make sense at this point to use one that does charge a fee. 

A few of the credit card companies that offer cards without fees include Chase, Citi Bank, and Capital One.

Always make sure that before you sign up for a credit card that there isn’t a fee. Even the credit card companies above do have some with annual fees and some without annual fees, so be sure to choose the one without!

Our favorite credit card is the Chase Freedom card. 

Do keep in mind that when applying for a new credit card they will run a credit history to see if you’re eligible. If you do this for too many cards at a time, it can reflect negatively on your credit history and credit score. However, if it’s just a card here and there, it shouldn’t be an issue. I’ve never noticed a dip in my credit score after applying for a new credit card, granted, I don’t do so more than once every few years, typically less often. 

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Credit Card with Reward Points

Once you’ve found a new credit card that doesn’t have annual fees, ensure it has reward points that offer cashback rewards or statement credit!

Some credit card companies offer reward points when you make purchases whereas there are also travel rewards credit cards. We prefer reward points which we can redeem for cash or as a statement credit.

Earning reward points on purchases you were going to make anyway means you’re getting free money (as long as you follow my other steps below).

You also may come across credit cards that offer gift cards instead of cash back. This is fine as well as long as you’ll use the gift cards to buy the things that you actually need, not just taking this as an excuse to spend more money. I mean…I guess it’s up to you but that’s how I see it. 

Now, if you take this as a reason to spend more money to earn more points, that’s doing it wrong and you won’t get the full benefit. Only use it for things you were already going to buy and for what you can afford. Which leads me to…

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Use the Credit Card Wisely

The biggest step in actually making money when using credit cards is to never pay late fees or interest charges. 

The way to do this is to ONLY purchase what you actually have money in your bank account for. Don’t go into debt buying what you don’t have the money for. 

Always read through or at least skim the fine print about late payment fees, cash advance fees, foreign transaction fees, and more that may apply to you. If you pay off your credit card in full every month before the due date, you shouldn’t run into any fees but you’ll only know that for sure if you read the financial institution’s terms,  which leads me to…

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Pay Off Your Card in Full Monthly

In order to never pay fees or interest you have to pay off your credit card in FULL every month when your credit card payments are due. If you don’t pay it in full then you’ll have to pay interest and possibly incur additional fees such as late payment fees and interest charges. 

If you go through life just paying the minimum payment every month, that’s how you get into trouble and get hit with all the credit card fees. 

When you pay in full every month before the due date, you don’t have to worry about late payment fees, the annual percentage rate, or going into credit card debt.

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Use Reward Points Wisely

Another key to this is to use your reward points to pay off your credit card, i.e. a statement credit, or redeem the points for cash that goes directly into your bank account. 

Even though this is ‘free money’ in a sense, don’t buy stuff you don’t need with it. Treat it as any other income into your bank account and spend wisely. We just roll ours into the rest of our income and overall budget accounting for the income but not using it any special way or depending on it. 

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Credit Card Bonuses

There are many more benefits of different credit cards out there such as balance transfer offers for new credit cards, an interest-free period,  welcome offers during an introductory period and more credit card rewards. These are all great as long as you use them wisely and keep the above steps in mind. Not spending more than you have in your bank account, paying off your credit card in full at the end of every billing cycle, and avoid any late fees or interest charges. 

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Everyday Spending

We use our credit cards for everyday spending from groceries to toilet paper to clothing for the kids and more. We have a primary credit card that we use for anything and everything as well as a couple back up cards in case the original one is stolen/compromised somehow (which has happened) or if there are special bonuses that month on something we already were going to purchase. 

By using credit cards wisely, we not only earn cash back every month when we pay off our balance in full before the due date but also is a great way to raise our credit score. 

Though we have lived on just one income since I left my career in 2017, we budget and spend our money wisely to the point our home mortgage is our only debt, which we’re likely going to pay off several years early at this point. 

I want this for you too which is why I started this blog.

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Financial Advisor

If you want personalized advice to your situation, I suggest contacting a financial advisor to gain more insight for your unique situation. I’m not a CPA or financial advisor, just a mom sharing my tips on how to live comfortably on one income with 3 kids. A financial advisor will have more insight for you in terms of picking the right credit card for you, and whether you should delve into credit cards or not.

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