Critical First Step – become a credit card DEADBEAT. The credit card companies see people that pay their full balance each moth as DEADBEATs because they make little to no money on you. If you have any credit card debt, pay it off before reading further. If you are prone to carrying a balance on your credit cards, then this article is probably not for you. Once you commit to becoming a credit card DEADBEAT you are ready to for the next step.
Second Step – Apply for a new credit card that has a BIG sign-up incentive (if possible, look to combine multiple offers). In my article, “Make $80 in 5 minutes” I explained how I combined two offers to make $80. Right now credit card companies are offering HUGE incentives. Find the card that has the best upfront incentive and sign-up. You should easily be able to make $50. To really cash-in, sign-up for multiple cards with cash-back incentives. (One caution – avoid cards with an annual fee)
Third Step – For ongoing purchases, use cards with cash-back programs. Discover Card has a great cash back program that offers up to 20% back on purchases. For my kids’ 529 plans, we use the upromise card. This card also offers a great cash-back program. I’ve received up to 30% back on purchases with upromise.
Fourth Step – A DOUBLE bonus. Discover will increase your cash-back if you apply it towards gifts cards from preferred vendors. Preferred Vendors Include: Sears, Lowes, Amazon, Khols, LL Bean, Lands’ End, Banana Rep, GAP…and many more.
In Conclusion – Credit Card DEADBEATs using cash back cards can add thousands to their wealth. We added more than $1,000 to our 529 plans with upromise (since 2004). In addition, we’ve averaged between $250 – $1,000 per year with our other cash-back cards. For 2009, we plan to have the best year yet taking advantage of all the amazing sign-on bonuses available.