I am delighted to say that I am a credit card sucker! In fact, some of you may already be credit card lazy, if so, then I congratulate you on your excellent work! Now for those of you who don’t know what a dormant credit card is, before you start thinking I have a screw loose, you might want to read on!
When I say I’m a credit card worthless, I don’t mean I avoid my credit card bills. In contrast, a dormant credit card is the internal term used by credit card company executives and refers to all credit card users who pay their bill promptly each month; By doing so, such clients pay no interest and prevent the creditor from making a profit. That’s me! I love being a credit card sucker!
The alternative to being a credit card worthless is what credit card executives call a gun. A revolver is a credit card user who constantly carries a balance and is charged regular monthly interest on his charges. Credit card companies love revolvers because, in essence, they increase the bottom line of the credit card company and bring them a good profit. Also, from an internal perspective, the best clients not only have a balance, but they also delay their payments, leading to additional fees and a higher interest rate.
Okay, I’ve been a credit card bum for a while, but last year I went even further in improving my style. Not only did I hold onto my hard-earned money by refusing to fill the wallets of the credit card companies, but I also happily filled my own wallet with their money, to the tune of $ 1,402. Yes, it’s true, they paid me $ 1,402 to use their cards; Read on to find out how!
Credit card with cash back
First, I applied online for a cash back credit card and was instantly approved. My new cash back credit card arrived at my house the following week ready to use. This card offered me 0% APR for 12 months and had no annual fee; With it, I made all my gas purchases as well as grocery and pharmacy purchases and got 5% cash back on gas purchases and 1% on all other purchases. I have a family of four and gas purchases also included gas for my spouse’s car. My average monthly purchases and cash back earnings were as follows:
Monthly gas purchases $ 325 x .05 = $ 16.25
Monthly grocery bill $ 1,200 x .01 = $ 12.00
Monthly purchases in pharmacies $ 160 x .01 = 1.60
Total Credit Card Cash Back Earnings $ 29.85 x 12 = $ 358.20
Airline Rewards Credit Card
I also applied for an airline rewards credit card and was again instantly approved online. Like the cash back credit card, my new airline rewards credit card arrived the following week, came with a 0% introductory APR for 12 months, and had no annual fee. This credit card earns 1 frequent flyer mile for every $ 1 charged.
I charged many of my miscellaneous expenses, including major purchases and business expenses, onto my new Airline Rewards credit card. As a result, qualified expenses averaged $ 2,250 per month or $ 27,000 per year, earning 27,000 frequent flyer miles, more than enough for a plane ticket to Hawaii – a value of $ 500!
0% introductory APR for 12 months
Now here’s the catch. Since both credit cards came with a 0% introductory APR for 12 months, I paid only the minimum payments on each card and put the money from my purchases into a savings account that was earning 2.5% (rates have since gone up ). Using averages for simplicity, I made 12 monthly deposits of $ 3,935 into a savings account that earned 2.5% interest compounded monthly. At the end of the year, I earned $ 544 in interest!
My total credit card earnings for the year
So here are my total earnings for the cash back credit card, airline rewards card, and interest earned.
Cashback 12 x 29.85 = $ 358
Free plane ticket $ 500
Savings account interest $ 544
Total earned $ 1,402
Just to make sure I keep my roads idle, now that the 0% introductory rate has expired, I have paid my balance with the money I deposited into my savings account during the year. Being a credit card useless takes perseverance, determination, and discipline. I did it so you can too!