Cashing In on Credit Cards

David had earned $1,100.00 by using his credit card to pay for his business expenses. 1. $150.00 sign-up bonus from credit card 2. $75.00 5% cash back bonus from credit card 3. $100.00 from opening a checking account 4. $100.00 from opening a savings account 5. $25.00 interest from $5,000.00 6. $50.00 retention bonus from credit card 7. $600.00 1% cash back bonus from credit card A couple of months later, David had gotten a new idea on how to make more money from credit cards. We will see David again in chapter 12.............. Through her intellect, Diane saved $1,493.75. The original cost of the braces was $3,400.00. Because she paid cash instead of financing, the cost of the braces was reduced by $200.00. The next savings came from the credit card Diane used once, and then she canceled. This credit card company contributed $150.00 to the braces. The big bonus came from the first credit card, Diane had used for eighteen months. This amounted to $943.75. The last credit card added a $200.00 savings to the cost of the braces. Starting Cost $3,400.00 Cash Discount -$200.00 Sign-up Bonus -$150.00 First Credit Card -$943.75 Last Credit Card -$200.00 Total Cost $1,906.25 Diane only paid $1,906.25 for something that cost $3,400.00. Wasn’t she shrewd?............. David earned $7,232.00 off of the credit card company’s money! Instead of paying his bills with his checking account and his debit card, he used his credit card. He then either carried a balance with 0.0% financing, or he paid off the credit card balance entirely. He never paid an annual fee. He never paid a transfer fee. He never paid any interest. The credit card company made money off of the merchants. David made money off of the credit card. Both parties in this agreement made money. Both parties made money by moving money around. That is easy money............ Christy earned $160.00 using her credit card to pay for her college expenses. Her Dad is impressed. Dad is not the easiest man to please. Christy is very proud of herself. Christy repeats this scenario every semester. She receives a new credit card with a bonus after making so much in purchases. One semester Christy received a $300.00 bonus! Her Dad now takes advantage of these offers.