I am delighted to say that I am a credit card deadbeat! In fact, some of you might already be credit card deadbeats too, if so, I commend you for your excellent work! Now, as for those who don’t know what a credit card deadbeat is, before you start thinking I have a screw loose, you may want to continue reading!
When I say that I am a credit card deadbeat, I don’t mean that I avoid my credit card bills. To the contrary, a credit card deadbeat is the insider term used by credit card company executives and refers to all of the credit card users who pay off their bill each month promptly; in doing so, such customers pay no interest and prevent the creditor from making any profit! That’s me! I love being a credit card deadbeat!
The alternative to being a credit card deadbeat is what credit card executives call a revolver. A revolver is a credit card user that constantly carries a balance and is charged regular, monthly interest on their charges. Credit card companies love revolvers because they, in essence, increase the bottom line for the credit card company and make them a nice profit. Further, from an insider perspective, the best customers not only carry a balance, but also make their payments late, triggering extra fees and a higher interest rate.
Okay, so I’ve been a credit card deadbeat for awhile now, but last year I went even further in improved my deadbeat ways. Not only did I hang onto my hard earned cash by refusing to line the wallets of the credit card companies, but I also happily lined my own wallet with their money, to the tune of $1,402. Yes, that’s right, they paid me $1,402 to use their cards; continue reading to find out how!
Cash Back Credit Card
First, I applied online for a Cash Back Credit Card and I was instantly approved. My new cash back credit card arrived to my house the following week ready for me to use. This card offered me 0% APR for 12 months and carried no annual fee; With it, I made all of my gas purchases, as well as grocery and drugstore purchases and earned 5% back cash back on the gas purchases and 1% back on all other purchases. I have a family of four and the gas purchases included gas for my spouse’s car as well. 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 Drugstore Purchases $160 x .01 = 1.60
Total Cash Back Earnings From Credit Card $ 29.85 x 12 = $358.20
Airline Rewards Credit Card
I also applied for an airline rewards credit card and again was 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, on my new Airline Rewards Credit Card. As a result, the qualified expenses came to an average of $2,250 monthly or $27,000 for the year, earning 27,000 frequent flyer miles, more than enough for an airline ticket to Hawaii: a $500 value!
0% Introductory APR for 12 Months
Now here’s the kicker. Since both credit cards came with a 0% introductory APR for 12 months, I paid only the minimum payments on each card and placed the money for my purchases into a savings account earning 2.5% (rates have gone up since). Using averages for simplicity, I made 12 monthly deposits of $3,935 into a savings account earning 2.5% interest compounded monthly. By the end of the year, I earned $544 in interest!
My Total Credit Card Earnings for the Year
So here is my total earnings from the cash back credit card, airline rewards card, and interest earned.
Cash Back 12 x 29.85 = $358
Free Airline Ticket $500
Savings Account Interest $544
Total Earned $1,402
Just to make sure I maintain my deadbeat ways, now that the 0% introductory rate has expired, I’ve paid off my balance from the money I deposited into my savings account during the year. To be a credit card deadbeat you need persistence, determination, and discipline. I did it, and so can you!
Every bank is people friendly, and they have a variety of credit cards to assist people in case of emergencies or untoward situations. You can select any card suitable to your lifestyle and their customer-friendly executives are always at your beck-and-call for assistance. All the cards have cash back schemes, reward points and offers any time of the year. Having a credit card offers you the convenience of making one payment compared to paying cash for various services.
Yes, selecting the best card is a challenging task, but not an impossible one. If your job involves going on tours, a travel card offering discounts on hotel bookings and flight tickets will be the best option. Also, you have the option of paying by this card instead of paying by cash in a foreign land. If you are one who shops regularly, a card offering discounts on popular labels, electronics at suitable outlets will be the best option.
In an unforeseen-emergency, you can make the payment, but can have the big amount changed to EMIs. Repayment is mandatory, however, you can schedule the payment as per your convenience after going through the guidelines.
Some of the card fans opine the monthly c.statement to a diary where you do not have to note the purchase items. An option is also available where the purchases can be easily sorted.
Making regular payments on your dues automatically rewards you with a good credit score. A wonderful track record will always assist you in securing a loan.
Forget the past of standing in long queues at a bank; you can apply for your favourite credit card in the comfort of your home or office. Make a visit to the website, browse the required column and select your favourite card. The personal details have to be filled as required and then click the "Apply" option. The next step is to keep ready the copies of Identity proof, Income proof and address proof for the verification process.
Handling expenses is difficult, but more challenging is the task of paying bills. The world is in your fingertips provided you know how to handle technical gadgets and have a credit card. You do not have to step out of your home to pay bills of any category, be it electricity, mobile recharge and other requirements.
Live hassle free and avail of the Mobile Bill Pay option of the Bank. Ensure you do the right clicks, update correct information and the bill. You have done your part to Mother Nature by saving paper and making the best use of your time.
The internet has given rise to cyber criminals who make use of every opportunity to swindle money at your cost. However, all the credit cards are safely protected as they have an EMV chip (also protected by PIN) by which every transaction is made secure. The chip cuts down drastically any possibilities of skimming and counterfeit fraud transactions.
You can use the card to access airport lounges (for a nominal fee), shop online for clothes, gadgets, book tickets of your favourite shows etc. Similar to every credit card, you will receive an SMS instantly after a transaction to the mobile number registered in the directory.
You can also withdraw cash at any ATMs in the world (however, you have to inform the bank for some credit cards about going to a foreign country). Fees will be applicable as per the guidelines. Payment by card just got better with these points.
• Booking by credit card gives you discounts on movie tickets and outside dining.
• Depending on the card, you will get refunds for fuel surcharges.
• Family members of primary card holders do not have to pay fees for becoming an add-on member.
• Joining fees may be waived if you make a purchase of a particular amount or above using the card.
You should have attained the age of 18 years or older
You should maintain a minimum amount as per the requirements of the credit card
If you are applying for a credit card the first time, you have to provide proof of your income, address. In case you already have an account, your KYC information will be checked once again for authenticity.