Most people think of credit cards as an extra source of income they can use when they don’t have cash in the bank, but in reality, credit cards can be used to make money. If you use a credit card properly and pay your total balance each month, you can earn extra cash back or travel rewards to use when you’re short on cash or want a free vacation. Here are some expenses that it is smart to use your credit card on to rack up those bonus points:

  • Daily expenses: If you already spend money on coffee or lunch every day, why not put those expenses on your credit card and then pay off the balance with the money you were going to use? That way, you get cash back or travel points for money you were going to spend anyway.
  • Monthly bills: The same logic can be applied to your monthly bills. Use your credit card to pay off your electric or phone bill, and then use the money you set aside to pay your bills to pay your credit card balance, and reap the rewards.
  • Reoccurring purchases: Instead of writing a check for your groceries or to fill up your tank, use your credit card to pay for these and then pay off your bill at the end of the month.

If you aren’t great with money and don’t know if you can hold on to the cash until the end of the month, go online and pay your bill whenever you make a purchase. You can never be penalized for paying too often.

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