Have you ever thought how it would be if every time you shop you add benefits which may come back to you like a reward? This can be made true by using ones credit card to shop. As the quantum of shopping increases, your rewards increases and rewards are provided for the same. This is one way to earn passive income on the lines of ‘spend more and get more’. Let us analyze the ways in which one can earn through credit card rewards and cash back.
The Thumb Rule
One must be aware that there are different types of credit cards available namely silver, gold, platinum and signature. These variants differ based on the banks. In most cases for every purchase, the points will be distributed over fifties or hundreds of the entire denomination. For instance you spend $250 and if the distribution is in fifties then you earn 5 points. An accumulation is done over a period of time and based on how many such points you have earned, you can reap benefits accordingly.
How One Must Use It?
When you receive your credit card, make sure to read all the documents that come with it. There will be a booklet that gives explicit information on how you can double your points or in simple words it can explain how to seek maximum advantage. Most cards give you special advantages if you fill up gas at a particular gas station or if you book your cinema tickets through a particular website or purchase your groceries from a particular store or to book your flight through a particular website. Ensure not to deviate from these particular service providers. This will help you achieve maximum utilization viz maximum reward points over a given period of time.
Again the reward point systems work differently for different type of cards that you hold. In all cards the basis of calculation remains the same. The difference will be in the number of reward points at each level. Say for silver card holders every spending worth hundred bucks may earn 1 reward point, for gold it could be two reward points and as the type of card held goes up, so do the points earned.
Another pleasant information is that if a person gets to spend on special occasions, then the points may increase based on the offer at that point in time. Therefore it is always important to keep oneself abreast of what happens in the credit card usage segment.
How to Redeem Reward Points?
One can redeem the points they have earned through online or by calling the respective bank’s customer care. The best way to get this done is through online where one can see the various options that are available to redeem their points. By redemption what is meant here is that one can purchase a product or an offer for free by giving up all or part of the reward points. By doing this one gets back to the zero level where the process starts from the beginning.
Earning through credit card rewards and cash back is the simplest and easiest way to earn passive income. Shop more and earn more.