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 donâ€™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 donâ€™t mean that Iavoid 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! Thatâ€™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, thatâ€™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 spouseâ€™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 hereâ€™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, Iâ€™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!
Copyright Â® 2005 Stephanie Andrews
About The Author: Stephanie Andrews is a contributing editor for https://www.credit-card-surplus.com , a well organized credit card
directory enabling the user to compare and apply for offers including https://www.credit-card-surplus.com/cashback.php https://www.credit-card-surplus.com/airline.php
Article Source: All Things Pondered