Abstract: With the changes in everyone’s consumption philosophy, early consumption has become the choice of many young people today. While credit cards bring convenience to our lives, they also bring us many opportunities. In this day and age where credit cards are everywhere, how do you use credit cards to make money and manage money? Some people may have questions, can you still make money with a credit card? Of course, as long as you use the right credit card, you can get all kinds of wool at your disposal. Let’s take a look at how to make money with credit cards. Strategies for making money with credit cards 1. Participate in various preferential activities of banks. Nowadays, credit card issuing banks are also very competitive, so various discounts are emerging in an endless stream, such as card application gifts, card swiping discounts, event discounts, etc. There are also some food, drink and entertainment cards that allow you to enjoy discounts when spending at partner merchants. With these offers, what you save is what you earn.
2. Take advantage of the interest-free period of credit cards. The biggest advantage of credit cards is the interest-free period of the credit card. Most of the interest-free periods of various banks are about 50 days. During the interest-free period, no fees will be incurred for swiping the card. It is equivalent to the bank giving us money for free.
So making money by using the interest-free period of credit cards is to make time generate value, use the bank's money for consumption, keep your own money for investment, and return the money to the bank when the credit card's interest-free period comes. During the credit card interest-free period, any income you earn with your own funds belongs to you.
3. No deposit required for pre-authorization. Generally, when we stay in a hotel or rent a car, we need to pay a certain deposit. In a credit card, there is a "pre-authorization". To put it simply, when we pay the deposit, we don’t need to take money out of our pockets, but a part of the amount is directly frozen as a deposit. Final settlement is based on actual consumption.
4. Credit card points are used for credit card purchases. If the merchant's POS machine has a UnionPay standard rate of 0.6, then the bank will give back a certain number of points to the cardholder as a reward after each purchase. Credit card points can be redeemed at the bank's points mall, and can be redeemed for various daily necessities and various coupons. So credit card points are money.
For people who often need to go out, it is a great deal to redeem points for air miles. The redemption rules are different for each bank's credit card, so check the card yourself if necessary. For example, some bank cardholders can reward up to 10 times the points after spending.
5. Credit card merchant discounts In order to encourage cardholders to spend more, banks will jointly launch some activities with cooperative merchants or platforms from time to time. As long as you participate and meet the activity requirements, you can get rewards from the bank. Your rewards, this is also one of the ways to make money and save money with credit cards. For example, banks cooperate with some of these Internet platforms to participate in preferential activities, and you can also enjoy the platform's discounts, exemptions, and VIP benefits.
6. Help friends or companies purchase/pay on behalf of friends. Use all opportunities to help friends or companies purchase and pay on behalf of others. If you have such an opportunity, you will always help enthusiastically. After receiving the cash, use Use cash to manage your finances, earn income, and redeem your credit card when due.
7. Recommend others to apply for credit cards. Now every bank has activities to reward cash for recommending new people. As long as you have a new account and can make a lot of money, ask them to write your recommendation code or mobile phone Just number.
Risks of credit card cashing in financial management 1. Is cashing out with a credit card illegal? If the circumstances of cashing out a credit card are serious, it is suspected of constituting the crime of illegal business operations. Because the essential characteristic of credit card cash-out is to directly convert the credit limit in the credit card into cash through deception. Cash-out merchants collude with cardholders to use credit cards to conduct false transactions, which actually disrupts and infringes on the financial order. In serious cases, it involves money laundering, so the country will crack down severely.
For cardholders, there is generally no criminal liability, but if it is a malicious overdraft, it will still constitute a crime of credit card fraud.
2. What are the penalties (1) Anyone who maliciously overdrafts or operates illegally, and the amount of cash out is between 10,000 yuan and 100,000 yuan, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined for more than 20,000 yuan, 20 Fines of up to 10,000 yuan.
(2) Anyone with a credit card cash-out limit between 100,000 yuan and 1 million yuan shall be sentenced to a fixed-term imprisonment of not less than five years but not more than 10 years, and a fine of not less than 50,000 yuan but not more than 500,000 yuan.
(3) Anyone with a credit card cash limit of more than 1 million shall be sentenced to fixed-term imprisonment of more than ten years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan, or have personal property confiscated.
How do banks make money through credit cards? 1. The card swiping fee is smooth. When we swipe a card to make a purchase, the merchant will pay the bank a channel fee of 0.55 for each transaction. For example, if you spend 10,000 yuan by swiping your card, the merchant will return 55 yuan to the bank. Choosing a merchant with a low rate every time is subject to risk control, which means you will face the risk of having your card derated and blocked.
2. Interest income users must pay at least an annualized interest of 16-18% to the bank once they use a credit card for installment repayment or minimum repayment. Both installment repayment and minimum repayment are calculated based on the total principal amount. If you pay in installments, no matter how many months you repay, the interest is calculated based on the total principal amount.