How to make money with a credit card
If you want to make money with a credit card, you can only make full use of the interest-free period. Cardholders can enjoy the longest interest-free period when swiping their cards for consumption on the second day of the statement date. . Generally, there are 50 days. Cardholders can use these 50 days to do some investment and financial management, and maybe they can get good returns. Generally, when cardholders make major purchases, it is more cost-effective to use the interest-free period for financial management.
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1. Annual fee. Competition in the bank credit card market is also fierce now. Most banks will reduce or reduce the total amount or number of card transactions and earn it in the form of handling fees. Credit card Credit Card Swiping Fees Credit card swiping fees will be deducted. This fee is mainly shared by the card issuing bank, UnionPay and the acquiring bank. The card issuing bank will charge between 0.36 and 0.48, which is a huge benefit. Interest, overdue repayment will charge high interest, usually charged at 0.05/day, with interest calculated on a daily basis and compound interest calculated on a monthly basis. Installment fee: When the cardholder repays the loan in installments, he or she will need to pay a certain installment fee. It is also the main way to make money. Other income, such as cash withdrawal fees, loss report fees, SMS function fees, etc.
2. Among the several key points of bank credit card income, the main source is: card swiping fees. Therefore, most cardholders want to keep their credit card limits stable or increase their limits. It must be that we swipe the card and the bank can get the benefits it deserves. It’s not that we can make money just by swiping cards at banks. The type of credit card swiping is important. For standard merchants who swipe their cards, the bank will earn fees normally. Credit card discounts are popular among public welfare merchants (that is, code skipping), and banks make less or no money at all. The current industry situation is to close self-selected merchants. The best thing is to match the merchant's schedule, swipe the card accurately to exit the merchant, prevent merchants from jumping randomly, and avoid bank risk control. Simulate real consumption by swiping cards at diversified merchant types, improve the overall score of credit cards, and increase the credit card limit.
3. Users are the biggest resource. Every bank hopes to have as many resources as possible. In order to seize the credit card market, banks now have opened up card application rights to the outside world, which means that we can apply for cards through certain platforms and get commissions. As long as you have enough ability to sell more credit cards, there is no need to worry about making no money, and the commissions on credit cards are quite high, with the highest price being 500 yuan per card. As we all know, the function of a credit card is that you can overdraw part of the funds in advance for use. It is this part of the funds that has unlimited possibilities. Many people will choose to invest their credit card money and use their own money for daily consumption. As long as they have the ability to manage and invest money, they can choose to maintain a card first and then use the money for financial management. However, the risk of doing so is still relatively high, so it is best to act within your capabilities.
How credit cards make money from cardholders
1. Interest income from credit cards
The interest paid by cardholders for overdrawing their credit limit is a credit card The main component of business revenue. If the cardholder repays the minimum payment amount overdue, interest will accrue, with a daily interest rate of 0.5%.
2. Credit card annual fee income
Over the past year, most of the credit card management fee income collected by banks from cardholders has been used for platinum cards, diamond cards or certain cards that are not exempt from annual fees. Special credit card for fees. This part of the income is also a regular source of income from bank credit cards.
3. The benefits and penalties of cash withdrawals by credit card.
When credit card customers withdraw cash, even if they have extra money (i.e. overpayment), they have to pay a cash withdrawal fee. This fee is the bank’s cash withdrawal income; The late payment fees generated, or the over-limit fees generated by using the card beyond the limit, are the bank's punitive income.
4. It is credit card business income
The fees paid by customers for installment business are bank fee income. The installment business has been very popular in recent years, and banks naturally like the installment business for cardholders. The more installment customers there are, the higher the income will be.
5. Other income
Expenses for card replacement, loss reporting, etc. This proportion is smaller.
6. Credit card swiping fees
When customers shop at a merchant, the merchant will allocate a certain proportion of the transaction amount to the bank. Of course, this part has nothing to do with the cardholder.
How to make money with a credit card?
It is possible to make money with credit cards. I personally feel that the best way is to earn subsidies and new platform rewards. The income is okay.
In order to quickly acquire users, many third-party payment companies will launch very strong subsidy activities. In the past, they provided subsidies for card swiping fees. Now that the market competition is fierce, subsidies are also rising all the time. Cardholders’ Not only can you earn back the card swiping fees through subsidies, but you can also get more subsidies by swiping more and earning more.
If you find a good new platform, you can get tens to hundreds of subsidies for 10,000 turnovers. If you make 100,000 turnovers a month, you can also get thousands of subsidy benefits. Of course, the subsidies are definitely not unlimited. The platform also spends money on activities. Once the total subsidy is burned out, it will be gone. It is often first-come-first-served, and the more you spend, the more you get.
1. Earn points by swiping your card
2. Go bank shopping (many banks have activities, among which CITIC and Ping An I know are better ones)
3. Set up financial management with an annual interest rate of about 4-5%
How to use credit cards to make money
The methods of using credit cards to make money are as follows:
1. Participate in more credit cards Bank activities, such as discounts at designated merchants, discount coupons, and gifts for accumulated consumption, etc.
2. Credit cards have a certain interest-free period. If you make a purchase one day after the bill date, you can enjoy up to 50 days of interest-free. You can make good use of this time to manage your finances and gain profits.
3. Use credit card points to redeem points. Credit cards generally have points after payment. Points can be exchanged for some airline miles, coupons, some platform memberships, commodities, etc.
For more information on how to use credit cards to make money, go to: View more content
That’s it for the introduction of how to make money with credit cards.