Though January can often be a month of promise and new resolutions, it can also be a cash-strapped period for those who may have been a little too enthusiastic in their holiday spending. Sadly, while your need to escape the winter doldrums with a trip, some fine-dining or a day at the spa may be at an all time high, your bank account may be at an all time low.
But fear not: with a little ingenuity and dedication, you can earn more points on your credit cards without spending a single extra cent of your own money and treat yourself to a well-deserved reward. Here are some suggestions:
Pay For Friends and Family
Put your friends’ and family’s charges on your credit card and have them pay you back in cash. For example, next time you’re out at a restaurant or movie put the total on your card and collect cash from everyone else. Be creative. If you have a card like the Blue Cash Preferred from American Express that gives you 3% cash back on gas, then fill-up with a friend and have them reimburse you. The same goes for groceries and drug store purchases.
There are many items that people buy everyday – you just need to convince your pals to let you charge the cost and have them pay you back. Of course, this option only works if you can rely on your buddies to pay you in cash in a timely manner. You don’t want to amass credit card debt that you can’t pay off because that extra interest can quickly eat into the value of any rewards your points might get you.
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Blue Cash Preferred® Card from American Express
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$95 first year
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Blue Cash Preferred® Card from American Express |
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Shop Smartly
Before you make any purchase online directly from a retailer, check to see if you can shop the retailer via a credit card’s shopping portal. There are many credit card companies that offer cardholders discounts, bonus points and other incentives to shop at their own branded portals (like Chase Ultimate Rewards) or via an affiliated link.
Use Your Credit Card Instead of Your Debit Card
If you manage to pay your entire credit card balance each month then consider switching any recurring expenses you may have been paying via automatic bank payment to your credit card. This could include frequent items like cell phone bills, utilities, charitable donations and memberships. Be careful, however, to make sure that you will not be charged a fee as is sometimes the case with utilities, rent or tax payments. Take a look at how you are presently using your debit card and consider if you should be using your credit card instead.
A Word of Caution: There is also the option of adding an authorized user to your account to quickly and easily get extra points. Some credit cards even offer a bonus if you add users. This idea can backfire, however, if the person isn’t extremely responsible with their spending.
If you’re imaginative about how to use your credit card and have family and friends you can count on to pay you back for any spending, then the above suggestions can be cost-effective ways to pack-on the points.