I'm A Credit Card Deadbeat: You Can Be One
Too!
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 don
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 don t mean that I avoid 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! That 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, that 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 spouse
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 here 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, I 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 ® 2005 Stephanie Andrews
Author-Bio: Stephanie Andrews is a contributing
editor for http://www.credit-card-surplus.com
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