Make Money with Credit Card

Making Money from use of Credit Card!

This may sound very farfetched to anybody but it is true, you can actually make money by utilizing the credit card properly.

First the Rules if you follow these rules then only you will be able to make the money.

·          Never Pay late,

·          Never Utilize the EMI options

·          Never Withdraw Cash through Credit Card

·          Never make a purchase because you have credit card.

Things you need to know.

Your billing Date: this is the date on which your billing stops for the month & new Billing cycle starts (mine is 23^rd of the month)

Your Credit period: This is the time difference between your billing date & your Due Date (Mine is 12^th of next to next month) so around 50 Days

So to put an Example, My Billing Cycle date is 23 March 2012 & My due date for this billing cycle is 10^th May 2012 this gives me 50 Days of Credit.

Now if you make a purchase through credit card on 25^th Of March 2012 for let us say Rs.15, 000/- then you have to pay this amount on 10^th May 2012 so you have 15,000 Rs. As free cash for 48 Days if you invest this amount in a decent Ultra Liquid Mutual Fund you will earn Rs.156/- on this amount without spending a single Paisa.

Though it is very difficult to time the purchase exactly as given above, in my experience you can time at an average of around 40 Days, below is the table which shows you the possible earnings through credit card for various scenarios, this can go up seriously if you do regular company travels etc from your credit card. 



Additionally you get points on these purchases which you can redeem for various items, though miniscule this is earnings without too much of an effort.

Table of Money Earned.

	Days
Amount	45	40	35	30	25	Points Earned
5,000	51	45	40	34	28	50
7,500	76	68	59	51	42	75
10,000	102	90	79	68	57	100
12,500	127	113	99	85	71	125
15,000	153	136	119	102	85	150
25,000	254	226	198	170	141	250