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Most people will associate credit cards with spending, interest rates, and credit scores. While all of this is true, many people do not realize that credit cards can actually be used as an instrument to put more money in your wallet.

While it may not pay you as a normal job, there are opportunities present out there for you to make money using one of your plastic credit cards. There are a number of ways for you to turn the tables and start making your credit card work for you. Follow these tips to get yourself started.

Cash-Back Credit Cards

One of the first ways that you can make money from a credit card is to get a credit card that pays you to shop. This is called a cash-back credit card. Depending on what card you receive, you can get up to 1 to 5 percent cash-back rewards for purchases.

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One such card that does this very well is Discover. You can earn 5 percent cashback when you spend in certain categories such as restaurants, gas and more. You could actually end up earning up to $1,500 per quarter if you spend your money on purchases that qualify. Add in the rare perk of them matching you dollar-for-dollar on all of the cash that you earn back in your first year, the money you receive can add up quickly.

You should be advised to not get into bad credit card habits. You still have to pay off your balance in full each month to avoid paying high-interest rates. Falling into debt will eliminate the benefits that you can receive from this kind of credit card.

Bonus Reward Points

One of the best ways to leverage credit cards for money in your pocket is to open new credit cards with points that can be used towards heavily discounted flights. You can have your pick of credit cards that offer points just for signing up. Certain cards, such as the Chase Sapphire Preferred credit card, can let you earn up to 50,000 points after spending $4,000 in the first three months of opening an account. If you add that up, that amounts to just over $600 that you can use towards travel.

The point of these kinds of cards is to get value from spending money on your credit card. Take advantage of some of the opportunities to earn rewards for spending, and in the end, you will have discounts that you may not have had before.

Re-Invest Your Cash

Another alternative on the table for you to earn even more money with cash-back rewards cards is to re-invest the money, no matter how insignificant the amount may seem. With compounding interest, cash-back rewards will grow considerably over time.

For example, you may earn about $300 in cashback every year. If you invest that money into an account that will earn about 7 percent interest per year, your balance will grow to more than $4,000 in a 10-year span.

This isn’t even money that you yourself are investing in. This is money that credit card companies are giving you for using their card. It’s not “free money” since you do have to spend money on the card to get the points, to begin with. But if you want a simple way to build some form of residual income, investing the money that you earn on cash-back rewards can be a great move for you.

Certain rewards credit cards will also allow owners to link their cards to eligible investment accounts, such as retirement accounts, brokerage accounts or a 529 college savings plan.

Credit cards can be a hassle to deal with sometimes, especially with high-interest rates. That is why you may want to consider Alamo Associates, who offer very low-interest rates and single monthly payments.

Shop Online

Certain credit cards will allow you the opportunity to earn cash by shopping online. This means that you may have to be logged into your credit card account to access the savings.

Credit cards will offer different perks, which can include gift cards or savings off your next purchase. Whatever route you decide to go, just ensure that you read the terms and conditions so that you fully understand what you are getting into.

Link Credit Cards With External Services

You may be a novice at investing, but there are easy starting points that novices can pick up quickly. One such popular service that many people like to link their credit card too is Acorns.

The process is very easy, and all you need to do is make an account and link your credit card. For every purchase that you make on the card, Acorns will round up each purchase to the nearest dollar and will automatically invest the difference. Essentially, what Acorns is doing is turning your loose change into an extra stream of income.

These funds will be automatically invested into a diversified portfolio, and as many credit cards as you like will be linked. The amount you earn is directly related to how often you use the linked credit card.

This service costs a mere dollar a month for using the service. If you are a college student with a valid school address, you will be able to use Acorns free of charge for four years.

Credit cards can be used as an extra stream of income for you, but if you are not careful with how you use the card, it can land you in a lot of debt. Consult Alamo Associates if you want access to affordable interest rates and monthly fees.

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