How I use my Credit Card and make money….

In our society there is a myth that credit card makes us to spend beyond our means and lead you to a debt trap. But one thing I like to say here that it is not a credit card's issue it is your temptation which lead you in debt trap if we go beyond your limit to test card limit. Card company or bank never say that go and spend which you can’t pay.

Now let me explain how I use my credit card. I have a credit card with money back feature having billing date 4^th of each month having due date 30^th of the month. I try to use my credit card as much as possible though out the month for all my purchase and utility bills. I never spend without having plan for bill payment in place.

I have register auto pay for bill payment with my bank account to minimize the risk to non payment of credit card bill . Now suppose I have a bill of 20000rs for a month. So I can earn 25 days interest on my bill amount with ROI 4% as per my saving bank account. And the money back point are the bonus. I used to park my bill amount in some liquid fund which result more risk free return. 

I like to just mention that day before yesterday I have redeemed my cash back point which bring my credit card bill for this month to ZERO.

Be a controlled and informed user of credit card.

The advantages and disadvantages of credit cards

Advantages

• Convenience--Credit cards save our time to search for an ATM and trouble to keep cash on-hand.
• Free Record keeping--Statements can help to track our expenses and cut down unnecessary one.
• Free loans—Mist of the card comes with 45-50 days interest free credit period.
• Rewards and Perks-- Most of credit cards come with discounts, deals, and offers on shopping, entertainment, travel, and fuel. Some of them also enjoy cash back and earn reward points.
• Build positive credit--Controlled use of a credit card can help you establish credit for the first time or rebuild credit.
• Balance Transfer--Many credit card companies offer us to move balances to lower-rate cards.
• Revolving credit - If you cannot pay your bill in full, you can carry over the balance after paying the minimum amount due. The balance will be charged interest, but you will be able to postpone the payment

Disadvantages

• Temptation --Credit card makes us to spend beyond our means. This will only lead you to a debt trap
• High-cost fees-- If you carry a balance or miss a payment then you will end up with paying high interest rates. Most of the card have annual fees associated with first year free. Even we have to pay 2 and 4 percent just to get the cash advance with high ROI. This means there is No free lunch