I am pleased to say that I am a credit card deadbeat! In fact, some of you may already be with credit card deadbeats, if so, I would like to 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 might want to keep reading!
When I say that I am a credit card deadbeat, I do not mean to avoid my credit card bills. On the contrary, a credit card deadbeat is the insider term used by credit card company executives and refers to all credit card users who pay their bill every month; that way, such customers pay no interest and prevent the creditor from making a profit! It is 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 who constantly carries a balance and is charged regular, monthly interest on their fees. Credit card companies love revolvers because they basically increase the bottom line of the credit card company and make them a nice profit. 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 a while now, but last year I went even further to improve my deadbeat ways. Not only did I hang on to my hard-earned cash by refusing to line the wallets with the credit card companies, but I fortunately lined my own wallet with their money for $ 1,402. Yes, that’s right, they paid me $ 1,402 to use their card; keep reading to find out how!
Cash Back Credit Cards
First, I applied for a cash back credit card online and I was immediately approved. My new cash back credit card arrived at my house the following week ready for use. This card offered me 0% APR for 12 months and had no annual fee; With that, I did all my gas purchases as well as grocery and pharmacy purchases and earned 5% cash back on gas purchases and 1% back on all other purchases. I have a family of four and gas purchases also included gas for my spouse’s car. My average monthly purchases and cash back earnings were as follows:
Monthly gas purchases $ 325 x 0.05 = $ 16.25
Monthly grocery bill 1,200 x x 0.01 = $ 12.00
Monthly pharmacy purchases $ 160 x 0.01 = 1.60
Total Cash Earnings from Credit Cards $ 29.85 x 12 = $ 358.20
Airline rewards credit card
I also applied for a credit card with a rewards card and again was instantly approved online. Like the cash back credit card, my new credit card company rewards credit card arrived the following week, came up with a 0% initial April for 12 months and had no annual fee. This credit card earns 1 frequent flight miles for every $ 1 charged.
I charged many of my miscellaneous expenses, including major purchases and business expenses, on my new credit card credit card. As a result, qualifying expenses averaged $ 2,250 each month, or $ 27,000 for the year, earning 27,000 frequent air miles, more than enough for a plane ticket to Hawaii: worth $ 500!
0% initial April for 12 months
Now the kicker. Since both credit cards came with an initial April of 0% for 12 months, I only paid the minimum payments on each card and placed the money for my purchases in a savings account that earned 2.5% (rates have increased since). Using average for simplicity, I made 12 monthly deposits of $ 3,935 into a savings account that earned 2.5% interest compounded monthly. By the end of the year, I earned $ 544 in interest!
My total credit card revenue for the year
So here is my total earnings from cash back credit cards, airline rewards cards and accrued interest.
Cashback 12 x 29.85 = $ 358
Free airfare $ 500
Savings account interest $ 544
A total of $ 1,402 earned
Just to make sure I maintain my stalemate ways, now that the 0% introductory rate has expired, I have paid my balance from the money I deposited into my savings account during the year. To be a groundbreaking credit card you need perseverance, determination and discipline. I did, and so can you!