How to get free stuff by using your credit cards

Yes, I know your credit card shame

There's no doubt that in today's highly credit conscious society, you've heard the tales of woe and evil caused by the almighty credit card.  Yes, it's true, the evil geniuses in corporate banking have thought of every possible way to ensnare us by offering the siren song of unlimited buying potential and 5% cash back on our purchases.

While there is a danger in using credit cards, both for personal debt reasons and general credit score health, you can successfully get a ton of free stuff if you use them strategically.  Large credit card companies have always offered a slew of services to get consumers to use their products over competitors.  I would only really try this after you fix your financial situation and your credit score is in good shape.  For tips on that, see my earlier blog here.  I do NOT advocate putting yourself in debt to get free things from the credit card companies.  It's a ridiculous idea and you're smarter than that, so don't do it.

What I do advocate is looking into credit cards that might benefit you if you were to use them instead of a checking account to pay your monthly bills.  If you do this, use the money you would have originally used to pay the bill to pay off the credit card charge.   Not only will you be generating points towards something you want, but you'll be building up your credit history and score by being a responsible consumer.

Image via Capitalone.com

You can tailor what kind of credit card you get to your lifestyle - if you travel a lot, getting a rewards card for an airline or hotel chain where you frequently stay is a great way to earn double points and get free trips and hotel nights.  Overall, the Capital One Venture card is a top pick among those in the know.  If you have a rewards number or frequent flyer number for a specific airline or hotel, check out their website.  They will usually have special offers offering a huge number of points if you spend a certain amount in a specific time period.  Don't go out and buy things you don't need, but find creative ways to pay your bills using your card to get the points.  If you live in an apartment complex,
a lot of them take credit card payments now, so that will contribute a large chunk towards your qualifying purchases.  Again, make sure you don't think of that as free money - pay off the balance with the money you would have used toward your rent (or other bill that you're paying).

While the rewards for these cards are awesome, the interest rates tend to be higher, so avoid carrying a balance.  I learned that the hard way when I kept getting hit with $65 monthly interest charges on an old card I used to have.  Learn from my stupid-ass mistakes.

For rewards besides travel, I dig the Chase Amazon credit card.  It doesn't offer a lump sum of points like some of the fancy travel cards, but it does give you points based on your purchases that you can used directly on Amazon.com like cash.  This is great if you have a serious Amazon.com addiction, like me.  Another card that gets excellent press for being a great every day rewards card is the Chase Freedom card.  It offers a $100 bonus on your first $500 in purchases (within 3 months) and 5% cash back on up to $1500 of purchases.

Check out thesimpledollar.com and nerdwallet.com for more reviews on the best rewards cards for 2015 and choose the one that fits your lifestyle.

Don't take credit handouts from everyone,
 you don't know where they've been 

As with any credit card, make sure you read the fine print before you sign up.  Some cards can come with a high interest rate or an automatically billed annual fee.  Sometimes the annual fee is worth the benefit of the card, sometimes it's not.  Just make sure you know what you're getting into before you sign up.  Make sure you shop around during the year for better interest rates and rewards.  A credit card doesn't need to be like a bad marriage that you're stuck in forever, so go out there and find one that's better suited for you.  Just make sure you use it responsibly.

XOXO, Katz

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