How I Earn More on My Credit Card Than I can From a CD

(Note: None of the companies, credit cards, or investment strategies mentioned below constitutes an endorsement.)

                If you pay off your credit card balance each month, this article is for you. Otherwise, it’s best you move along to another article. I just heard a radio commercial for a bank that pays a “generous” return of 0.7 percent on its certificates of deposit (CDs). Say what?                 For years I used a Capital One Venture® Visa card as my primary charge card. And I charged all purchases greater than five dollars on it. Why? Capital One pays me 2 percent back on all my purchases. Get it? I was making three times as much on my credit card as a I could get from my bank (actually, my credit union). That money is usable for travel expenses, which means the cost of travel, like airfares, hotels, and meals. But I can also use it to payCredit Card - Captial One Venture for any expenses while traveling.                

You can search for other cards that match that deal. I have one that beats it and I’ll get to that in a moment.                

The catch? Capital One charges a $59 annual fee. So, do the math. If not, Capital One also offers a Quicksilver® Rewards card that pays 1.5% with no annual fee for those with excellent credit. If you charge enough to make the rebate exceed the annual fee, you’re in like Flynn with the Venture Card. Otherwise, you can go with Quicksilver, which has no fee.                

I invest with Fidelity Investments. It now has programs that beat even Capital One’s. Fidelity offers an AmerFideltiy American Express cardican Express card that pays 2 percent and a Visa card that rebates 1.5 percent. Neither levies an annual fee.                

My point? If you have a good credit rating and you pay your credit card bills in full each month, find yourself a suitable rebate card and charge away for on the purchases you would be making anyway. You’ll make a lot more with it than “investing” in CDs.

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