How I Actually Make Money Off Of My Credit Card

I have wanted to do a post about my credit card rewards for some time now. I want to start by saying that American Express has not paid me to say any of this. I just really like their product and have been very impressed with the way I have been treated over the years. I guess I just wanted to sing their praises a little bit.

I have had the Blue Cash Preferred Card by American Express. I can describe this card in only one word: awesome. It really is. The card basically gives me 6% on groceries, 3% on gas, and 1% on everything else. There is no maximums and the only drawback is that there is a $75 fee per year but the card has basically paid for itself in the first month. In addition, I received the card during a promotional period where they offered $100 in credit after being approved. We typically try to put everything on credit that we can and put payments on the card as the month goes on. We spend usually about $2,000 in monthtly expenses on the credit card every month with the majority our spending going to grocery store expenses since we try to eat in as much as possible. At the end of the month, we usually make almost $90 a month or so into cash back credit.

I consider this as a form of passive income as I really don’t have to do anything to get it but pay my bill every month and the money would be spent anyway. I have had cash back credit cards before but this card is by far the best I have had. I used to have the Amex Blue Cash Card that did not charge an annual fee but the reward rate was much lower. It just makes more sense to get the Preferred cash card for us as we would make more money off the rewards than what we would spend on the annual rate. I have also gotten some other cool perks off the card such as an additional credit on Small Business Saturdays where Amex gives a cash credit for card members if you spend at least $25 in a small business. This also, of course, helps small businesses stay in business while keeping card members happy.

Now after saying all this, credit cards need to be used with the utmost responsibility. If you cannot pay them them, then please do NOT get them. It will only cause more problems then it will solve. I know first hand what it feels like to be in credit card debt and have lived to be able to pay them off. Now that I have no credit card debt, I can actually use credit cards to my benefit. I believe you can use credit cards to your advantage if you use them wisely. I also believe in treating your customers well if you want to run a good business and I believe Amex does this.

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