Everyone knows credit cards. Those wonderful, magical plastic cards that let you buy what you want right away and pay for it later (mostly in installments!). But what a lot of us tend to forget is that the credit cards that masquerade as a shopper’s best friend can totally shape-shift into the perpetrators of big financial trouble if you’re not a disciplined spender.

If you can control the urge to impulse buy anything and everything that crosses your path, you can actually make money from having a credit card and not land yourself in an ocean of debt.

Two types of credit cards can help you make money and those are rewards cards and cash back cards. And what are those exactly?

Rewards Credit Cards
As the name says, you get rewarded for using your credit card. The rewards are in form of points which you earn for each dollar you spend. So the more you spend, the more rewards you get. Kind of like gambling but without the risk of losing all your winnings and the self-loathing that definitely comes after that. Most Rewards Credit Cards usually let you earn 1 point per dollar you spend. The points you earn can be redeemed for gift cards or used to make a purchase where applicable. On this basis of 1 point per dollar spent, the redemption value of your points is equivalent to $0.01 which means if you want a $100 gift card, you’ll have to redeem 10,000 points. That means you’ll have to do a whole lot of spending to earn those kind of points.

Cash Back Credit Cards
With a Cash Back Credit Card, you earn cash for each dollar you spend. The typical cash back rate is 1% of the amount you spend, although some cards offer higher cash back amounts. Your cash back can be redeemed for statement credits or a check. This kind of credit card has the advantage that you earn cash instead of points which have more limitations. Usually there’ll be different cash back percentages depending on where you use your credit card; from grocery stores, to gas stations and anywhere else.

You can choose whatever type of credit card suits you and your needs. The best way is to research as many as you can and choose the one that offers the most rewards or the highest cash back. The type of card you choose will also be influenced by what you want to achieve. For example, if you want to travel for free, a rewards credit card is the best option; and if you just want to get some extra cash, the obvious choice is Cash Back Credit Cards.

Who Is It For?
Since this side hustle doesn’t really need you to work, it’s perfectly easy to incorporate into your life, so whatever your schedule or main hustle, you can give this one a go. As with all credit cards, you must be at least 18 years of age to apply for a Rewards Credit Card and a majority of the credit cards will require you to be a citizen of the country from where your bank operates, and have a steady source of income.

Who Is It Not For?
Your credit score will be one of the determining factors for whether your application will be approved or not. That being said, if you have a bad credit score you’re not likely to be successful in your pursuit of earning credit card rewards as a side hustle. The exact credit score you need to get a Rewards Credit Card will depend on the card you’re applying for, but generally the higher your credit score, the better your chances.

How It Works?
There are lots of Rewards Credit Cards you can apply for. Some are even offered by local retailers offering you the chance to use your rewards on more purchases in their stores. Rewards Credit Cards are all affiliated with financial institutions such as MasterCard, American Express and many more. These institutions will have different requirements for applications but the most common ones are a good credit score and an age requirement of 18 years or over.

Once you submit your application, which includes your personal, contact, and financial information, your identity is verified, along with your finances. If everything is in order, your application will be approved and you’ll receive your card. The rewards vary according to the type of card you get so when you choose, choose carefully. If you can handle it, you can get more than one rewards credit card and make the most of it but beware, that’s a slippery slope that can lead you to a ton of debt. When you have your card, all you need to do is start spending to get rewards.

The more you spend, the more rewards you get. Sometimes you’ll find special, limited-time rewards programs where you can earn double the points so you should always stay on the lookout for those.

What We Like?
You literally don’t have to work. AT ALL. You control the rewards you earn by deciding how much you want to spend.
For some Rewards Credit Cards, your rewards points won’t have an expiry date so you can let them accumulate and spend them whenever you want. You can choose the type of Rewards Credit Card you want based on what you want to get like free trips or discounted clothes, shoes etc.

What We Don’t Like?
With credit cards, there’s always the danger of spending more than you can afford and that’s no exception with Rewards Credit Cards. If your Rewards Credit Card has fees and other interest charges, it can cost you a lot to pay off that credit and in the end the rewards won’t be worth it. You might ruin your credit score if you misuse your Rewards Credit Card.

How Much Can You Make
Your earning potential with using Rewards Credit Cards as a side hustle will vary according to the type of credit card you use, how much you spend, and the rewards terms of the credit card. Make sure you read through the terms carefully before you apply for any Rewards Credit Card so you won’t get any nasty surprises down the road.

Conclusion:
While this is an unorthodox side hustle, some have managed to make the most out of it and earn awesome rewards and even money. As long as you can master self control when it comes to spending, you should do fine. Your rewards are just an application away, so check out some of the rewards credit cards you can try out in the links provided and apply.

Pros:
•You get rewarded for everyday purchases, whether it’s basic necessities or something to spoil yourself.
•Credit cards allow you to make payments faster and more conveniently, even while you’re paying online.
•Safer than using cash.
•You can pay off your credit in installments and in the meantime enjoy earning rewards.

Cons:
•Spending a lot might mean more rewards, but it can also reduce your future income as you’ll have to use that money to pay off your credit.
•If you don’t use your rewards credit card responsibly, your credit score may take a hit which means you may not be approved for credit cards down the line.