I get this one question all the time and I have decided to address it publicly. I actually use my credit cards to MAKE money. I know that many people say you should not use your credit cards…and I think if you have debt then you should not…but generally I believe that a credit card can be a great tool.

I use my credit cards to make myself money every month in the form of cash back or points that can be turned into cash. I have one credit card that gives 1 point per dollar for EVERY dollar spent.

If I buy gas I get cash back.

If I pay the cell phone bill I get cash back.

This is great because I can put EVERYTHING on my credit card from rent to electricity and get rewards points for every transaction. I then turn those points into cash when I have reached the desired redemption level and I then use that cash to either credit my account or get a deposit to my checking account.

The thing is that once I charge something to the credit card I have the payment ready to go. So I know the amount that my rent is going to be on a monthly basis and I have my ING account push the rent payment to the credit card instead of writing a check for the rent.

I treat my credit card like a debit card in that the money comes out of my checking account as soon as the item is charged. I follow my budget and charge what I know I can afford to pay and always make sure to have the card paid before the end of the month so that I do not carry a balance and end up having to pay fees.

Remember a credit card is just a tool and if used correctly it can make you money!!!