Turn Your Credit to Cash!

Do you use credit cards? If not, why not? If so, do you know how to turn your credit card charges to cash?

I am a big believer in using credit cards instead of debit cards if you pay them off each month. If you cannot pay them off each month, stick to debit cards so you don’t dig yourself into a hole, especially as interest rates are climbing !

However, if you use credit cards and pay them off each month, there are so many advantages including those I covered in a previous post about safety, privacy, and clarity/peace of mind. If someone hacks your credit card, the most annoying thing you will have to do is wait for a replacement card. If your debit card is hacked, your bank account can literally be drained of hundreds or thousands of dollars, and depending upon your bank, you may have to wait weeks for the funds to be returned.

So how do you turn your credit to cash? Here are three things you can do.

1. Know How to Play the Game

Now more than ever, having good credit can save you money and actually put cash back into your pocket. The Federal Reserve just raised interest rates another 75 basis points (¾%) which is the fourth rate hike in the past five months (and the largest rate hike in nearly three decades!).

This article covers the five things that will be more expensive including credit cards. If you carry a balance on your credit card, you may see an immediate increase in the amount of interest you are charged each month. This becomes a vicious cycle and can keep you in perpetual debt.

In my previous post, “The Credit Game: Are You Playing It or is It Playing You?” I demystify how your credit score is calculated in five factors, the most important being your payment history and the total amount you owe as a percentage of your total credit limit. If you follow these five rules, your score will soar. I’ve seen this work many times, and it doesn’t take that long! Excellent credit gives you excellent options. That’s when you can truly convert your credit to cash.

2. Convert Your Spending Into Cash

One advantage of having excellent or even good credit is being able to choose from a wide variety of cards that offer cash back and/or rewards and perks based upon your current spending habits. Take a look at what you are already spending and make sure you have the right card to get you the most bang for your buck. Later in this post I’ll share some resources for how to do just that.

Here’s a real life example: I have a client that previously paid everything with a debit card. I analyzed the spending (online ads, travel, online services) and determined that for 2021, using a combination of a Chase Ink Business Preferred Card and an American Express Business Platinum Card would have resulted in over $9,500 cash back in addition to earning bonus points that could have been redeemed for free travel, premium airport lounge access, goods, services, and more. This is on top of the added protection that comes with the cards such as rental car insurance, trip cancellation insurance, and, or course, the privacy, security and peace of mind/clarity that I mentioned earlier.

Even if you don’t spend nearly that amount (I don’t!), be sure to research and activate the rewards your card offers. For my American Express Business card, I scroll through the “Offers” section at the bottom of the app each month and add offers that apply to things I purchase or plan to purchase (most have an expiration date so do this regularly!). Just this month I activated six offers which resulted in a savings of $295! And last month my sister and I stayed in a 5-star hotel in downtown Chicago for no charge compliments of my AMEX points. I’ve found that when I “work” the offers, travel savings, and perks to the max, the cards pay for themselves many times over. Like I always say - don’t leave money on the table!

3. Choose the Best Card For Your Needs

Not all cards are created equal. It is like buying a car - choose one that you can afford and that fits your lifestyle. You may have one card that is good for cash back (we see you Citi Costco!), have a different card for travel rewards, or maybe you are in a temporary cash crunch and need to pay off a high interest card while you are waiting for your funds. In that case, you may want to apply for a card that has a special “introductory offer” such as zero-percent interest for a limited time when transferring a balance from another card. It really does depend on what YOU need. Taking a little time to play this  game will not only save you money but can be fun!

I’ve listed a few links below where you can start your research. NOTE: you do NOT have to sign up for these services just to research your options. If you do decide to apply for a card via the links below, they may receive affiliate commissions so do your due diligence before you apply (hello Google!). I am not an affiliate of any of these sites - just passing on the info.  You may also want to call the credit card companies directly to make sure you get the best card for your spending habits. For example, American Express has so many cards you may not even know about because they are not widely advertised. Recently, a client called AMEX before actually applying and the customer service rep was very helpful in directing him to a card that worked best for his lifestyle.


Hope this helps you turn your credit to cash! If you need to do a deeper dive into how credit works, including how to improve yours, check out my course, THE CREDIT GAME: 3 Course Bundle - WIN the Personal and Business Credit Game!

Here’s to you crushing the game !

Martha TheusBusiness Skills