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How’s it going everybody this is beat the bush today i’m gonna talk about three levels of making money from credit cards you see long before i got 26 credit cards i thought the way to make money from credit cards is to purchase things and then get your cash back and occasionally you can get some signup bonuses so after doing all this turning i realized there’s
Different tiers at which you can make money from credit cards the lowest being cashback percentage it goes from like 1% to 5% or even 10% and then it’s signup bonuses and then after that is actually referral bonuses let me first talk about cashback bonuses for anyone that’s sort of in a know you can basically get 2% back on everything that you buy now you just
Need to qualify for one of these cards one of them being the city double cashback card now on some credit cards you get something a little bit better like to discover it or the chase freedom you can get 5% on rotating categories but these are a little bit annoying but you’ll soon see that 5% pales in comparison to sign up bonuses and what comes afterwards which is
Referral bonuses now on a really good day you might be able to get a credit card such as a sears mastercard which gets you about 10 percent cashback on some special promotions it’s not always guaranteed but you might be able to get this 10% sometimes now let’s step back a bit and just sort of think of this and a macro scale how much do you actually spend every
Single year let’s say it’s about $10,000 that you can funnel through credit cards listen you take all your bills and stuff everything you push it through credit cards and let’s say you’re able to somehow juggle your credit cards around and get 5% on every single category that you can imagine 5% on $10,000 is $500 which is something that i’ve been getting for you
Know the last 10 years i’ve been consistently getting you know i think about 200 to 500 dollars in cash back bonuses just from usage of all my cards i go okay this category is good i get five 5% on this current quarter so you know i do all this mental calculation i write this little cheat sheet and i make sure i maximize it i get on average you know roughly 5% on
Every single thing that i buy this is pretty good when you get $500 every single year for just spending what you normal would spend now the next year of earning is when you sign up for credit card bonuses you’ll soon realize that once you do this signing up for one single credit card it’s gonna net you about $500 worth of value so doing just one credit card it’s
Going to get you enough value of using cashback bonuses on all the other credit cards so just doing this you’re gonna be like oh my gosh i only need to do one credit card and essentially it replaces all those other cashback bonuses all those 2% 5% things so it sort of pales in comparison by a lot so you can just go well you know why don’t i just you know sign up
For one credit card take the $500 and i don’t have to deal with all this 5% maybe you don’t have to deal with it as exclusively so then you just go okay forget about all that i’m not gonna do all this mental juggling and just you know just use a citi double cash back card and just get 2% on everything okay then you can sort of you know relax a bit and not need to
Keep on updating this cheat sheet that i personally have done before now in order to tap into the design of bonuses you actually need a pretty good credit in order to sign up for a credit card that allows for signup bonuses not all credit cards give you signup bonuses and if you want to do more than one in my case i did about 10 you need extraordinary credit like
More than 800 fico points now as i have said before if you want to do many many credit cards then you might need to employ some service like plastic where you can pay your bills pay your mortgage or something so you can satisfy these minimum spend requirements in order to get the sign-up bonus now you can no longer use this plastic thing on mortgages using a visa
Or american express card now mastercard and discover still work so it makes things a little bit more difficult to do so you can only sign up for signup bonuses for master cards and discover cards but it’s still possible to do a few now if you don’t want to do this plastic service thing you can indeed still sign up for a credit card and just go okay i’m going to
Really spend everything that i have everything that you normally would spend through that credit card so you might find yourself you know going to all these bills and then go okay let me change the charging credit card and that takes a lot of work of course but if you do all that and just funnel everything your car insurance your trash bill just basically everything
Through one single credit card you might be able to satisfy one brand new credit card maybe i don’t know two three months or so you can do one brand new credit card without even using this plastic service now let’s think about the value here five hundred dollars or so for cash back bonuses that’s on the order of two to five percent but when you do sign up bonuses
If you’re able to do one single card that’s five hundred dollars already if you’re able to do ten cards which is something i did then you can get a value of close to five thousand dollars so this is one order of magnitude better than your cash back bonuses and to me it’s roughly about the same amount of work as doing five thousand dollars in signup bonuses versus
Five hundred dollars in cash back bonuses the last and most profitable level is referral bonuses this is where if you have your credit card and sometimes they give you mailings and go okay refer friends or something then if someone signed up you can get like $50.00 to $100.00 i’ve seen so in this sense you never actually have to try to funnel all your spending
Through a credit card and just get a measly 5% you don’t have to try to use the plastic service to try to turn a credit card at all no money actually flows around at all so therefore you can refer as many people as you want now from what i seem that chase freedom card does solicit people just anybody that uses their card to try to have them refer their friends
And every single time you refer someone you actually get $100 worth of points in your account now referral bonuses is gonna work best for people that has a lot of facebook friends maybe like thousands of them and if you have a media outlets such as a youtube channel or a website you can refer someone and when they click through your link and sign up to a credit
Card and get approved and everything then you’re gonna get a kickback of you know something around 50 to 100 dollars it’s important to note that if you do not have a relationship set up with for example chase or discover or something like that or any of the credit card companies that they usually limit your benefit to about $500 so if you refer like five friends
On chase freedom then that’s the most that you’ll get if you refer ten you’ll still get the amount of referring five so they put a cap on that i think because you do not have an established relationship with them they just kind of want you to refer to the people that you know and if you happen to refer to more than well they don’t pay you for that so if somehow
You are a big enough media person maybe you have a really big website i think slick deals does this as well because if you go on their website you can see that every two lines or something they always refer you to use like chase freedom unlimited or you know one of the sapphire cards so if you have a relationship set up with one of the credit card referrals then
I believe this is unlimited i personally don’t have something like this but i’m pretty sure this is what happens why do i say this referral bonus is the best way better than percentage cashback way better than signup bonuses because you’re not limited by the number of cars that you can turn which is basically limited by my personal credit score here in a referral
Bonus you’re limited by how many people can click on your link and actually sign up which is basically limited by how much reach you have how much media presence you have so if you have a really large website if you have a really large blog really large youtube channel then many many people will sign up for even if just one person clicks on this link out of 1,000
Or even 10,000 people this represents a huge referral fee so out of all these methods i hope you see that each one is limited by something and each one has a requirement for example the first one cashback well anyone can do that the second level you need a really high credit score the third one you need some sort of media presence which is really not easy to get i
Hope this gives you a little perspective on which level you’re operating at especially when you start doing credit card signup bonuses you’re gonna start looking at the cashback level like is very little basically once you’re able to do credit card referral bonuses which for myself i have not been able to do because i’m not signed up with a me credit card company
Just yet you’ll likely find that even signup bonuses might be a little bit too difficult too much work to do because you cannot repeat this on a continuous basis i you enjoyed this video don’t forget to give me a like over here comment down below let me know if you sort of abandoned cash back or sort of looked at it a little bit less after you tried out a lot
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Transcribed from video
3 Levels of Making Money from Credit Cards By BeatTheBush
