Kate

People have a tendency to focus on the high interest charges that are incurred by credit card debt, and often forget that for those cardholders who only spend what they can afford to repay each month, having a credit card is quite profitable. Here are three ways that credit cards can make your money.

Saving on Bank Fees

Most of us complain about the fees that the banks charge us for using our accounts. However, using a credit card does not incur these fees, and over a whole year it would not be unusual for the saving in transaction fees to exceed the annual fees on the card. You do have to be wary as on the rare occasion you might be charged some other type of fee for using a credit card, but for the most part organizations that accept credit cards are not going to charge you more for using them.

Interest-free Days

When you use cash to pay for something, from that moment on you do not have the use of the money. However, if you use a credit card, you still have the money until you have to pay the bill. If you keep the money in an interest-earning account, you can make money by keeping the money you have put on your credit card in this account until