credit cards have benefits

Best way for passive income- Credit Cards

I’m here to show you that credit cards CAN be a great thing if used responsibly. They receive a bad reputation majority of the time because people don’t have the right knowledge on how they SHOULD be used. Most people have bills to pay which include and not limited to rent, utilities, groceries, and even some entertainment (like Hulu or Netflix).

Hear me out, why not use a credit card (which rewards you with making purchases) for things you are already buying?

The rewards vary between cash back options and rewards, so make sure to keep that in mind. This is where you can start to make some passive income with your financial recurring responsibilities, and over time the vocation you so desperately need will be available just for using some plastic.

Passive income is where you receive recurring payments of cash or reward flow with minimal or no effort, and this is how credit cards can do that for you.

Minimal Effort on your part

You most likely have an online option when it comes to paying your bills, which is an easy way to never fall short on the due date. The portal also allows automatic payments which ensures there is no discrepancies for bills being paid. You can use credit cards in these portals which will allow you to have automatic payments set up to a single card where you can simply pay there.

The Best way for passive income is credit cards, seriously. You will also notice that the card runs on a 30-day cycle which also allows more time to get the bills paid in full before the next month. Credit cards create more time to pay the bills, the ability to pay all in one place, and earn rewards while you simply just sign the card into the portal is an easy minimal way of gaining rewards.

Remember that it is best to use the card for things that are considered IMPORTANT, like the rent and utilities, and not a fancy dinner out just because. Credit cards can be an asset, but used irresponsibly can turn it into a liability.

Assess your budget

Creating a written out budget really helps you look at the bigger picture of your financial situation. You know your monthly to yearly expenses can really help make better decisions in the future and drive you to accomplish more within your lifetime.

If you are unsure where you want to start, I recommend that you look within you bank statement and take down some balance and checks. Looking at the flow of your money, you can then categorize the purchases which makes it easier to see the important ones and make some decisions on the “not so” important ones.

This is honestly how I started to create my budget. I was buying Starbucks every day and that’s all while my old laptop was acting funny, but I didn’t have money for a new one. I definitely had money but I wasn’t retaining it for the things that really mattered.

You can start with the following categories as a guide:

  • Rent/ Mortgage
  • Utilities
  • Car note
  • Insurances
  • Grocery
  • Internet
  • Gas
  • Entertainment
  • Savings
  • Splurge

You will get the idea of which categories work for you and be able to assess which expenses are essential and which ones can be tweaked. Budgets show you your financial health, really, it’s OK to look! Have fun with it!

Merging with benefits

The next step is to look at the categories that you have laid out for yourself and determine which type of cards benefits your current lifestyle the most. If you buy more groceries and utilities are pretty hefty (let’s really hope not because you can always negotiate prices) then you would want the card that would benefit you on those and not a travel card that rewards staying at hotels and airplane tickets.

You get me? Yeah, this is ONLY passive if you earn the rewards from the purchases you are already making.

Companies can be competitive, so don’t forget that they are fighting for your business.

Offers may include:

  • Travel Rewards (points no matter what the purchase and perfect to save towards a vocation)
  • Retail partnership rewards
  • Cash-back rewards
  • Balance transfer promotions
  • Extended 0% APR period
  • Sign Up bonuses
  • Referral programs

All of these will come into play when looking for a card that best fits your needs.

Cards I use personally

I have analyzed my budget and thought about my needs and these are the cards that fit perfectly in with my financial needs. I will also be explaining why I chose them and how I use the cash-back and rewards to my personal advantage.

Capital One Venture Card– Number one for me because I use for all my monthly personal expenses and the $500 sign up bonus. I get great rewards and all around offers more to the customers. The Highest rewards or cash-back for me so far.

Citi Credit Card– I use for business expenses where I get cash-back on my purchases.

BBVA Credit– Allows me control on choosing categories for the month to earn more rewards on.

Best Buy Credit– Allows me extended 0% interest payment plans.

These are the cards that I have personally used and absolutely love for the various rewards or perks they offer, so I encourage you to do your own research based on your budget. Again, remember the companies are competing for your business so play “hard ball” until you find the perfect fit.


You can make smart subtle changes like adding a credit card to the portals where you are paying bills anyways. The Best way for passive income is credit cards with benefits.

You ONLY want to use these on the purchases that you are already doing so that way you don’t turn the card into a liability. Passive income is where there is little to no effort on your part to receive extra cash flow or rewards for how you live currently.

Credit cards come with a great responsibility, so be sure to have a written budget to grasp the full picture, analyze your categorical needs, and do enough research to find the best deal a card can get you before signing up. Some criteria to check on is:

  • Rewarded Categories
  • Sign up bonus
  • 0% APR period
  • Travel rewards or Cash-back
  • The ratio of reward to dollars spent.

You keep these in mind to make sure you are getting the best deal for yourself and your financial situation.

I really hope that you found this article super helpful and summarizing the way you can make a credit card passive income.

Best Regards,


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