Credit card reward programs are becoming more and more popular among credit card holders.
Users believe that if they use the card they may as well get something back as well.
Reward program members gain points by making purchases.
Depending on the program, you may earn double or triple points by shopping at certain stores or for certain items.
Credit for a Car? Some people are getting very creative with their credit card reward programs and using them to make very large purchases to earn a huge number of reward points.
Recently a friend of mine was shopping for a "new" used card.
He was looking to spend around $10,000 on this vehicle, he also happened to be a member of a popular credit rewards program.
My friend shopped around and found a loan, he was financing 100% of the $10,000.
When it came time to make the purchase, my friend paid for the car with his credit card and earned over 20,000 reward points in the process.
Then he simple used the proceeds from his loan to pay off the credit bill.
He's currently making payments on the loan now just as he would have paid the loan directly to the dealer.
Tuition on a Credit Card? A colleague of mine is using another method to earn massive amounts of reward points.
He currently has two daughters that he is putting through college.
When the tuition bills come, he swipes his card.
With tuition averaging over $10,000 per year you can see how he is earning a substantial amount of the points.
Again when the credit bill comes, he is simply paying the bill from money he has set aside for his daughter's education.
Thanks to the 25 day grace period that most cards have, this is not costing him one cent more than it would to pay by check.