How to use your credit card to your advantage
💡 Quick Tip
Transform your credit card from a potential danger to an excellent profit tool. Discover how to use it to generate rewards, improve your credit history, and finance yourself for free for 30 days without paying interest.
The plastic money myth
There is a popular belief that credit cards are inherently bad. The problem lies in user behavior. Banks make money on those who defer payments, but you can be a "total customer" who never pays fees.
Rule 1: Zero interest financing
The magic of a credit card is spending the bank's money for a month at no cost. The golden rule is to set your card to pay in full at the end of the month. The applied interest is 0%.
Rule 2: Take advantage of the billing cycle
Know your card's cutoff dates. If the cycle closes on the 20th and charges on the 1st, a purchase on the 21st won't be charged until the 1st of two months later. You get over 40 days of free financing.
Rule 3: Insurance and rewards
Paying for travel with credit often gives free cancellation insurance. Look for cashback cards or flight points. You earn money for purchases you were going to make anyway.
📊 Practical Example
Practical example with real numbers
You have fixed monthly supermarket and gas expenses of €600.
- With a debit card: You pay immediately. Your account drops €600, getting nothing back.
- With a credit card (Full Payment + 1% Cashback): Your checking account keeps those €600 for 30 days in a savings account yielding 2.5%. At the end of the month, you pay exactly €600 (€0 interest). Plus, the bank refunds 1% of your purchases.
At the end of the year, just by switching the plastic, you get €72 free in cashback while maintaining liquidity.
