Back in the day, living below the poverty level, my big idea for making money was recycling. I used to pick up aluminum cans and bottles and recycle them to make some cash since no one would hire me at the time. Getting smarter, I upgraded to stalking sporting events and quickly picking up plastic bottles in the middle of the night and raking in $25 per night in less than 2 hours ($12.50 an hour tax free, take that 99%!). I was apparently in full retard mode, but at least you knew I was willing to leave my ego at the door to find a way to make some money. Funny enough, methodically knowing how to recycle plastic bottles turned into… Methodically recycling plastic credit cards. (side note when I hear models and bottles I have flash backs to carrying garbage bags full of crystal geyser).
Beginner: Don’t make the same mistakes that I made. Instead of immediately signing up for airline miles you want to begin with a solid credit history. Open up a bank account that offers a cash back rewards credit card with NO FEES attached. The caps are necessary. You want to have a small savings balance to ensure no fees are charged then open up your very first credit card. You will never close this account. Most people have no idea how the credit system works so the basic idea is that the first card you open should never be closed to ensure you have a long credit history. Don’t make the mistake of having a fee based card as the one line of credit you cannot cancel.
Intermediate: Now that you’ve established a solid credit history and are living below your means, you can play the recycling game. Again do not reach for those airline miles just yet unless you’re seeing offers that exceed or meet the 40K airline mile marker. If you’re still hurting for cash (below $5-10K in the bank), it is better to cycle 1-2 cash credit cards that yield $200+ for a sign up. This means in two simple credit card applications you’ve got $400… that is 8% of the way to your safety cash goal already.
Begin shutting down cards at the 1 year mark and now wait 6 months before applying for the bigger credit card deals. Remember never shut down that first card you opened that is your credit history card.
Advanced: Now we’re making real strides to making you rich. Advanced level is similar to raiding Madison Square Garden if they held a beer can drinking festival unattended. Here you’re searching for mega deals. You should have a few years of solid credit history under your belt, you can even test your score before you apply. Now you go for the kill.
Apply to major rewards cards (40-100K+ mile cards, Hotel cards, major cash back cards). These cards carry large fees, so you will need to place a calendar reminder into your phone or computer to cancel them before the 1 year annual free membership expires.
Hacking: Ideally you wont have to do this, but another good trick is to keep your original credit card limit low. What you do is simply open a second bank account. Your original bank account will now only receive 10-20% of your total direct deposit, now they will never raise your credit limit because they think you do not make a lot of money! Why is this good? Now you’re a guy making $100-500K a year and it looks like you only have a credit line of $3K. Guess this means your new applications will all be approved.
Just like hacking your 401K you want to know the tricks.
Final Thoughts: Every time I take a stroll on a date and see people attempting to pull bottles and cans out of the garbage I always turn to my date and say “I wonder why they don’t just go to college campus football games”. Her reaction is always the same.
The day a girl gives me an approving nod I’ll be sure to marry her. Just kidding.
