Over the last 15+ years, credit card rewards have earned my wife and I thousands of dollars in free money — in the form of cash, gift cards, and travel — just for buying the stuff we would have bought anyway.
It’s not hard. We just put as much of our spending as possible on credit cards, and strategically sign up for new ones with attractive bonus offers.
And because we pay our balance in full every month, it’s all been at 0% interest.
Some say banks and credit card companies are evil.
I think they’re awesome.
You just have to be smart about how you use them.
In this free guide, I’ll outline:
- Why You Should Care About Credit Card Rewards
- How Credit Card Rewards Work (and why 1% cash back isn’t a great deal)
- How to Pick Which Cards to Apply For (and how often)
- How to Qualify for Business Credit Cards
- Credit Score Myths and Realities
- What’s in My Wallet and How I Track Cards
- Legit Ways to Meet Your Minimum Spending Requirements
You might not think of credit card rewards as a side hustle, but it’s been a profitable hobby of mine for years.
After all, every dollar counts!
Here’s how it works.
Credit Card Rewards: Why Should You Care?
Here are two reasons you should care about credit card rewards:
- Free money
- Free travel
Two of my favorite things!
In this free course, I’ll show you some easy ways to explode the cash back you’re probably currently earning on your spending.
On the travel front, points and miles from credit cards have helped my wife and I earn thousands of dollars in free travel and other benefits over the last few years.
We’ve visited Asia, several spots in Europe, Mexico, and all over the US.
It’s been said that travel is the only thing you buy that makes you richer — and plane tickets are still my favorite thing to buy — but it’s even more fun when you can buy them for free.
How Credit Card Rewards Work (and why 1% cash back isn’t a great deal)
Most credit cards offer some sort of cash back program, usually 1-2% on all purchases, but sometimes up to 5% for spending in certain categories.
This is the bank’s attempt to get you to pull out their card when you make a purchase — instead of all the others in your wallet.
That means if you spend an average of $1150 a month on charge-able purchases like food, gas, entertainment, and apparel (the national household average according to one report(opens in new tab)), you should be earning at least $138 a year in cash back rewards.
It’s obviously not a lifestyle-changer, but then again, it’s free money.
Still, You Can Do MUCH Better
Now if you divided that $13,800 in average annual spending among a few cards with attractive sign-up bonuses, you could earn the equivalent of $1000-2000 in rewards.
A heckuva lot better than $138!
For years, I had just one or 2 cards in my wallet, and would sit back and happily earn my 1-2% cash back. Knowing what I know now, it pains me to think of all the money I left on the table!
What do I mean? The magic really happens when you take advantage of certain sign-up bonuses for new cards — earning the equivalent of 20%, 30%, 40% cash back or more in travel value or statement credit.
Here’s just a really simple example:
The Chase Freedom® Flex℠ Credit Card(opens in new tab) is currently offering $200 as a sign up bonus when you spend $500 in the first 3 months. That’s 40% cash back, or probably 30x better than what you’re earning on your spending right now.
And if your household is anything like ours, it won’t be much trouble to spend $500 on your card in 3 months. Plus there’s no annual fee!
Click here to compare this card with others(opens in new tab).
In summary, 1%, pretty weak; 40%, we’re doing much better.
Now obviously there’s a bit of strategy involved since you can’t just go opening a new account every time you hit the $500 minimum. More on that below.
How (and How Often) to Pick Rewards Cards
Before you dive in, there are a few “rules” to keep in mind in this game.
The 3-Month Cooling Off Period
First, you don’t want to apply for credit cards in quick succession. Instead, I recommend waiting at least 3 months in between applications.
Each application is a note on your credit score. If you’re seen to be applying for too much credit in too short a window, it can raise a red flag — hurting your credit score and making it harder for your application to get approved.
Now, I’m not saying I’ve never broken this rule … but think of it as a general guideline or best practice.
The 5/24 Rule
The 5/24 rule(opens in new tab) is specific to rewards credit cards issued by Chase. It dictates you can’t open more than 5 accounts with Chase in a 24 month period.
The reason this one comes up is because Chase is one of the largest card issuers and has some of the most attractive cards.
Double Dipping
If you’ve been going after credit card rewards for awhile, you might want to apply for the same card you did in the past.
In most cases the banks are OK with this to try and win back your business, but each financial institution has different rules on whether or not you’re eligible for the sign-up bonus again, whether your current card needs to be cancelled, and how long it’s been since your last bonus.
(Probably not an issue if you’re just starting out, so I wouldn’t stress too much about it.)
How to Evaluate the Best Credit Card Rewards Offers
Like we’ve discussed, credit card rewards come in two main “flavors”: cash back and travel. But how do you know what’s a good deal and worth applying for?
Check the video to find out:
My Cash Back Card Recommendation for Starting Out
You can check out the current offers on cash back cards here(opens in new tab).
Credit cards like the Capital One Quicksilver Cash Rewards Credit Card(opens in new tab) offer a $200 sign-up bonus after you spend $500 in your first 3 months — with no annual fee. That’s up to 40% cash back!
Learn more here(opens in new tab).
If you know you’re gonna spend $500 in the next 3 months, that’s #freemoney. This card also gives you one of the highest cash back rates, with unlimited 1.5% back on every dollar you spend.
My Travel Card Recommendations
You can check out the current offers on travel cards here(opens in new tab).
Travel rewards credit cards come in 3 main categories:
- General — points and miles can be used across a variety of outlets (Issuers like Capital One, Chase).
- Hotel — points can be used at certain hotel brands (Marriott, Hilton, SPG, Hyatt).
- Airline — points can be used on certain airlines (Delta, American, Southwest).
Capital One Venture Rewards Credit Card
My favorite rewards card is the Capital One Venture card(opens in new tab), which offers “double miles” on all purchases. You can trade in your miles for statement credits, gift cards, or travel purchases.
Capital One is currently offering a 75,000 mile sign-up bonus (worth $750 in travel), after you spend $4,000 in the first 3 months.
There’s a $95 annual fee.
Click here to learn more about this card and others(opens in new tab).
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card(opens in new tab) also has a strong bonus with 60,000 bonus points (worth over $750 when redeemed for travel) after spending $4,000 in the first 3 months.
What’s cool about the Chase’s program is you can transfer points 1-for-1 to lots of travel partners including United and Southwest. (Or you can book directly through Chase’s rewards portal.)
There’s a $95 annual fee.
Click here to learn more about this card and others(opens in new tab).
Southwest Rapid Rewards® Priority Credit Card
For domestic travel, we’re all about Southwest.
In fact, one year we flew to Seattle, Chicago, Washington DC, Dallas, Orange County, Charlotte, and Las Vegas — all free on Southwest points.
The Southwest Priority Credit Card(opens in new tab) comes comes with a free Companion Pass® good through 2/28/26 plus 30,000 points after you spend $4,000 on purchases in the first 3 months from account opening.
(Those points alone are worth an estimated $450, and the Companion Pass could be worth thousands depending on how much you fly!).
This one comes with a $149 annual fee, which is offset by the $75 automatic travel credit issued on any Southwest purchase, and 7,500 bonus points on your cardholder anniversary (worth up to $112).
Click here to learn more about this card and others(opens in new tab).
How to Qualify for Business Credit Cards
As a side hustler, you’ve practically doubled your options for credit card rewards by being able to apply for business cards.
You already know you should be keeping your business income and expenses separate from your personal accounts, and a business credit card can help make that easier.
What Qualifies as a Business?
This probably doesn’t come as a shock, but to apply (and get approved) for a business credit card, you DO need a business.
Now if you’re side hustling, you’re probably already in business — even if it doesn’t feel like it.(opens in new tab)
If you ever do freelance work(opens in new tab), sell stuff on Ebay(opens in new tab), run a blog(opens in new tab), or do tutoring(opens in new tab), all of those could count as a business.
Do I Need to Register My Business?
By default, you’re already set up as a sole-proprietor. You don’t need to create an LLC or incorporate to apply for business credit cards.
Your business also doesn’t need to be profitable or even to have any revenue at all. Most startups have some expenses early on, and for better or worse, banks are often happy to lend you those startup costs.
(Of course, don’t spend money you don’t have.)
If you are “pre-revenue”, that’s OK. Just fill out the application as accurately and truthfully as possible!
Do I Need an EIN?
An EIN, or Employer Identification Number, is also not required to apply for business credit cards.
(Though it’s free to get one at IRS.gov(opens in new tab), and you may need one to open a business bank account.)
Most applications will ask for your social security number anyway.
My Recommended Business Credit Cards
You can check out the best current offers on business credit cards here(opens in new tab).
Chase Ink Business® Cash Credit Card
The Ink Cash card(opens in new tab) currently carries up to a $750 sign-up bonus after spending $6000 in the first 6 months.
($350 after spending $3,000 in your first 3 months; an additional $400 when you hit $6k in spend during your first 6 months.)
I like this one because there’s no annual fee, and you can earn up to 5% cash back on your first $25,000 in spending in certain common business categories.
Click here to learn more and compare this card with others(opens in new tab).
Chase Ink Business Preferred® Credit Card
The Chase Ink Business Preferred card(opens in new tab) can earn you a 90,000 point sign-up bonus (worth $900 cash back or $1,125 toward travel when redeemed through Chase Travel℠), after a $8,000 minimum spend in the first 3 months.
Where it gets really fun though is this card offers 3x points on your first $150,000 in spending on travel and other select business categories like advertising. If you’re spending ad money on Facebook or Google, this will add up fast!
For instance, when I was running my shoe business(opens in new tab), I was spending $500-1000 a day on advertising, and racking up a ton of credit card points.
Click here to compare this card with others(opens in new tab).
Will This Hurt My Credit? Credit Score Myths and Realities
Applying for credit cards can impact your credit score, but probably not in the way you’re thinking.
There are a few main factors to consider, and I’ll address those below. However, the biggest thing is to be a responsible borrower: don’t spend money you don’t have, don’t max out your cards, and don’t pay late.
Inquiries
Each time you apply for a new credit card, that counts as a “credit inquiry” on your credit report.
Generally speaking, inquiries are OK, and each one will only ding your score perhaps 3 points. But too many inquiries in too short a time is a red flag to the banks and to your credit score.
Banks are risk-averse and to them, it’s like, “Whoa, why is this person suddenly in need of so much new credit?”
That’s why I recommend only applying for 1 card every 3 months.
Open Lines / Credit History
The longer you have an open credit account in good standing, the better.
That’s why keeping a card forever, especially one with no annual fee, can help your credit age.
Credit Utilization
Credit utilization is the amount you have charged divided by the amount you could charge. Basically, how much of your available credit line are you using?
This is where having multiple cards can actually help you.
Banks and credit monitoring services want to see low credit utilization — below 30% is a general guideline.
That means if you have $10,000 in available credit, but keep less than $3000 charged, you’ll be in good shape here. It’s a signal that you’re a responsible borrower — you have all this money available to you, but you only use a small portion.
My Actual Credit Score
I found a cool free service from Capital One called CreditWise(opens in new tab) that will give you your actual credit score for free, even if you’re not a Capital One customer.
Here’s what came back when I signed up:
So no, as long as you’re a responsible borrower and credit card user, you don’t have to worry about this harming your credit.
What’s in My Wallet and How Do I Track Cards?
I created a spreadsheet in Google Docs to help me keep track of the various credit cards I have, their benefits, and the annual fees.
You can save a copy for yourself here(opens in new tab). (Just be sure to hit File > Make a Copy, before you add any of your own info.)
How to Meet Your Credit Card Sign-Up Bonus Minimum Spending Requirements
If you plan ahead a little bit, it’s usually not hard at all to meet your minimum spending requirements.
Especially for the cash back cards(opens in new tab) we looked at — our family can easily find $500 worth of groceries, utilities, insurance, or other expenses.
Here are some of the common things we buy to meet the minimum spend:
- Transfer over all recurring monthly payments — Internet, TV, cell phones, Netflix, life insurance, utilities.
- Make the card your “daily driver” for every day expenses like gas and groceries.
- Plan big purchases around new credit card sign-ups. That could be stuff like furniture or flights.
- Group or family purchases. When you’re out to dinner with friends, offer to pick up the tab and have everyone give you cash.
- Car repairs.
- Medical expenses. With two young kids in the house (and an injury prone dad!), we sadly have had quite a few doctor bills lately!
- Charity donations. Win win!
For business cards, here’s how I typically meet my minimums:
- Recurring expenses like hosting and software
- Contractor payments
- Pre-paying for software or licenses
- Conference registrations (and flights to those conferences)
- Equipment like webcams, monitors, or a new laptop
- Inventory purchases. My experiments with the Amazon FBA business were great for meeting minimum spend requirements!
The bottom line is to be intentional about using the new card and don’t sign up for something if you can’t see how you’ll reach the minimum spend required for the bonus.
Two Rules for Responsible Credit Card Rewards
1. Don’t spend money you don’t have.
2. Don’t buy crap you don’t need(opens in new tab).
Maybe this isn’t a truly entrepreneurial side hustle, but it does save me and my wife pretty significant money each year — dollars that go directly to our bottom line.
And that’s the same as earning more, right?
Refinance High Interest Debt
If you’re carrying credit card debt already, signing up for new credit cards probably isn’t for you. Instead, focus on paying back the debt first.
One resource that might be helpful is Credible(opens in new tab).
The company has helped thousands of customers reduce their student loan payments, and they offer personal loans for debt consolidation as well.
How to Power Up Your Rewards
There are several apps that will give your credit card spending a free extra boost.
Among my favorites are:
- Fetch Rewards(opens in new tab) – Scan receipts with this app to earn rewards and cash in for free Amazon gift cards (or other stores).
- Ibotta(opens in new tab) – Check your grocery receipts for special cash back offers. I’ve gotten as much as $5 back on single items so it pays to check!
- Pogo(opens in new tab) – Pogo pays you for sharing your location data and linking your credit card statement. You can cash out via Venmo or PayPal. Check out our full Pogo review for more.
- Receipt Hog(opens in new tab) – Users report earning $25 a year from this easy receipt-scanning app. Here’s our full Receipt Hog review.
- CoinOut(opens in new tab) – Featured on Shark Tank, CoinOut has similar functionality to Receipt Hog. Check out our full CoinOut review for more.
- Upside(opens in new tab) – Upside offers savings in the form of cash back for filling your tank at partnered gas stations and up to 35% back on grocery purchases at participating stores.
Check out our full list of apps that pay you for more!
Your Turn
What’s in your wallet? Take action today and start working on a new sign-up bonus.
Once you learn about the offers and opportunities out there with credit cards — and start to reap the rewards — I think you’ll be as hooked as I am!
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