I use credit cards to earn reward points for almost all my spending. Therefore, I generate a small passive income while spending money for my needs. But, don’t think that I am spending too much money in order to collect more points, actually I collect points while doing our regular shopping like groceries, gas, and when I paying my bills. Of course, I pay off the balance by the end of the month in order to avoid the interest charges.
I have multiple credit cards, and maximize the points by using different cards at different situations. For example, I use MBNA Smart Cash Mastercard groceries and gas, President’s Choice (PC) Mastercard to pay for bills, and whenever I receive any promotional offer I use RBC rewards card to collect RBC reward points.
Last month, I received pre-approved Scotiabank American Express gold rewards card that offers even high rewards points – 4 points for every $1 spend on groceries, gas, restaurant and entertainment.
RBC rewards pointsRecently, I was able to pay $75 using RBC rewards points, and it was an absolutely free-passive income.
No annual fee RBC rewards card offers 1 point for every $2 you spend and each point worth 0.00581 cents. Therefore, you could earn 0.29 cents for every $100 you spend. It is not worth when you compare with the other rewards cards such as MBNA Smart Cash (earn $2 for every $100) or Amex gold ($4 worth travel points for $100) or PC Mastercard ($1 for every $100), but it is worth to use when you have promotion reward offers.
PC Mastercard pointsUsing PC mastercard, I can buy $60 worth of groceries using available PC points in any Loblaws stores (No frills, Independence store, etc).
Air Miles cardIn addition, I use Air Miles card along with the credit cards to earn more reward points in some stores. For example, Metro and Shell gas station you can earn 1 Air Mile points for every $20 you spend. Also, you can earn extra Air Mile points when you fill out an online survey and also you can get bonus points when you do cash redeem towards purchases at the stores or gas stations.
Earn more than $750 per yearHopefully, I can earn more than $750 worth of points per year using reward credit cards and Air Miles card when I use them for my regular shopping. So, I can go for a free vacation every few years using those reward points :D.