Most people say you should stop using the cards completely once you get the balance down to zero. I disagree with that point because when you have a zero balance you can make a profit by using the rewards card.

Credit CardsI have a Chase rewards card that gives cash back on purchases which is the ONLY card that I carry around with me. This card has a zero balance and I use it for all my purchases. I would use it for my rent but the limit on the card is not high enough and Chase will not let me make an overpayment on the card.

The card pays 3% on the top spending categories for the month and 1% on everything else. It would be really great if I could get that 3% off the rent but Chase has not increased the limit on that card as yet so I can’t get it.

Since I have a zero balance on the card I end up not paying interest on my purchases. I simply get my totals on receipts and send payments before the interest is due on the card. Now I have to manually go to my interest bearing checking account at ING to get the payments sent out but it is worth the effort. All I have to do is authorize a payment to be sent to the credit card and then I forget about it. The payments go through before the grace period is ended so I do not get interest charges on the purchases, but I do make the cash back for using the card.

Now since Chase offers a $50 bonus if you make $200 in cash back on the card this is even more of an incentive for me. It is really nice to make $200 in cash back but then to be able to redeem it for $250.

Making an additional $50 is a sweet return on your purchases if you can manage to not pay the interest on the card. So that is why I will NOT stop using my credit card. Why should I when I can make some money off it and not pay any fees?