If you’re like most people who pay their mortgage or rent by using a direct deposit, Automated Clearing House (ACH), or writing a check, this tactic could be a great way to help build your credit, pay your major bills like rent and mortgages, all while earning cash back in the process. Let’s dive into how this works!
Firstly, there is a company called Plastiq. This company allows people to use a credit card to pay major bills like a mortgage company, individual, insurance company, etc. Now, they do charge a fee to process your credit card and make the payments. Plastiq charges your credit card 2.5% for every transaction. Now that may make using Plastiq not so appealing to people without knowing the second half of our tactic - using a cash back credit that at least covers the 2.5% fee. Along comes (drumroll please) the Alliant 3% Cash Back Credit Card from VISA.
The Alliant 3% Cash Back Credit Card
To apply for the Alliant VISA card to earn the 3% cash back, there are a few steps to their application process. Firstly, you’ll notice that Alliant is a credit union. If you’re unfamiliar with credit unions that’s ok - just note that they are unlike most bigger banks like Wells Fargo, Bank of America, Chase, etc., in that they are a cooperative of members who pool their money together. Essentially, credit unions are not-for-profit organizations that exist to serve their members. To apply for the Alliant credit card, you have to first be a member of their Alliant Credit Union. If you are like me located here in GA, or another state other than IL (Alliant being based out of Chicago, IL), there is a little step to complete to become an Alliant member. Take a look at their website to see which one you want to pursue, but I personally did the option of paying $10 to donate to the Orphan Foundation of America to start the membership process.
Once you are a member of the Alliant Credit Union, you are now able to complete the credit card application process. I did mine online, and it was straightforward just like most credit card applications. Once completed, you’ll get contacted afterward and voila, you now have a 3% cash back credit card to cover any Plastiq bills you want to pay and make a small 0.5% in cash back.
Going back to Plastiq, it is an awesome service. It’s also important to note that this tactic of using a credit card to pay companies or individuals applies to many other transactions that are a part of our daily lives. Check out Plastiq’s website for further information about all the services, and here is an example of just a handful of other ways to utilize this tactic to pay:
Using these two resources together is a great way to maximize your earnings
A great way to earn even more cash back, or potentially cut back on the cost of using Plastiq’s service could be:
+.75% Business Tax Deduction
The Plastiq fee can be classified as a business expense on tax returns.
+2% Early Pay Discount
You can now pay earlier and earn better payment terms.
4.75% Potential Value Back
Gain additional value with extra cash on hand and Plastiq referrals.
So if you’re a business owner and using Plastiq to run business expenses through your company with this tactic then you can take advantage of the 2.5% fee Plastiq charges as a business write-off (Thanks Uncle Sam!).
And the last item on their website to alleviate their fees are using the referral codes once you sign up and create your own Plastiq account. Please feel free to use my code to get started, which obviously benefits me, but also adds 500 points to your account on signup. The points equate to how many dollars you can waive the 2.5% fee on (with their website showing up to a total 4.75% value back).
USE REFERRAL CODE: 888120
Now that you are armed with a tactic to build up your credit, pay people and vendors without needing cash in your account, and all of which goes a long way to just make you that much more financially savvy! ;)
I hope you found value in this article, and stay tuned for many more nuggets of financial, real estate, and business gold that I’ll be sharing along your journey.
Cheers to loving where you live!