Ever wonder how credit card points actually work? I'm sure you've seen Cashback in Santa's free flights bonus incentives. but who's actually paying for this stuff? What if I told you that those free flights are actually coming out of the pockets of people who don't use credit cards? You see, credit card companies are only able to afford these incentives by charging fees and interest with the cash cow of these companies coming from. The Interchange fee that is actually passed to the merchants of where you're swiping your credit cards at. And with all these crazy rewards and incentives Merchants are just raising the price of their goods and you as the consumer is paying for that.

Which means naturally these credit card companies are making their money right away on these interchange fees the second you swipe your car. And since credit card users are getting some points and making money by using their card, the people getting left in the dust are the ones paying via debit card or cash. So you can avoid this by one obviously paying with your credit card on every single purchase that you make, two paying no interest on these credit cards every month, and then three avoid getting cards with Annual fees if you want to learn more. Full video on my YouTube channel.