Business Idea#2: noah's credit card, show me the rewards

October 18, 2005 - Get free updates of new posts here

I will share this idea in hopes people may comment and see if this is smart or a waste of time.

Credit Cards. Okay, so you have a credit card and you can get cash back on some, check out Citibank Dividend card, like 5% off gas/supermarket and 1% off everything else.
That’s tight but I only spend around ~$10,000 a year making me around $250 in rewards.

credit cards

What if I let other people use my card? I would give them some money with the cash back and they can pay me cash to use my card.

Confused? The idea is, never been done but there are tons of people who use atm debit cards or cash and dont get anything back so they are my initial target. For example, my uncle who never uses his credit card but spends tons of month. If he alone is spending ~$50,000 a year and I can take 2% for doing nothing, I am making an easy $500.

Here are some concerns you may have:
1- NO you can’t use my card and not pay me

2- They must pre-pay me before using the credit-card. Hopefully I could limit the amount the card would have and plus they would get a discount on the card since I get cash back from there purchases.

3- If you want to do this kind of stuff now and are desperate for money here are a few ways to make it work.

a) Wait for people going to a gas station or supermarket (you get 5% back) and ask them to give you cash or write you a check to pay for the groceries. Uncomfortable and embarassing, yea, but a way you can make money.

b) Send me a check through the web or use paypal and then I give you an account # if you are buying something online with a preset amount (the amount you give me minus your discount)

c) When going out for dinner just collect the money and put it on your card

3- Give people a discount on using your card if they give you cash. I get 1-5% back so I will give them .5-1% discount for using my card.

I think overall its just the lack of interest or awareness that inspired this idea. Another example is my step-father probably spends b/n $1-5,000 a month on his credit card (probably most spent by my mom). He doesn’t care about points and thinks its insigificant. now take 1 year of spending average of $2,000/month=

$2,000/month * 12 months = $24,000 * 2% rewards = $480 for FREE. yes and now times that by 30 years = $15,000.

and now think about the # of people who don’t care to use credit cards and how much I can gain per person if they just use my card!

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2 responses to “Business Idea#2: noah's credit card, show me the rewards

  1. Cap Reply

    tough to intergrate but i do get ur point.

    there’s a cap on the citibank dividend though.. i think u can get max of $300 per year. (course there’s other cash back cards out there).

    the one-time only virtual card number Citi provides for online shoppin might be helpful in this though.

    not to discourage but there’s a lot of trust issue involved too, no?

  2. Noah Kagan Reply

    yea i think there areTONS of trust issues. i think this is more for family and people you trust who don’t have/use credit cards. you’re right about just signing up for more credit cards if you are limited by max rewards per card