3 Ways to Earn Passive Income in 2021

We all could use some extra cash, but there's only so many hours in a day to work. For that, we have brought you 3 of the best options to earn passive income this year. Trust us, there's hundreds of ideas, but some of the popular "get rich quick" methods can actually end up costing you money (or friends!).

First, let's break down what passive income is and why it's a great way to make money.

What is Passive Income?

Passive income is money that you earn without doing much to make it, often times through "set it and forget it" methods. Some passive income ideas take a degree of upfront work to start earning, like writing an e-book, and some don’t take any effort at all, such as investing with a robo advisor. We have found three great options that require less work upfront and can help you earn extra cash monthly.

Why You Need It

Diversifying your income streams is a great way to stay financially secure when your situation changes. If we have learned anything in the wake of COVID-19, it's that the world can be unpredictable, and that job security and financial security can change overnight.

Having passive income streams may not replace your entire salary if you were to lose your job, but having extra security or savings is always helpful. It can keep you from depleting your emergency fund and can help keep you from sliding into credit card debt.

Pursuing some of your passive income ideas can also speed your path to financial freedom. Here are 3 ways to start!


Renting your good credit history, otherwise known as selling tradelines requires $0 to get started, and you can earn passive income monthly if you qualify. A credit report tradeline is simply an industry term to describe a credit account. You have credit accounts, therefore you have tradelines.  Tradelines come in the form of credit cards, lines of credit, car loans, mortgages, and payday advances. Here at Splendid Credit we focus solely on credit card tradelines.

The process works by adding authorized users onto your credit cards temporarily (for a month or two, before you remove them), and getting paid to do so. On average, people are earning over $600 a month with some of our customers earning in the thousands every month! Splendid Credit also pays 10% commission when you refer friends and family, so you can earn even more while helping your friends earn money, too!


Fundrise is a real estate investment service that allows you to invest directly in commercial real estate. Fundrise created a marketplace that is fairly transparent, and their goal is to “make the process of investing in the highest quality commercial real estate from around the country simple, efficient, and transparent.” Essentially, they bridge the gap between the investor and the developer.

Fundrise (along with many others) is cutting out the middle-man and the big price tags and allowing you to directly invest. Also, by cutting out the institutions, it should hopefully reduce the overhead expenses and keep fees low. They let you invest as little as $500 at a time and you get to pick the allocation of the funds into different REITs.


Wouldn't it be great to earn passive income for something you already do? Rakuten makes it super easy to earn cash back on purchases from thousands of retailers online, and in store. Simply install their plugin or download the app, and earn a percentage of cash back on your purchases.

Rakuten has helped customers earn over $1Billion in cash back at their favorite stores, and save money with coupon codes. You can also earn an extra $20 by referring friends, who get $20 in cash back when they sign up using your link. Try it here.

Will you try any of these methods of earning passive income in 2021? If you want to see how much you can earn renting your good credit history with Splendid Credit, get an instant online quote on our site!