Making Money with Your Credit Card

I use credit cards for emergencies not pleasure. I still don't understand y people don't get that yet which makes since. good one John :cool:

While some above are positioning the Starwood Amex card as having the biggest bang for the buck, the Hilton HHonors Amex card actually offer almost double the value of the Starwood and beats out cash cards -- even Plum.

Nice post, John, but I only use my CIBC Aerogold card when they won't give me a discount for cash. I would rather get 1-2% discount at the time of sale than wait for any kickback. Many businesses will prefer to give me a discount rather than give the CC company 2-3% in credit card fees.

I always pay with Credit card because of this, but I'm not quite at the level that you spend at yet...haha...soon though :wink:

I guess I would be considered financially illiterate, I don't use my credit card because I do not feel comfortable doing so.

what did u spend ur money on? advertising? conventions?

Another point to add for those who use pay per click a lot - work in the effect of 1% cash back on all your ad spending. It should help boost the ROI for your campaigns.

So you insult those of us that don't use credit cards, and that's supposed to motivate us to clink on your link so that you get paid!?!?
Yes, this will be the last time I ever visit your site.

I know a lot of friends with similar type of credit cards, cash back, air miles, get discount buying cars, etc...however, I always stick with 2 credits cards, one that I use to collect grocery points (maybe I should get a cash back one instead) and another one as a spare. I am hesitant to apply for extra credit cards becoz I was told that if you want to get a mortgage later, too many credit cards will not do you any good?

So what did you buy for over $100,000 ? :mrgreen:

There are some people who make money out of everything, you seem to be one of them - who sees an opportunity in everything.

Good post however, to the common man(peasant) this is not anything really obtainable. Think I have earned a whopping $10 off my Discovery card all year. Yeah, the card that pays me back.......

Hehe
I'm sure you have a lot of fun spending around 10K per month with your credit card, but given the amount of times you wrote about the Black Amex I'm sure you're still a bit jealous of Neil and the other guys who got black plastic. :evil:
jus kiddin

That's a good one, you sound like making money out of EVERYTHING.

Good job Chow

That's a nice cheque. Maybe I should switch to TD... my RBC Rewards aren't really pulling their weight these days.

You could also use your credit card to buy Visa gift cards and then with the Visa gift cards buy US Postal money orders. Deposit the money orders into your bank account and then immediately pay off your credit card bill with the cash in your account using an online bill payment. That way you get the full credit card rewards ie points, cashback, miles etc and you dont incur interest. But that would be very evil! :twisted:

so . . what was the annual interest rate? I mean, if you're getting charged more than 1% of another card without the rebate plan, doesn't that mean you're not really making money? :shock:

Well that was easy money for you eh John.

You can also use your credit card to invest. If the right deal comes along.

This post was so simple, but so true, and shows the true difference in philosophies between those who understand debt leverage, and borrowing money versus, those who do not. Good Post!

Credit card again. Ok a good posting and which narrates the possiblity of credit card in money making by spending money. Thanks. :lol:

The MBNA Starwoods Mastercard gets you the biggest "bang for your buck" if you are comparing dollars spent to the value of the reward. The points can be used at any Starwood hotel room within the chain worldwide, and those savings can be huge compared to a 1% cash return.

For example, your $112,554 would equal 56277 points, plus 15000 bonus points. That's 71277 in points. You could take that and stay at the Sheraton Jumeirah Beach Resort & Towers in Dubai (category 5; really nice hotel, went inside last xmas) for 1600AED/night ($434CDN/night), or 12000 points/night. That's about six nights free with the points you have, which is worth $2604CDN, more than double of the check above! ;)

If you had a CIBC AEROGOLD VISA, and you spent $120K, you would get 120,000 points. Maybe an extra 25,000 points for signing up.

That's enough for 2 round trips tickets to Europe (60K x 2) including a free stopover. It would cost MUCH more than $1200.

Yes, the card costs $120/year, which has to be factored in.

You see, I am more evil than John Chow!

That's a freakin' sweet rebate! Even if people like me can't get rebates in your price range (YET!), we can still make use of these cards. 1% probably doesn't do much for me. I really don't care too much about getting 30-40 dollars back. I would blow that on a couple of beers. But, bonus points and airmiles are more of an incentive for people at my level. They have a "fun" value in adding them up and saving them for purchases.

BUT, once I start making John Chow type dollars I will switch over to a dividend card!

I just scared to using my credit card...
I ain't rich like you John Chow ...
Maybe I will use credit card if I get earning like Stephen CHow,..
Ha ha ha..

John,
Thanks for sharing that great info. on how to make money
using your credit card. That is sweet your going to use it
on Valentines Day with your Wife :) She will love that I'm sure!
Congrats on the rebate!

~Katie :grin:

fidelity has a nice card if you have an account with them 1.5% cash back - 5000 points = $75 in your account -- not a bad deal if you ask me....John that would have been an extra $575 in your pocket!

This was a great post. I hate some of those financial gurus like Dave Ramsey who preach cutting up your credit cards, even if you pay them off every month. I earn a lot of bonuses every year with my credit cards because I use them for EVERYTHING and pay them off in full each month.

But, you're right that there are a lot of people out there that think they can charge everything they ever wanted when they've got plastic with them, and they get into debt.

On top of this rebate, you also earn interest on the cash sitting in the bank while the credit card company gives you a 30 day term.

"financially illiterate"

I wouldn't go that far.

Theres plenty of millionaires that i aren't financially illiterate who dont have credit cards. Its just the penny pinchers you want their 1% rebate each year that bother with an end of the month bill. Those that have a serious amount of cash just pay out of their cash accounts.

I bet John will claim the tax back on the pocket money he gives to his kid if he blogs about it on here.

That's the only way to do it John. If you don't pay off your balance every month you are throwing away your money. Reward cards are great, we use ours to earn points and pay our car insurance.

Always good to get cheques in the email. Makes it happy when it came from credit card company. Congratulations.

Studies show on average people spend more with credit cards compared to paying cash. On average it is 20% more but hey, not everyone.

I would have preferred CIBC Airmiles gold or Some other affinity cards which will pay me 2% back. Sure there is annual fee but it is much lower than 1% you miss when you spend that kind of money.

I think this post last year is what got me reading johnchow.com, what a ridiculous amount to get back via dividend payment. I got 12 bucks back for 2007 :) But you're right, pay by CC and make some money back, it's a great idea.

Credit is the way to go, the bonuses are endless ... my last trip home i upgraded to business class with my CC points .... makes a big difference.

Hmmm, interesting. I thought I was financially literate to avoid using credit cards.

Congratulations on the rebate. This would certainly influence me when I sign up for a card of my own. :mrgreen:

Woowww spending and earning...

When I click "credit card site. " It takes me to Smilly Central :shock:

thank you, john

Wow, John. I'd sure love a 100K to spend and get that one thousand back. Ha!

...Not everyone is a John Chow ya know.

-Mike

Wow, you are a douche. Maybe you should pay to have someone remove your head from your ass.
Nice turtle neck. Pull it up a little further - we can still see your face.

Wow, I never knew you could do that. I don't have a credit card yet. I guess I should find out which is the coolest out there and have a go at it myself. Thanks for the helpful tip.

wow..JC you eat all day long at the fine restaurants - no wonder the cards charge is high..

by the way brother of evil is wishing you Gong Xi Fa Chai

wow! you made it john.
i must try this and look if i have luck with this one