TD Visa Sends Me Money

The good news seems to keep rolling in. Today, when I went to check my mail, I see a letter from TD Visa. Inside was a check for $1,030.65. The amount represents the yearly “dividend” I earned for using my TD Gold Elite Visa. My Visa is known as a cash back credit card. In this case, it gives me 1% cash back on everything charged.

Someone with a quick mathematical mind (or a calculator) will be able to figure out that in order to earn $1,030.65 in cash back dividend, I had to charge $103,065.00 to my Gold Visa in 2006. This begs the question; how much did I spend eating out? Well, many charges are business related. All TTZ related travels are charged to the Visa, along with cost of hosting the TTZ network servers and other business expenses.

I always charge purchases to my Visa card if a merchant accepts it. Yes, I can pay cash for it but why would I if I can get 1% cash back? This is the smart way to use a credit card. Instead of paying cash, you charge it, earn 1% cash back, or some other reward (like Air Miles), and pay the card off when the bill comes.

You have to be very careful with reward credit cards however. They can twist your thinking – instead of thinking how much something cost, you start thinking how much cash back youโ€™ll get and forget that you have to pay the bill when it shows up. Do too much of that and youโ€™ll soon find yourself running a balance and incurring interest charges, which will not be offset by any reward you will get. This is how people fall into the credit card trap.

Although I charged over $100,000 to my Visa last year, I am happy to report I was able to pay off the full balance every month and incurred zero interest charges. Now I have to decide how I’m going to spend this check. Valentineโ€™s Day is coming up so I may blow it on a huge night on the town with Sarah.

I will charge the night out on the Visa of course. ๐Ÿ™‚


22 thoughts on “TD Visa Sends Me Money”

  1. You could get some of those 6ft roses people have been talking about lately. (my blog included) If they weren’t in such high demand. But then again you’re John Chow, maybe you could pull some strings. ๐Ÿ˜‰

    http://www.organicbouquet.com/p_627/luxury-gift-roses.html?categoryid=12

  2. Soultrance says:

    Visa reward cards are fantastic. I was bad a few years ago and ran a visa bill up that I couldn’t pay off, but later got a line of credit with a substantially lower interest rate to pay off the visa, and now I’m paying down the LOC at a much lower interest rate. I still, however, use my points visa for as many purchases as possible. Anytime I use it I tally up my recipes when I get home and transfer the money from my bank to my visa right away. It’s a great way to earn free money/points/stuff without much danger. As long as you can keep the bill paid off, it’s worth it.

    What kind of yearly fee is on that Visa John? Surely it can’t be a freebie with cash back.

    1. John Chow says:

      The card cost $100 a year but it does come with a lot of features besides the unlimited 1% cash back.

  3. Nick says:

    Hi John, I love your money saving tips. What are your thoughts on the AMEX?

    It has different levels of payouts, and gives upto 5% on some purchases.

    1. John Chow says:

      I recommend many people to get the Blue Cash for Business. It has lots of nice features, but the personal one is good too. I don’t think the feature set is the same between the Canada and US Blue cards however.

  4. Nate W. says:

    I would recommend a stretch Hummer limozine and a bottle of Hennessey. Don’t forget the roses and condomz!!!1

    1. John Chow says:

      A hummer limo? I live in Vancouver, not Las Vegas! LOL

  5. joe blogs says:

    Sounds like a very good credit card deal. I’d spend that money on a top of the range cell, and a nintendo wii

  6. Jeff says:

    hahaha good call…

    I have a Canadian tires options mastercard.. except i do have a balance I’m paying interest on. But hey, it got me through the low times when my business wasn’t as busy so it’s all good.

    The woes of being self-employed I suppose. But nonetheless, it’s a wise way to spend money if you can do it that way. I’ve gotten over $100 in free stuff from Canadian Tire over the last year and a bit more.

  7. Ryan says:

    That’s a nice little surprise… maybe you can use that check as your next prize to give away. ๐Ÿ˜€

    1. Jane May says:

      I agree with Ryan…great call! :-p

  8. Andrew Kuo says:

    $100K, just shows how much success John has with his online career

  9. How about donating it to a charity?

    1. Marc says:

      A guy’s gotta eat ๐Ÿ™‚

      From what I understand John already donates a very reasonable amount to charity. Let the man splurge ๐Ÿ™‚

  10. Alex Shalman says:

    The infamous John Chow is romantic!

    What don’t you do John?

  11. Marc says:

    The credit card trap is very, very dangerous indeed. Glad to hear you’re sticking it to them by paying 0 interest though.

    Enjoy yourself with the money. Can’t spend an out of the blue windfall any better than on your special someone on Valentine’s ๐Ÿ˜‰ Hope you two have a great time.

  12. derrich says:

    Cash sounds great! But folks in the U.S…esp those with kids ought to consider Upromise…and earn more. We don’t all spend money (because we don’t have it) like John, but you’d be surprised how much you can save for your kiddos.

    http://www.derrich.com/2006/10/23/upromise%c2%ae-and-saving-money-for-college/

  13. Jane May says:

    Can’t wait to see pictures from this V-day ๐Ÿ™‚ She must be expecting a pretty nice dinner

  14. Nomar says:

    Thats a lot of money you spend there ๐Ÿ˜› wow man

  15. Hi John:

    I found your website from a column in the Ottawa Citizen. I write a personal finance blog called Canadian Capitalist myself and thought I’d comment on this post.

    I don’t know if you want to consider the AMEX Costco credit card. I have one and the cash back is in the form of a Costco coupon. They have a tiered benefit structure, but for your spending level, you could get a rebate of 1.5%. Of course, it is pointless if you do not shop at Costco, but we do and it is very nice to get the money back every year.

    1. John Chow says:

      Thanks for the feedback. I believe the Costco Amex has a $50,000 cap. Charge more than that and you get nothing back.

Comments are closed.