Miles & Points Credit Cards

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How to Use Credit Cards for Big Travel with Small Money.

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Miles & Points Credit Cards

  1. 1. © 2013 Million Mile Secrets, LLC, All Rights ReservedIntroductiontoMiles & Points Credit Cards
  2. 2. © 2013 Million Mile Secrets, LLC, All Rights ReservedDaraius Dubash
  3. 3. © 2013 Million Mile Secrets, LLC, All Rights Reserved- 5 Dangers of Credit Cards- Credit Scores- Types of Credit Cards- Evaluating Credit Cards- Minimum Spending- Category Bonuses- GoalsAgenda
  4. 4. © 2013 Million Mile Secrets, LLC, All Rights ReservedThanks To Credit Cards!
  5. 5. © 2013 Million Mile Secrets, LLC, All Rights ReservedHow many have rewardscredit cards?How many?How many miles did youearn with them last year?
  6. 6. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Credit Cards- Debit Cards- Shopping- Dining- Banking/Investing- Promotions- Asking nicely!- Partners- FlyingEarning Miles & Points
  7. 7. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  8. 8. © 2013 Million Mile Secrets, LLC, All Rights Reserved1 MILLION+ miles/points in2011 & 2012
  9. 9. © 2013 Million Mile Secrets, LLC, All Rights ReservedMillion Mile Secrets Credit Score
  10. 10. © 2013 Million Mile Secrets, LLC, All Rights ReservedOnly 240,000 Miles to the Moon
  11. 11. © 2013 Million Mile Secrets, LLC, All Rights Reserved5 Dangers of Applying for Credit Cards1. APPLYING FOR LOTS OF CARDS2. NOT PAYING YOUR BALANCE IN FULL3. SPENDING MORE4. YOUR CREDIT SCORE MATTERS5. BUYING A HOUSE
  12. 12. © 2013 Million Mile Secrets, LLC, All Rights ReservedCan Not pay your balance in FULL eachmonthDo NOT Apply If You…
  13. 13. © 2013 Million Mile Secrets, LLC, All Rights Reserved…for LOTS of Cards the First TimeDo NOT Apply …
  14. 14. © 2013 Million Mile Secrets, LLC, All Rights ReservedHave a Low Credit Score
  15. 15. © 2013 Million Mile Secrets, LLC, All Rights ReservedHave amortgage in thenext 2 yearsDo NOT Apply If You…
  16. 16. © 2013 Million Mile Secrets, LLC, All Rights Reserved- How it works- Sign-up for card and get sign-onbonus (25,000 miles to 100,000 miles)- Usually have to spend a minimumamount, e.g $3,000 in 3 monthsEarning Miles & Points – Credit Cards
  17. 17. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  18. 18. © 2013 Million Mile Secrets, LLC, All Rights ReservedWill my credit scorego down?
  19. 19. © 2013 Million Mile Secrets, LLC, All Rights Reserved3 Credit BureausFICO Score: 700+
  20. 20. © 2013 Million Mile Secrets, LLC, All Rights ReservedCredit Score
  21. 21. © 2013 Million Mile Secrets, LLC, All Rights ReservedFree Credit Score
  22. 22. © 2013 Million Mile Secrets, LLC, All Rights ReservedBanks Are Smart- Chase lets you get bonus fordifferent type of card- United Explorer vs. Southwest-AMEX cards 1 year aftercancelling-Bank of America/Barclays
  23. 23. © 2013 Million Mile Secrets, LLC, All Rights Reserved1) Transferable Points2) Airline/Hotel Cards3) Cash Back3 Types of Credit Cards
  24. 24. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  25. 25. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Flexibility, flexibility, flexibility!- Sharing points with family/friends- More Partners = More Options- Don’t forget about partners ofpartners- Don’t put all of your eggs in one basketThe Case for Transferrable Points
  26. 26. © 2013 Million Mile Secrets, LLC, All Rights Reserved1a) Chase Ultimate RewardsTypes of Credit Cards -Transferable
  27. 27. © 2013 Million Mile Secrets, LLC, All Rights Reserved- 1:1 transfer partners with Southwest, United, BritishAirways, Korean, Hyatt, Marriott, Priority Club andAmtrak, Virgin Atlantic- You can combine points with spouse/partner- No fees when transferring to airlines!- Points post right after statement closes- No transfer bonusesChase Ultimate Rewards
  28. 28. © 2013 Million Mile Secrets, LLC, All Rights ReservedTransferring to Hyatt
  29. 29. © 2013 Million Mile Secrets, LLC, All Rights ReservedTransferring to United
  30. 30. © 2013 Million Mile Secrets, LLC, All Rights Reserved- 40,000 Points after $3,000 within 3 months- 2X points on Travel & Dining- Worth $400 Cash Back, $500 in Travel orMore if Transferred to Hotel/Airline PartnersChase Sapphire Preferred
  31. 31. © 2013 Million Mile Secrets, LLC, All Rights Reserved1b) American Express Starwood (SPG)Types of Credit Cards - Transferable
  32. 32. © 2013 Million Mile Secrets, LLC, All Rights ReservedStarwood Hotel Redemption
  33. 33. © 2013 Million Mile Secrets, LLC, All Rights Reserved1b) American Express Starwood (SPG)- 25,000 Points after $5,000 in 6 Months- 5,000 Point Bonus For Transferring 20,000 Points- 2.7% Foreign Transaction FeeAmerican Express Starwood
  34. 34. © 2013 Million Mile Secrets, LLC, All Rights Reserved1c) American Express Membership RewardsTypes of Credit Cards - Transferable
  35. 35. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Earn 1 point per $1 spent- Premier Rewards Gold is 3x on airfare and 2x ongas & groceries- Points go into pending status for amonth after statement closeMembership Rewards Basics
  36. 36. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Transfer to anyone- Link (not enroll) their account to your accountmembershiprewards.com -> Points Summary ->Bottom RightFlexibility
  37. 37. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Recent Bonuses:Delta: 50% and 25,000 MQMs, 40%, 30%, 20%, 10%British Airways: 50%, 40%, 35%Virgin Atlantic: 15%Starwood: 50%Transfer Bonuses
  38. 38. © 2013 Million Mile Secrets, LLC, All Rights Reserved4) For The Category Bonuses-E.g. American Express Premier Rewards Gold3X Points Airfare; 2X Points Gas/ GroceriesAMEX Premier Rewards Gold
  39. 39. © 2013 Million Mile Secrets, LLC, All Rights ReservedTypes of Credit Cards – Airlines
  40. 40. © 2013 Million Mile Secrets, LLC, All Rights ReservedPerks :- Free bags- Priority boarding- Less miles for redemptionsTypes of Credit Cards – Airlines
  41. 41. © 2013 Million Mile Secrets, LLC, All Rights ReservedBest Deals (Sign-up Bonus):- Citi American Airlines cards for 50,000 Miles- 1 Free Bag & Priority BoardingEarning Miles & Points – Credit Cards
  42. 42. © 2013 Million Mile Secrets, LLC, All Rights ReservedTypes of Credit Cards – Hotels
  43. 43. © 2013 Million Mile Secrets, LLC, All Rights ReservedCould be worth paying fee for:- Free night certificates- Elite Status- Discounted award redemptionsTypes of Credit Cards –Hotel
  44. 44. © 2013 Million Mile Secrets, LLC, All Rights ReservedHotel Credit Cards- Chase Hyatt- Citi Hilton Reserve- Club Carlson
  45. 45. © 2013 Million Mile Secrets, LLC, All Rights ReservedTypes of Credit Cards – Cash Back
  46. 46. © 2013 Million Mile Secrets, LLC, All Rights ReservedTypes of Credit Cards – Cash Back- 1 to 2% on purchases- ~5% on categories- Easy to understand- Good for coach travel
  47. 47. © 2013 Million Mile Secrets, LLC, All Rights ReservedCash Back$5,000 business class ticket = $250,000spending (2%)80,000 points on AMEX SPG = 100,000American Airlines Miles
  48. 48. © 2013 Million Mile Secrets, LLC, All Rights ReservedHow Many Cards?Do what you’re comfortable withOR
  49. 49. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Not approved online- Max out available credit or toomany inquiriesReconsideration
  50. 50. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Call Reconsideration Department after applying- Relationship, Credit Worthiness, Business Info- Good reason for wanting card- Show that you’re not a credit risk- Hang Up and Call Again!- Write a letter to CitiReconsideration
  51. 51. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Amazon Payments $1,000 per month free- Pay Rent with William Paid- Pay Mortgage with Charge Smart- Charge Everything to Card- Buy Gift Cards & Use LaterComplete Minimum Spending
  52. 52. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Retention- Citi great at offering incentive to keepcard- I’m thinking of cancelling card- Annual Fee- BenefitsEarning Miles & Points – Retention
  53. 53. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Evaluate after 9 to 10 months- Any benefits for keeping card?- Ask for retention- Worth the fee?Cancelling Credit Cards
  54. 54. © 2013 Million Mile Secrets, LLC, All Rights ReservedHow to Evaluate Credit Cards?
  55. 55. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  56. 56. © 2013 Million Mile Secrets, LLC, All Rights ReservedBig Sign-Up Bonus!
  57. 57. © 2013 Million Mile Secrets, LLC, All Rights Reserved1) Big Sign-Up Bonus- E.g. 40,000 Point Chase Sapphire Preferred- 50,000 Point American Airlines4 Reasons to Get a Credit Card
  58. 58. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  59. 59. © 2013 Million Mile Secrets, LLC, All Rights Reserved2) Most Rewarding for Actual Spending- E.g. American Express Starwood earns 1.25 miles per $1- E.g United Club Card earns 1.5 miles per $14 Reasons to Get a Credit Card
  60. 60. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  61. 61. © 2013 Million Mile Secrets, LLC, All Rights Reserved3) For The Benefits- E.g. American Express Platinum- Lounge Access, $200 Travel Expense Reimbursement4 Reasons to Get a Credit Card
  62. 62. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  63. 63. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Extra Points or Cash Back forSpending in Certain CategoriesWhat are Category Bonuses?
  64. 64. © 2013 Million Mile Secrets, LLC, All Rights Reserved4) For The Category Bonuses-E.g. American Express Premier Rewards Gold3X Points Airfare; 2X Points Gas/ Groceries4 Reasons to Get a Credit Card
  65. 65. © 2013 Million Mile Secrets, LLC, All Rights Reserved- 2X on Travel/Dining on Chase Sapphire Preferred4 Reasons to Get a Credit Card
  66. 66. © 2013 Million Mile Secrets, LLC, All Rights ReservedAre Category Bonuses Worth it?
  67. 67. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Incremental Earning- 3x on airfare. Actually 2 EXTRApoints (or 1 EXTRA point if you haveSapphire)- 2x on groceries. Actually 1 EXTRApoint- 2x on gas. Actually 1 EXTRA pointWorth It or Not?
  68. 68. © 2013 Million Mile Secrets, LLC, All Rights Reserved-Annual Fees- $175 for Premier Rewards Gold- $95 for Chase SapphirePreferred- $95 for Chase Ink BoldWorth It or Not?
  69. 69. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Buy Gift Cards from Grocery Stores/ Gas Station With CategoryBonusesAmazon Gift Cards Restaurant Gift CardsGift Cards at Grocery Stores / Gas Stations
  70. 70. © 2013 Million Mile Secrets, LLC, All Rights ReservedUse Gas Station Gift Cards at Affiliated Grocery Store- E.g Kroger/Kwik TripGift Cards at Grocery Stores / Gas Stations
  71. 71. © 2013 Million Mile Secrets, LLC, All Rights Reserved•2X Travel/Dining•$95 Annual Fee•No Forex Fee•5X Rotating Categories•Gas/Drugstores/Amazon•ZERO Annual FeeAnd/OrChase Ink Bold/Plus/Classic/Cash• 5X Office Supply Stores, Cable, Internet• 2X Hotels & Gas• $95 Annual Fee/ No Annual FeeCategory Bonuses – Simple Solution
  72. 72. © 2013 Million Mile Secrets, LLC, All Rights Reserved• $200 monthly telecom = 5 X $200 = 1,000 Pts (Ink)• $300 travel & dining = 2 X $300 = 600 Pts (SapphirePreferred)• $500 monthly Chase Freedom = 5X $500 = 2,500 PtsSimple Solution - Payoff= 4,100 Points Monthly or 49,200 Annually
  73. 73. © 2013 Million Mile Secrets, LLC, All Rights Reserved• ~2 United domestic coach tickets or $821 Southwest• $615 in travel through Ultimate Rewards portal• 2 Category 6 Hyatt nightsWhat to do with 49,200 points?
  74. 74. © 2013 Million Mile Secrets, LLC, All Rights ReservedBusiness Cards
  75. 75. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Don’t need an established business i.eLLC or incorporated business- Start-Up Businesses- Can Apply as a Sole Proprietor- Use SSN as Tax ID number- Don’t LIE!Business Cards
  76. 76. © 2013 Million Mile Secrets, LLC, All Rights ReservedChase Ink- 50,000 Points after $5,000 in 3Months- 5X on Telecom & Office Supply Stores- No Foreign Transaction Fees
  77. 77. © 2013 Million Mile Secrets, LLC, All Rights ReservedAMEX Business Gold- 50,000 Points after $5,000 in 3Months- 3X on Airfare; 2X on Gas & Shipping- 2.7% Foreign Transaction Fee
  78. 78. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  79. 79. © 2013 Million Mile Secrets, LLC, All Rights ReservedWhat Are Your Goals?Have a Goal!
  80. 80. © 2013 Million Mile Secrets, LLC, All Rights ReservedEurope
  81. 81. © 2013 Million Mile Secrets, LLC, All Rights Reserved- 60,000 Coach & 100,000 Business- Can Book 1-way for 30,000 in Coach &50,000 Miles in Business- Subject to Award SeatsEurope…in 2 cards…in Business Class
  82. 82. © 2013 Million Mile Secrets, LLC, All Rights Reserved- 60,000 Coach & 100,000 BusinessEurope…in 2 cards…in Business Class50,000 Miles Up To 55,000 Miles40,000 Points 50,000 Points
  83. 83. © 2013 Million Mile Secrets, LLC, All Rights ReservedThe US
  84. 84. © 2013 Million Mile Secrets, LLC, All Rights ReservedUS…in 2 cards…50,000 Pointsor $833 in Flights40,000 Points or~$440 in Travel50,000 Pointsor $833 in FlightsCompanionPass
  85. 85. © 2013 Million Mile Secrets, LLC, All Rights ReservedHawaii
  86. 86. © 2013 Million Mile Secrets, LLC, All Rights Reserved- ~45,000 Coach & 80,000 Business- Can Book 1-way for Half Miles- Subject to Award SeatsHawaii…in 2 cards…in Business Class
  87. 87. © 2013 Million Mile Secrets, LLC, All Rights Reserved- ~45,000 Coach & 80,000 BusinessHawaii…in 2 cards…in Business Class50,000 Miles Up To 55,000 Miles40,000 Points 50,000 Points
  88. 88. © 2013 Million Mile Secrets, LLC, All Rights ReservedQuestions?
  89. 89. © 2013 Million Mile Secrets, LLC, All Rights Reservedwww.millionmilesecrets.comEmail: daraius@millionmilesecrets.com

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