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Miles & Points Credit Cards

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

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


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  • 1. © 2013 Million Mile Secrets, LLC, All Rights ReservedIntroductiontoMiles & Points Credit Cards
  • 2. © 2013 Million Mile Secrets, LLC, All Rights ReservedDaraius Dubash
  • 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedThanks To Credit Cards!
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Credit Cards- Debit Cards- Shopping- Dining- Banking/Investing- Promotions- Asking nicely!- Partners- FlyingEarning Miles & Points
  • 7. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 8. © 2013 Million Mile Secrets, LLC, All Rights Reserved1 MILLION+ miles/points in2011 & 2012
  • 9. © 2013 Million Mile Secrets, LLC, All Rights ReservedMillion Mile Secrets Credit Score
  • 10. © 2013 Million Mile Secrets, LLC, All Rights ReservedOnly 240,000 Miles to the Moon
  • 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedCan Not pay your balance in FULL eachmonthDo NOT Apply If You…
  • 13. © 2013 Million Mile Secrets, LLC, All Rights Reserved…for LOTS of Cards the First TimeDo NOT Apply …
  • 14. © 2013 Million Mile Secrets, LLC, All Rights ReservedHave a Low Credit Score
  • 15. © 2013 Million Mile Secrets, LLC, All Rights ReservedHave amortgage in thenext 2 yearsDo NOT Apply If You…
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 18. © 2013 Million Mile Secrets, LLC, All Rights ReservedWill my credit scorego down?
  • 19. © 2013 Million Mile Secrets, LLC, All Rights Reserved3 Credit BureausFICO Score: 700+
  • 20. © 2013 Million Mile Secrets, LLC, All Rights ReservedCredit Score
  • 21. © 2013 Million Mile Secrets, LLC, All Rights ReservedFree Credit Score
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved1) Transferable Points2) Airline/Hotel Cards3) Cash Back3 Types of Credit Cards
  • 24. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved1a) Chase Ultimate RewardsTypes of Credit Cards -Transferable
  • 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedTransferring to Hyatt
  • 29. © 2013 Million Mile Secrets, LLC, All Rights ReservedTransferring to United
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved1b) American Express Starwood (SPG)Types of Credit Cards - Transferable
  • 32. © 2013 Million Mile Secrets, LLC, All Rights ReservedStarwood Hotel Redemption
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved1c) American Express Membership RewardsTypes of Credit Cards - Transferable
  • 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. © 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. © 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. © 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedTypes of Credit Cards – Airlines
  • 40. © 2013 Million Mile Secrets, LLC, All Rights ReservedPerks :- Free bags- Priority boarding- Less miles for redemptionsTypes of Credit Cards – Airlines
  • 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedTypes of Credit Cards – Hotels
  • 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedHotel Credit Cards- Chase Hyatt- Citi Hilton Reserve- Club Carlson
  • 45. © 2013 Million Mile Secrets, LLC, All Rights ReservedTypes of Credit Cards – Cash Back
  • 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. © 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedHow Many Cards?Do what you’re comfortable withOR
  • 49. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Not approved online- Max out available credit or toomany inquiriesReconsideration
  • 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. © 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. © 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. © 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedHow to Evaluate Credit Cards?
  • 55. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 56. © 2013 Million Mile Secrets, LLC, All Rights ReservedBig Sign-Up Bonus!
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 63. © 2013 Million Mile Secrets, LLC, All Rights Reserved- Extra Points or Cash Back forSpending in Certain CategoriesWhat are Category Bonuses?
  • 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved- 2X on Travel/Dining on Chase Sapphire Preferred4 Reasons to Get a Credit Card
  • 66. © 2013 Million Mile Secrets, LLC, All Rights ReservedAre Category Bonuses Worth it?
  • 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. © 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. © 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. © 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. © 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. © 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. © 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedBusiness Cards
  • 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. © 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. © 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. © 2013 Million Mile Secrets, LLC, All Rights Reserved
  • 79. © 2013 Million Mile Secrets, LLC, All Rights ReservedWhat Are Your Goals?Have a Goal!
  • 80. © 2013 Million Mile Secrets, LLC, All Rights ReservedEurope
  • 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. © 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedThe US
  • 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedHawaii
  • 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. © 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. © 2013 Million Mile Secrets, LLC, All Rights ReservedQuestions?
  • 89. © 2013 Million Mile Secrets, LLC, All Rights Reservedwww.millionmilesecrets.comEmail: daraius@millionmilesecrets.com