Introduction to Category Bonuses
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Introduction to Category Bonuses

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Frequent Miler and Million Mile Secrets presentation at 2012 LA FTU.

Frequent Miler and Million Mile Secrets presentation at 2012 LA FTU.

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Introduction to Category Bonuses Introduction to Category Bonuses Presentation Transcript

  • Introduction to Category Bonuses
  • What are Category Bonuses?- Extra Points or Cash Back forSpending in Certain Categories
  • AMEX Premier Rewards Gold- 3X Points Airfare - 2X Points Gas/ Groceries View slide
  • Sapphire Preferred- 2X on Travel/Dining on Chase Sapphire Preferred View slide
  • Worth It or Not?- Displaces spending on sign-up bonuses forother credit cards
  • $50,000*2010 US Census
  • Earning Miles & Points – Credit Cards - Spend everything you earn, you’ll get only 50,000 miles/points - Pay-off is with the SIGN-UP BONUS, NOT everyday spending!
  • Worth It or Not?- Incremental Earning - 3x on airfare. Actually 2 EXTRA points (or 1 EXTRA point if you have Sapphire) - 2x on groceries. Actually 1 EXTRA point - 2x on gas. Actually 1 EXTRA point
  • Worth It or Not?- $750 a month on gas and groceries= 750 extra points per month or 9,000points per year$ 175 Annual Fee - Worth it ornot?
  • Worth It or Not?- Annual Fees - $175 for Premier Rewards Gold - $95 for Chase Sapphire Preferred - $95 for Chase Ink Bold
  • Worth It or Not?- Complex - Time Consuming
  • Worth It or Not?- Keep your partner happy!
  • Worth it!No fee for many of the best 5X and 6X bonuses!• Chase Ink Classic, Ink Cash: 5X• US Bank Cash+ 5X (choose 2)• Chase Freedom, rotating 5X (limited to $6K / year)• Citi Forward 5X• American Express Hilton HHonors: 6X
  • Worth it!Best alternative is sign-up bonus spend. Let’s look at some sign-up offers…
  • Ink Bold / Ink Plus• Current offer: 50K points after $5K spend. • If spend within 1X categories, total 55K points • Earnings: 11X• Prior 50K offer: 25K points free + 25K points after $10K spend • If spend within 1X categories, total 35K additional points • Earnings after free bonus: 3.5X
  • Sapphire Preferred• 40K points after $3K spend • If spend within 1X categories, total 43K points • 14.33X
  • BA 100K offer• 50K Free, 50K more after $20K spend • BA card earns 1.25 points per dollar • Total 75K additional points • Earnings: 3.75X
  • More…• Citi AA: 50K after $2500 spend • Total 5250 points • Earnings: 21X• Amex SPG: 10K free + 15K after $5K spend • Total 20K additional points • Earnings: 4X• CitiBusiness ThankYou: 50K after $6K spend • Total: 56K points • Earnings: 9.33K
  • Worth it!• Sign-up bonus spend ranges from 3.5X to 21X • Better than category bonuses, but not by orders of magnitude• Category bonuses available year around• Ideal: • Meet sign up bonus spend within each card’s bonus categories • E.g. Meet Hilton HHonors min spend at grocery stores, drug stores, and gas stations • Otherwise, meet spend where no good 5X categories exist
  • Worth it!Use tools to make card selection easier(more on this later)
  • Best Category Bonuses 6X 5X groceries,telecom, gas, drug cable, storesinternet, office supply 5X restaurants, bookstores, 2X movies Travel, Dining 5X Select two 5X categories Rotatingcategories
  • Cash+
  • Category Bonuses – Simple Solution•2X Travel/Dining•$95 Annual Fee •5X Rotating Categories•No Forex Fee •Gas/Drugstores/Amazon •ZERO Annual Fee And/Or Chase Ink Bold/Plus/Classic/Cash • 5X Office Supply Stores, Cable, Internet • 2X Hotels & Gas • $95 Annual Fee/ No Annual Fee
  • Simple Solution - Payoff• $200 monthly telecom = 5 X $200 = 1,000 Pts (Ink)• $300 travel & dining = 2 X $300 = 600 Pts (Sapphire Preferred)• $500 monthly Chase Freedom = 5X $500 = 2,500 Pts = 4,100 Points Monthly or 49,200 Annually
  • What to do with 49,200 points?• ~2 United domestic coach tickets or $821 Southwest• $615 in travel through Ultimate Rewards portal• 2 Category 6 Hyatt nights
  • Another Simple Solution 6Xgroceries,gas, drug stores, telecom 5X restaurants, bookstores, movies
  • Simple Solution 2 PayoutHilton Amex: 5400 monthly, 65K annually • $200 monthly telecom = 6 X $200 = 1,200 • $500 monthly groceries= 6 X $500 = 3000 • $150 monthly gas = 6 X $150 = 900 • $50 monthly drug stores = 6 X $50 = 300Citi Forward ThankYou: 1250 monthly, 15K annually • $200 dining = 5 X $200 = 1000 • $50 books & movies = 5 X $50 = 250
  • What to do with 65K Hilton & 15KThankYou points?• Two nights category 5 HiltonAND• $200 airfare
  • Advanced Solution 6X 5X groceries, telecom, gas, drug cable, stores internet,office supply 5X restaurants, bookstores, 2X movies Travel 5X Select two 5X categories Rotating categories
  • Advanced Solution Payout• 60K Hilton HHonors• 50K Ultimate Rewards• 15K ThankYou• $800 cash back
  • What to do with all that?A trip for two:• Two round trip award flights on UnitedPlus• $200 revenue flight or car rental via ThankYou pointsPlus• Two nights HiltonPlus• Cash for dining, excursions, extra hotel nights, etc.
  • Tools to find and use Category Bonuses…
  • Frequent Miler page
  • Best Category Bonuses
  • Wallaby
  • Wallaby iPhone app
  • Tools: Glyph - I-Phone App - Easy to Add Cards - More locations
  • Tools: Glyph Wallet - Tracks Your Rewards
  • Tools: Glyph – Dashboard - Shows You How Much You Lost
  • Tools: Glyph – Guru - Not Accurate all the Time - Doesn’t Explain How “%” is Calculated - Crashes
  • TAKE IT FURTHER
  • Gift Cards at Grocery Stores / Gas StationsUse Gas Station Gift Cards at Affiliated Grocery Store - E.g Kroger/Kwik Trip
  • Gift Cards at Grocery Stores / Gas Stations- Buy Gift Cards from Grocery Stores/ Gas Station With CategoryBonuses Amazon Gift Cards Restaurant Gift Cards
  • Reload cards
  • Questions?
  • Backup slide: Point valuesProgram Card(s) Point Value at Value at Value ~2X ~5X (cents per point)Ultimate Ink, 1 (2) 2 (4) 5 (10)Rewards Freedom, SapphireUS Bank Cash+ 1.875 3.125 6.875ThankYou Forward 1 (1.33) N/A 5 (6.65)Hilton Amex .5 1.5 (at 3X) 3 (at 6X)HHonorsMembership Premier 1.5 3 4.5 (at 3X)Rewards Rewards Gold