Gary Leff and Daraius Dubash presentation at 2012 LA FTU.

1. How the Banks Want You to
Travel the World for Free!
Gary Leff – View From The Wing
Daraius Dubash - Million Mile Secrets

2. Thank You Chase!

3. Thank You Banks!

4. How many have rewards credit
cards?
How many?
How many miles did you earn with
them last year?

5. Earning Miles & Points
- Credit Cards
- Debit Cards
- Shopping
- Dining
- Banking/Investing
- Promotions
- Asking nicely!
- Partners
- Flying

6. Credit card sign-up bonuses are the
EASIEST way to earn hundreds of
thousands of points.

7. 1 MILLION+ miles/points in
2011 from 16 credit cards!

8. 1 MILLION+ miles/points in
2011 from 16 credit cards!

9. Million Mile Secrets Credit Score

10. Only 240,000 Miles to the Moon

11. Do NOT Apply for Credit Cards If You…
Have a
mortgage in the
next 2 years

12. Do NOT Apply for Credit Cards If You…
Can Not pay your balance in
FULL each month

13. Earning Miles & Points – Credit Cards
- How it works
- Sign-up for card and get sign-on bonus (25K to 100K)
- Usually have to spend a minimum amount, e.g $3,000
in 3 months
- Then what?

14. What is the
average household
income in the US?

15. $50,000*
*2010 US Census

16. 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

17. Earning Miles & Points – Credit Cards
- Churning is key!
- Get same card again (YMMV):

18. How to Evaluate Credit Cards?

19. 3 Reasons to Get a Credit Card
1) Big Sign-up Bonus
- E.g. 100,000 Point British Airways
- 50,000 Point Southwest

20. 3 Reasons to Get a Credit Card
2) Most Rewarding for Actual Spending
- E.g. American Express Starwood earns 1.25 miles
- E.g United Club Card earns 1.5 miles

21. 3 Reasons to Get a Credit Card
3) For The Benefits
-E.g. American Express Platinum

22. Spending
Spending on Cards with no/low NET cash outflow
- Amazon Payments $1,000 per month free

23. Spending
Spending on Cards with no/low NET cash outflow
- Vanilla Reloads & Bluebird

24. Spending
Spending on Cards with no/low NET cash outflow
- William Paid for Rent
- Charge Smart for loans
Pre-Paid Cards
- Wells Fargo
- US Bank Visa Buxx

26. Will my credit score go down?

27. 3 Credit Bureaus
FICO Score: 700+

28. Credit Score

29. Earning Miles & Points – Credit Score
- Will my score go down?
- 3 credit bureaus
- Credit score: credit history, types of credit, payment,
utilization, inquiries
- 2 to 5 points decrease per application
- But available credit increase, so credit score may
increase
- Monitor your credit score (Credit Karma/Sesame)
- Do what you’re comfortable with

30. Free Credit Score

31. App-O-Rama (Example)
Every 3 to 4+ Months

32. App-O-Rama Planning
- Different Credit Bureaus
- Business + Personal
- Plan for Minimum Spending
- Call reconsideration to get approved
- 3 to 4+ months

33. Business Cards
- Don’t need an established business
- Selling stuff on ebay etc.
- Use SSN as Tax ID number

34. How Many Cards?
Do what you’re comfortable with
OR

35. Reconsideration
- Not approved online
- Max out available credit or too many inquiries
- 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!

36. Earning Miles & Points – Retention
- Retention
- Citi great at offering incentive to keep card
- I’m “thinking” of cancelling card
- Annual Fee
- Benefits

37. Earning Miles & Points – Credit Cards
Best Deals (Sign-up Bonus):
- 2 Citi AAdvantage cards for 50,000 miles each
- Use 2-browser trick
- 100,000 miles = Business Class to Europe/South America

38. Earning Miles & Points – Credit Cards
Best Deals (Sign-up Bonus):
- 2 Chase Southwest cards for 50,000 points each
- 100,000 out of 110,000 points needed for Companion Pass
-Chase United Explorer
- 55,000 miles after $1,000 within 3 months + $50 credit

39. Earning Miles & Points – Credit Cards
Best Deals (Sign-up Bonus & Spending):
-Chase Sapphire Preferred
- 40,000 sign-up bonus, 2X points on dining/travel, no forex
fees, TRANSFERABLE to United, Hyatt, British Airways,
Southwest etc.
-Chase Freedom
- 10,000 sign up bonus, but 5X points on certain categories
(gas, groceries, etc.). Points transferable to hotels/airlines if you
have Chase Sapphire Preferred.
- Chase Ink Bold
- AMEX Starwood Preferred

40. 3 Types of Credit Cards
1) Transferable Points
2) Airline/Hotel Cards
3) Cash Back

41. The Case for Transferrable Points
• Flexibility, flexibility, flexibility!
• Sharing points with family/friends
• Transfer partners = options
• Don’t forget about partners of
partners
• Don’t put all of your eggs in one basket

42. Types of Credit Cards -Transferable
1a) Chase Ultimate Rewards

43. Chase Ultimate Rewards
 1:1 transfer partners with Continental, United, British
Airways, Korean, Hyatt, Marriott, Priority Club and
Amtrak
 You can combine points with anyone else
 No fees when transferring to airlines!
 You can transfer to anyone else
 Points post right after statement closes
 No transfer bonuses (yet)

44. Chase Ultimate Rewards
Current offers:
Sapphire Preferred: 40,000 after $3,000 spend
within 3 months. $95 annual fee waived the first
year.
Ink Bold: 50,000 after $5,000 in 3 months. $95
annual fee waived the first year.

45. Types of Credit Cards - Transferable
1b) American Express Starwood (SPG)

46. Types of Credit Cards - Transferable
1c) American Express Membership Rewards

47. Membership Rewards Basics
• Earn 1 point per dollar spent (Premier
Rewards is 3x on airfare and 2x on gas &
groceries)
• Points go into pending status for a
month after statement close (can be
expedited)

48. Flexibility
• Transfer to anyone!
• Link (not enroll!) their account to your account
membershiprewards.com -> Points Summary ->
Bottom right
• Advance points for free, just earn them back
• Up to 60,000 for Platinum
• 15,000 for most other cards (not corporate)
• Buy points at 2.5 cents each, up to 500,000 a
year!

49. Transfer Bonuses
Recent bonus opportunities
Delta: 50% and 25,000 MQMs, 40%, 30%, 20%, 10%
British Airways: 50%, 40%
Virgin Atlantic: 15%
El Al: 25%
Iberia: 20%
Aeromexico: 25%
Starwood: 50%

50. Current Sign-up Offers
 Mercedes Benz Platinum- 50,000. $495 annual fee
 Platinum- 25,000. $450 annual fee
 Premier Rewards Gold- 25,000 Pts. $175 annual fee
waived first year
 Bumping bonuses debacle
 Look out for targeted offers!

51. Types of Credit Cards – Airline
Perks :
- Free bags
- Priority boarding
- Less miles for redemptions

52. Earning Miles & Points – Credit Cards
Best Deals (Sign-up Bonus):
- 2 Citi AAdvantage cards for 50,000 miles each
- Use 2-browser trick
- 100,000 miles = Business Class to Europe/South America

53. Types of Credit Cards –Hotel
Could be worth paying fee for:
- Free night certificates
- Elite Status
- Discounted award redemptions

54. Types of Credit Cards – Cash Back
- 1 to 2% on purchases
- ~5% on categories
- Easy to understand
- Good for coach travel
- $5,000 business class ticket = $250,000 spending
- $80,000 spending on AMEX SPG = 100,000 AA Miles