Maximizing Credit Card Rewards with Miles & Points

© 2013 Million Mile Secrets, LLC, All Rights Reserved
Introduction
to
Miles & Points Credit Cards

Daraius Dubash

- 5 Dangers of Credit Cards
- Credit Scores
- Types of Credit Cards
- Evaluating Credit Cards
- Minimum Spending
- Category Bonuses
- Goals
Agenda

Thanks To Credit Cards!

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

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

1 MILLION+ miles/points in
2011 & 2012

Million Mile Secrets Credit Score

Only 240,000 Miles to the Moon

5 Dangers of Applying for Credit Cards
1. APPLYING FOR LOTS OF CARDS
2. NOT PAYING YOUR BALANCE IN FULL
3. SPENDING MORE
4. YOUR CREDIT SCORE MATTERS
5. BUYING A HOUSE

Can Not pay your balance in FULL each
month
Do NOT Apply If You…

…for LOTS of Cards the First Time
Do NOT Apply …

Have a Low Credit Score

Have a
mortgage in the
next 2 years
Do NOT Apply If You…

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

Will my credit score
go down?

3 Credit Bureaus
FICO Score: 700+

Credit Score

Free Credit Score

Banks Are Smart
- Chase lets you get bonus for
different type of card
- United Explorer vs. Southwest
-AMEX cards 1 year after
cancelling
-Bank of America/Barclays

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

- Flexibility, flexibility, flexibility!
- Sharing points with family/friends
- More Partners = More Options
- Don’t forget about partners of
partners
- Don’t put all of your eggs in one basket
The Case for Transferrable Points

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

- 1:1 transfer partners with Southwest, United, British
Airways, Korean, Hyatt, Marriott, Priority Club and
Amtrak, Virgin Atlantic
- You can combine points with spouse/partner
- No fees when transferring to airlines!
- Points post right after statement closes
- No transfer bonuses
Chase Ultimate Rewards

Transferring to Hyatt

Transferring to United

- 40,000 Points after $3,000 within 3 months
- 2X points on Travel & Dining
- Worth $400 Cash Back, $500 in Travel or
More if Transferred to Hotel/Airline Partners
Chase Sapphire Preferred

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

Starwood Hotel Redemption

1b) 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 Fee
American Express Starwood

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

- Earn 1 point per $1 spent
- Premier Rewards Gold is 3x on airfare and 2x on
gas & groceries
- Points go into pending status for a
month after statement close
Membership Rewards Basics

- Transfer to anyone
- Link (not enroll) their account to your account
membershiprewards.com -> Points Summary ->
Bottom Right
Flexibility

- Recent Bonuses:
Delta: 50% and 25,000 MQMs, 40%, 30%, 20%, 10%
British Airways: 50%, 40%, 35%
Virgin Atlantic: 15%
Starwood: 50%
Transfer Bonuses

4) For The Category Bonuses
-E.g. American Express Premier Rewards Gold
3X Points Airfare; 2X Points Gas/ Groceries
AMEX Premier Rewards Gold

Types of Credit Cards – Airlines

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

Best Deals (Sign-up Bonus):
- Citi American Airlines cards for 50,000 Miles
- 1 Free Bag & Priority Boarding
Earning Miles & Points – Credit Cards

Types of Credit Cards – Hotels

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

Hotel Credit Cards
- Chase Hyatt
- Citi Hilton Reserve
- Club Carlson

Types of Credit Cards – Cash Back

Types of Credit Cards – Cash Back
- 1 to 2% on purchases
- ~5% on categories
- Easy to understand
- Good for coach travel

Cash Back
$5,000 business class ticket = $250,000
spending (2%)
80,000 points on AMEX SPG = 100,000
American Airlines Miles

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

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

- 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 Citi
Reconsideration

- 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 Later
Complete Minimum Spending

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

- Evaluate after 9 to 10 months
- Any benefits for keeping card?
- Ask for retention
- Worth the fee?
Cancelling Credit Cards

How to Evaluate Credit Cards?

Big Sign-Up Bonus!

1) Big Sign-Up Bonus
- E.g. 40,000 Point Chase Sapphire Preferred
- 50,000 Point American Airlines
4 Reasons to Get a Credit Card

2) 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 $1

3) For The Benefits
- E.g. American Express Platinum
- Lounge Access, $200 Travel Expense Reimbursement

- Extra Points or Cash Back for
Spending in Certain Categories
What are Category Bonuses?

4) For The Category Bonuses
-E.g. American Express Premier Rewards Gold
3X Points Airfare; 2X Points Gas/ Groceries

- 2X on Travel/Dining on Chase Sapphire Preferred

Are Category Bonuses Worth it?

- 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?

-Annual Fees
- $175 for Premier Rewards Gold
- $95 for Chase Sapphire
Preferred
- $95 for Chase Ink Bold
Worth It or Not?

- Buy Gift Cards from Grocery Stores/ Gas Station With Category
Bonuses
Amazon Gift Cards Restaurant Gift Cards
Gift Cards at Grocery Stores / Gas Stations

Use Gas Station Gift Cards at Affiliated Grocery Store
- E.g Kroger/Kwik Trip
Gift Cards at Grocery Stores / Gas Stations

•2X Travel/Dining
•$95 Annual Fee
•No Forex Fee
•5X Rotating Categories
•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
Category Bonuses – Simple Solution

• $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
Simple Solution - Payoff
= 4,100 Points Monthly or 49,200 Annually

• ~2 United domestic coach tickets or $821 Southwest
• $615 in travel through Ultimate Rewards portal
• 2 Category 6 Hyatt nights
What to do with 49,200 points?

Business Cards

- Don’t need an established business i.e
LLC or incorporated business
- Start-Up Businesses
- Can Apply as a Sole Proprietor
- Use SSN as Tax ID number
- Don’t LIE!
Business Cards

Chase Ink
- 50,000 Points after $5,000 in 3
Months
- 5X on Telecom & Office Supply Stores
- No Foreign Transaction Fees

AMEX Business Gold
- 50,000 Points after $5,000 in 3
Months
- 3X on Airfare; 2X on Gas & Shipping
- 2.7% Foreign Transaction Fee

What Are Your Goals?
Have a Goal!

Europe

- 60,000 Coach & 100,000 Business
- Can Book 1-way for 30,000 in Coach &
50,000 Miles in Business
- Subject to Award Seats
Europe…in 2 cards…in Business Class

- 60,000 Coach & 100,000 Business
Europe…in 2 cards…in Business Class
50,000 Miles Up To 55,000 Miles
40,000 Points 50,000 Points

The US

US…in 2 cards…
50,000 Points
or $833 in Flights
40,000 Points or
~$440 in Travel
50,000 Points
or $833 in Flights
Companion
Pass

Hawaii

- ~45,000 Coach & 80,000 Business
- Can Book 1-way for Half Miles
- Subject to Award Seats
Hawaii…in 2 cards…in Business Class

- ~45,000 Coach & 80,000 Business
Hawaii…in 2 cards…in Business Class
50,000 Miles Up To 55,000 Miles
40,000 Points 50,000 Points

Questions?

www.millionmilesecrets.com
Email: daraius@millionmilesecrets.com

Maximizing Credit Card Rewards with Miles & Points

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