chicago seminars 2014 presentation
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Chicago Seminars 2014 PresentationTRANSCRIPT
Maximizing Credit Cards
Chicago Seminars
Presented by:
Brian Kelly
Opening A New Line of Credit
What Makes Up Your FICO Score?
Types of Credit10% New
Credit10%
Length of Credit History
15%Amounts
Owed30%
Payment History
35%
PROS
On-time payment history is your biggest factor of your credit score (35%)
Reduces your debt-to-credit ratio (for a given amount of debt)
Opening A New Line of Credit
Types of Credit10%
New Credit10%
Length of Credit History
15%
Amounts Owed30%
Payment History35%
Credit Line:
$10,000
---------
Balance:
$4,000
Debt to
Credit Ratio:
40%
2nd Credit Line:
$10,000
---------
Balance:
$0
Debt to
Credit Ratio:
Total Credit Line is now $20,000
20%
CONS
Reduces the average length of accounts in your credit history.
Impacts “new credit,” which penalizes you for opening up too many new lines of credit in a short period
Generally expect 2-5 points per inquiry, but only part of your calculation one year
Opening A New Line of Credit
Types of Credit10%
New Credit10%
Length of Credit History
15%
Amounts Owed30%
Payment History35%
Transferable Point Cards
Co-Branded Cards
Fixed Value Cards
3 Main Types of Credit Cards
Transferable Point Programs
AMEX Membership Rewards
Pros:
17 airline partners, 4 hotel partners
Transfer bonuses (Currently 50% bonus for
Starwood, 33% Hilton, 35% Virgin Atlantic
Many transfers post instantaneously
Cons:
6/100 cents per point for transfers to US airlines
Earning portal shut down
No longer able to transfer to anyone, only
authorized users and primary cardholder
Star Alliance: Aeroplan (flexible routing, avoid fuel surcharges); ANA (distance-
based); Singapore Airlines (one-way)
Oneworld: British Airways (distance-based); Iberia (lower fuel surcharges)
SkyTeam: Delta (partner awards on Virgin Australia and Virgin Atlantic); Flying
Blue (save up to 50% on promo awards)
AMEX Membership Rewards Tips
Chase Ultimate RewardsPros:
7 airline partners, 4 hotel partners
No transfer fees
Great customer service
Strong partners
Still transfer to others, Combine
Accounts
Strong sign-up bonuses (70,000 UR’s
for Chase Ink Plus)
Cons:
No transfer bonuses
Limited partners
Chase Ultimate Rewards Tips
Tips:
Recent United and Hyatt devaluation, Singapore for First Class Awards
British Airways for short-haul flights
Hyatt 30,000 points for Cat 7 hotels, to SW for Companion
Marriott Hotel + Air Package (including Southwest for Companion Pass)
Citi Thank You Rewards
Pros:
• Adding More Transfer Partners
• Now 9 airline partners plus Hilton
Cons:
• No US program for transfer partners
• Many have fuel surcharges and foreign
call center
Citi Transfer Partners:
Air France Flying Blue
Cathay Pacific
EVA Air
Etihad
Garuda Indonesia
Malaysia Airlines
Qatar Airways
Singapore Airlines
Thai Airways
Hilton HHonors
Redeem for Singapore Airlines First Class
JFK-Frankfurt for 57,000 KrisFlyer miles plus $260 in taxes/fees
Starwood Preferred Guest
Pros:
Cash & Points
Reward stays count towards elite status
Free transfers to others in your household,
transfer bonus
SPG Moments
Multiple Airline Partners
Alaska, American, US Airways
Cons:
Posting times vary greatly
No shopping portal
Foreign Transaction Fees
Co-Branded Credit CardsPros:
Perks
Free checked bags
Elite Status
Lounge Access
Discounted Awards/Free Nights
Cons:
Generally not transferable
Can’t diversify your points
Many perks are the same as elite perks
Examples:
American Express: Delta and Starwood
Chase: United MileagePlus Explorer and Hyatt Visa
Citi: American AAdvantage cards, Hilton Reserve
What are fixed-value cards?
Who are they best for?
Pros
No award blackouts
Earn elite status when using them
Easy to get 1-2.2% in value back
Cons
Expensive tickets cost a lot of points
Fixed-Value Cards
Fixed Value Cards
Barclaycard Arrival (annual fee)
Earn: 2 miles per $1
Redeem: 2.2% for travel, 1% for statement credits
Capital One Venture
Earn: 2 miles per $1
Redeem: 1 cent per mile
US Bank FlexPerks Travel Rewards Visa
Earn: 1-3 points per dollar
Redeem: 1.33-2 cents per point for airfare
Citi ThankYou Premier
Earn: Bonus categories earn 1-3 points per $1
Redeem: 1.25 cents per point for travel
Perks: Elite Miles and Benefits
Elite Mileage
Many Credit Cards earn EQM’s through
spending
Free Nights
Citi HHonors Reserve, Hyatt Card
Lounge Access
Amex Platinum, Citi Exec AA, United Club,
Delta Reserve, Ritz Carlton
Airline Specific Perks
Priority boarding, free checked bags
Other Perks
Amex Plat- SPG Gold, Global Entry
Spend Your Way To Elite Status!Delta: Earn 15,000 MQMs after spending $30,000, earn 30,000 MQMs after spending
$60,000 with the Delta Reserve Amex
Earn 10,000 MQMs after spending $25,000, earn 20,000 MQMs after spending
$50,000 with the Delta Platinum Amex
American: Earn 10,000 EQM’s after spending $40,000 with the Citi Executive
AAdvantage World Elite Mastercard
US Airways: Earn 10,000 preferred miles after spending $25,000 with the US
Airways MasterCard
Southwest: Every $10,000 in purchases earns 1,500 Tier-Qualifying Points
with the Southwest Airlines Rapid Rewards Premier Credit Card
Can also earn EQM’s with Virgin America and Virgin Atlantic through their co-
branded credit cards
Perks: Category Spending
Travel:
Chase Sapphire Preferred, Barclaycard Arrival
Airfare:
Premier Rewards Gold, Airline co-branded cards
Office Supplies:
Chase Ink Products (don’t overlook this)
Gas:
Premier Rewards Gold, Chase Ink Bold/Plus, AMEX Blue
Cash and Blue Cash Preferred
Dining:
Chase Sapphire/Sapphire Preferred, Citi Forward and
ThankYou Preferred
Quarterly Bonuses:
Chase Freedom, Discover It
Arrival Plus: Earn two points per dollar on all purchases and you can
redeem: 2.2% for travel
Amex EveryDay Card: Earn 1.2 points per $1 with the Amex EveryDay card
if you make 20 or more purchases a month,
Amex EveryDay Preferred Card: Earn 1.5 points per $1 with the Amex
EveryDay Preferred card if you make 30 or more purchases a month
Capital One Venture: Earn 2 miles per $1 spent on every purchase
Cards for Every Day Spending
Business Credit Cards
You don’t need to be a large business to get one
If sole proprietor, use your SSN
Business credit cards don’t sit on your personal score
Greater Spending Ability
Different Bonus Spending Categories
5x on office supplies
More Sign-Up Bonuses!!!
Category Spends
Top Categories
Groceries
Gas
Restaurants/Dining
Office Supplies
Airfare
Hotels
Car Rentals
Groceries American Express Blue Cash Preferred: 6x per $1 at standalone US supermarkets
up to $6,000 in purchases annually.
Hilton Surpass Card from Amex: 6x per $1 at US supermarkets.
Hilton HHonors Amex: 5x per $1 at US supermarkets.
American Express Blue Cash Rewards: 3x per $1 at standalone US supermarkets up to $6,000 in purchases annually.
American Express EveryDay Preferred: 3x per $1 at US supermarkets on up to $6,000 in purchases annually.
Citi Hilton HHonors Visa Signature: 3x per $1 at US supermarkets.
American Express Premier Rewards Gold: 2x per $1 at US supermarkets.
American Express EveryDay: 2x per $1 at US supermarkets on up to $6,000 in purchases annually.
Gas Hilton HHonors Surpass Card from Amex: 6x per $1 at US gas stations.
Hilton HHonors Amex: 5x per $1 at US gas stations.
American Express Blue Cash Preferred: 3x per $1 at standalone US gas stations.
American Express Simply Cash Business: 3x per $1 on standalone US gas stations.
Citi Hilton HHonors Visa Signature: 3x per $1 at US gas stations.
Chase Ink Bold: 2x per $1 up to $50,000 in purchases annually.
Chase Ink Plus: 2x per $1 up to $50,000 in purchases annually.
Chase Ink Cash: 2x per $1 up to $25,000 in purchases annually.
IHG Rewards Club Visa: 2x per $1.
Dining Hilton Surpass Card from Amex: 6x per $1 at US restaurants.
Hilton HHonors Amex: 5x per $1 at US restaurants.
Citi ThankYou Premier: 3x per $1 on dining.
Citi Hilton HHonors Visa Signature: 3x per $1 at US restaurants.
Chase Sapphire Preferred: 2x per $1 at restaurants (3x on First Fridays each month).
Chase Ink Cash: 2x per $1 up to $25,000 in purchases annually.
Chase Hyatt Visa: 2x per $1.
IHG Rewards Club Visa: 2x per $1.
Chase Marriott Rewards Premier Visa: 2x per $1.
When To Cancel a Credit Card? Ask Yourself These Questions:
1) Are the perks/benefits of each card more than the annual fee?
2) Is there a duplicate/substitute card that can get me similar
benefits/perks and a new sign-up bonus?
3) How long have I had the card? Is it worth keeping open to
preserve the history of the account?
1. INK PLUS: 70,000 points after $5,000 spent in 3 months
1. SAPPHIRE PREFERRED: 40,000 points after $3,000 in 3 months + 5,000 points when you add cardholder
2. US AIRWAYS PREMIER: 40,000 miles after first purchase
3. BARCLAYCARD ARRIVAL PLUS: 40,000 miles after $3,000 spent in 3 months
1. SOUTHWEST AIRLINES RAPID REWARDS PREMIER: 50,000 points after $2,000 spent in 3 months
Top 10 Current Deals
6. CITI HILTON HHONORS RESERVE: 2 weekend night certificates after $2,500 spent in 3 months
7. CLUB CARLSON PREMIER REWARDS: 85,000 points after $2,500 spent in 90 days
8. BRITISH AIRWAYS VISA: 50,000 avios after spending $2,000 within 3 months
9. CITI EXEC AADVANTAGE: 50,000 miles after $5,000 spent in 3 months
10. AMERICAN EXPRESS PLATINUM: 40,000 points after $3,000 spent in 3 months
Top 10 Current Deals
Introducing TPG
To Go
About TPG-To-Go: Functionality
TPG Now
Read all of the latest points
and travel news from TPG
Top Deals
A curated list of the 10 best
credit card deals right now,
including the Barclaycard
Arrival+ and US Airways
cards
Up to 30,000 Arrival Points
U p t o
5 0 , 0 0 0
U l t i m a
t e
R e w a r
d
P o i n t s
My Wallet
See all of your spend by
category, card and more
Where’s TPG?
Keep up with TPG’s travels
with comments and photos
About TPG-To-Go: Functionality
Pay With This:
Find out which card to use
from your digital wallet when
you are out shopping. A
personalized algorithm uses
data to drive decision in
order to maximum points
value. It will also manage
due dates, balances and
more!
About TPG-To-Go: Functionality
TPG Tracker:
Stay on top of your favorite programs and card
bonuses. Feature will allow users to select favorite
airline, hotel and travel programs.
Cardholders will receive real-time push notification
alerts when TPG posts news or offers from cards
located in their “My Wallet”
About TPG-To-Go: Functionality
Questions?