Chicago Seminars 2014 Presentation

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)


Types of Credit10%

New Credit10%


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


Types of Credit10%

New Credit10%


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


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!


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”


Questions?