chicago seminars presentation 2014

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 His-tory35%

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 His-tory35%

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 BlueCathay PacificEVA AirEtihadGaruda IndonesiaMalaysia AirlinesQatar AirwaysSingapore AirlinesThai AirwaysHilton 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 CardsBarclaycard 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 SpendsTop 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

2. SAPPHIRE PREFERRED: 40,000 points after $3,000 in 3 months + 5,000 points when you add cardholder

3. US AIRWAYS PREMIER: 40,000 miles after first purchase

4. BARCLAYCARD ARRIVAL PLUS: 40,000 miles after $3,000 spent in 3 months

5. 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?