Archives for May 2015

Now that you know The Basics of Earning Miles and Points, let me take you down Points Potential Lane.

As I mentioned, we earned most of our miles initially on Delta and it has paid for our major flights on our upcoming trip.

Hey-o Southeast Asia in business/first class…in one month!

Would I purposefully earn miles on Delta now? Probably not. Delta in the last year and a half has turned into a revenue based frequent flier program. For a non-business traveler like me, it doesn’t bode well. I’m a lowly Silver Medallion on their SkyMiles program. While I probably see more complimentary upgrades than most Silver Medallions because my home airport isn’t a huge hub, I’m also not trying (willingly) to spend $2,500 towards earning Silver Medallion status for the next year. I will have enough miles, but I will not have spent enough to maintain my status. So, sadly, we need to spread our wings and fly to more programs. (See what I did there?)

You can read more about Delta Skymiles devaluation and the program turning revenue based here.

That said, we both separately have the Delta Platinum AMEX and will keep it simply for the free companion pass we get each year and checked luggage. It makes the $195 fee worth it. (I don’t know many flights that are cheaper than $195.)

Saying goodbye to Delta actually makes me a bit sad as I love Delta as a brand and I’ve enjoyed my Silver Medallion status. It just doesn’t make fiscal sense if we have other ways of earning free or nearly free flights.

So, if Delta Skymiles aren’t something I’m actively earning on credit cards right now. What would I recommend?

 

My Favorite Credit Cards (thus far)

Remember, I’ve only been in the points game for about a year and a half. These are the programs for earning miles and points that have worked well for me.

Chase Sapphire Preferred (contact me if you want want a referral)

In the points game, this card has been king for awhile. I use this card for my normal spend on everything. Why? The Ultimate Rewards program, where you can transfer and use your points, is pretty fantastic.

• Current Bonus:
  • 40,000 points when you spend $4,000 on purchases in the first three months.
  • 5,000 bonus points when you add an additional cardholder
• Benefits: 2x points on travel and dining, no foreign transaction fees, primary auto rental insurance and the ability to transfer points to 11 transfer partners through the Ultimate Rewards program
• Annual Fee: $95 which is waived the first year.

 

Chase Freedom (contact me if you want want a referral)

Much like the Chase Sapphire Preferred, the Freedom is another great card from Chase and utilizes the same Ultimate Rewards Program. While each purchase on this card earns 1 point, during each quarter, certain purchases earn 5x the points. All you need to do is “register” (hit a button on your account online) before each quarter and boom, you’re earning 5x the points.

Below are the retailers you can earn 5x the points with for this quarter. (Side note: I can’t wait for Christmas and that Amazon 5x bonus. Errrrrbody will be getting gifts through Amazon this year.)

• Current Bonus: 
  • $200 (20,000 points) limited time offer after spending $500 on purchases in your first three months
• Benefits: Get 5% cash back (5x the points) on up to $1,500 spent at featured stores that change each quarter.
• Annual Fee: $0

 

Chase Ink Plus

If you’ve ever received a gift card from me, I’ve bought it using this card. That’s because you can get 5x the points at office supply stores and guess what’s sold there- hey-o, gift cards! Plus, television, internet and cable services all earn 5x the points. Oh and 2x the points at gas stations. Oh AND you can transfer points through, you guessed it, Ultimate Rewards. Yup, this card is great. (This is a business credit card.)

• Current Bonus:
  • 50,000 points after spending $5,000 in the first three months.
• Benefits: Earn 5x the points at office supply stores, cable, cell and internet service. Plus 2x the points at gas stations and also on hotel accommodations. No foreign transaction fees. Ultimate Rewards transfers.
• Annual Fee: $95

 

Starwood American Express (Contact me if you want a referral)

While I haven’t used the points I’ve earned on this card (yet) at the hotels that are part of the Starwood Properties, the beauty of this card is you can transfer points to 30 different partners.

Plus, hello, you can use an Amex at Costco.

Cheers to massive amounts of toilet paper and paper towels.

• Current Bonus: 
  • 25,000 points when you spend $3,000 in purchases within your first three months.
• Benefits: Double points on at Starwood hotels (This includes the Westin and W hotels), plus you can transfer points to more than 30 different partners.
• Annual Fee: $65 is waived the first year.

 

Great Cards for Non-Everyday Spend

Now these are cards I still have and use sometimes, but the beauty of the points game is you can “earn and burn” points quickly, as the professional churners say. Basically, these are great cards for their points and often amazing benefits. Would I use them for everyday spend? Not usually.

Citi AAdvantage Platinum Select MasterCard

I’m just trying to spread more airline points to other programs, so I got this card and met the minimum quickly. When I got this card it was 50,000 miles, as well as 2 lounge passes. My hunch is that may come back later on, which is better than the current offer.

• Current Bonus: 
  • 30,000 miles after you make $1,000 in purchases within first 3 months
• Benefits: Free checked bags, early boarding privileges, 2x the miles on AA purchases and 1x the miles for all other purchases.
• Annual Fee: $95 is waived the first year.

 

UnitedMileage Plus Explorer

Again, this card is simply to earn more miles on other airlines without having to fly. The Star Alliance (which United is a partner) is great for short flights while traveling between countries abroad. I used 10,000 points to fly from Barcelona to Lisbon on TAP airlines last summer.

• Current Bonus: 
  • 30,000 miles after you spend $3,000 in the first 3 months
  • 5,000 miles after you add an authorized user
• Benefits: 2 lounge passes each year you have the card, free checked bag, priority boarding, , 2x the miles on United purchases and no foreign transaction fees. Plus, I think an undervalued benefit is your miles never expire while you have this card.
• Annual Fee: $95 is waived the first year.

 

Citi Hilton HHonors Reserve

I got this for the $100 statement credit initially. I used it when I stayed at a DoubleTree in Lisbon, and it made my final price incredibly cheap per night. Plus, the immediate Gold Status with this card often means free breakfast and free internet. But the real beauty of this is the 2 weekend night certificates that you can use at any hotel in the Hilton portfolio.

Which basically means the hubster and I will be the odd kids out when we stay at some swanky hotel in South Beach this summer.

• Current Bonus:
  • Two weekend night certificates plus a $100 statement credit after spending $2,500 in the first four months.
• Benefits: Earn 10 HHonors points for every dollar spent on hotel stays, 5 points for every dollar spent on airline and car rental purchases and 3 points on every dollar for all other purchases. Automatic Hilton HHonors Gold status. No foreign transaction fees. 
  
• Annual Fee: $95, not waived the first year.

 

IHG Rewards Club Select Credit Card

Quite simply, I got this card so we could stay at a nice(r) hotel on our last stop in Seoul, South Korea. After 2 weeks of traveling, I’m sure we’ll be happy put our feet in a jacuzzi tub and enjoy room service. I paid our rent with this card and in return it paid for our entire stay at the Intercontinental COEX while in Seoul. Beautiful, right?

• Current Bonus:
  • 70,000 points after spending $1000 in the first three months.
• Benefits: Earn 5 points per dollar spent at IHG hotels, 2 points at gas stations, grocery stores and resturants and 1 point on all other purchase. No foreign transaction fees. Platinum Elite Status.  Plus, an annual free night for each year you hold the card. 
  
• Annual Fee: $49 is waived the first year.

 

Does this help at all? I know when I first started in the points game, the information was overwhelming. I’ve tried to break it down into bits that were the most useful information for me when I started.

Next, I’ll show you how once you have any of these cards, you can maximize your miles and points through shopping portals and rewards programs. Meaning, you can double dip with your cards.

That’s peanut butter and chocolate exciting!

Interested in more travel hacking posts?
Start here:
What is Travel Hacking?
The Basics of Earning Miles & Points

Now that you know what Travel Hacking is, let's get into the basics of earning Miles and Points.

 

Managing Credit Cards in the Points Game

A word to the wise:

• If you don't pay off your balance every month, the points game isn't for you. The interest you pay in carrying a balance, far outweighs the benefits of any points or rewards you may earn.
• Typically, you need a credit score higher than 730 to begin the points game. Don't have a good credit score? Follow these tips from my pal, Alexander at ThePointsofLife.com.
• It's a myth that applying for multiple credit cards negatively affects your credit score long-term. While your credit score takes a 2-3 point hit when inquiries are made as you apply for a credit card, your score actually increases more as your debt-to-credit ratio improves with each approved application. (Psst. You want a low debt-to-credit ratio.)
• Many credit card churners recommend only applying for credit cards every 90 days.
• If you are applying for more than one credit card, do it on the same day so there aren't multiple inquiries on your report from the previous 90 days (see above.)
• Do only what you feel comfortable with and how you think you can manage it for you and your family.

 

Meeting the Minimum Spend on Credit Cards

Most credit cards require that you meet a minimum spend in order to get your reward of miles or points. When I'm trying to meet a minimum spend I tend to use that card for everything I normally spend money on. I hit “hold” on my normal points credit cards and use only that particular card I'm trying to meet the minimum spend on until I hit it. You have to be diligent and organized about it.

You'd be surprised at how quickly your normal spend adds up. Think of all the things you pay for that are “major” expenses.

1. Car/Home insurance
2. Health insurance
3. Rent/Mortgage
4. Car Payments
5. Student Loans
6. Gas
7. Utilities

Most of those items can be paid with a credit card and if not, there's usually a service that will allow you to pay with a credit card for a fee. The fees need to financially make sense. If you're spending $40-50 in fees to meet a minimum spend for not a lot of points, it's silly. Again, do what makes you feel comfortable.

Very often, I pay our rent over the course of 2 months and easily meet the minimum spend on credit cards. (I guess there's a benefit to high rent in South Florida?)

Services to pay your bills:

ChargeSmart (I’ve used this)

William Paid (I’ve used this)

RentShare (I’ve used this)

RentMoola

Now some naysayers will proclaim that paying those fees isn't worth it, but I would disagree because a plane ticket that only cost me $40 in fees to meet minimum spend that earn points for a plane ticket, is worth it to me. It may not be to you, and that's okay! Again, this is something churners do to meet minimum spending. I don’t use these services unless I’m trying to meet a minimum spend.

If you’re saving up for a big purchase, do it strategically. For instance, we desperately need a new mattress. I won’t be buying one unless it goes towards meeting the minimum spend on a credit card. I mean, why not? It’s just all about piecing together a good spending strategy so you can travel more!

A note about manufactured spending: I cannot offer advice in this area yet as I haven’t done it. But plenty of travel aficionados do and can offer you advice if that’s something you’re interested in. Basically, you move money around on gift cards or prepaid credit cards and use various online services to meet your minimum spending. It’s not something I’ve dipped my toes into yet — I simply meet minimum spend with our normal spending.

 

Programs You'll Benefit From:

Ideally, you'll have a some low-level points in a few programs and have an idea of which direction you'd like to accumulate more points. If not, never fear, I have some advice. I will go into specific brands and their benefits in my next post, next week.

Airlines

Take a look at your closest airport and see which airline has a hub there. You'll benefit from having lots of choices for flights. Of course, this isn't necessary. Especially if you fly a lot internationally. The hubster and I had most of our points with Delta (because Detroit was a hub and we used to live there) but we now live in Fort Lauderdale. We still manage to nearly always fly Delta. That said, a smarter move may be to put some points towards American, which has a hub in Miami, so course, I have.

Hotels

If you're not a business traveler, hotels can be tough for earning points by stays and while I haven't traveled specifically for work in years (sad face), I still put points towards brands I've liked and used in the past. Do you have a hotel that you're dreaming of staying at or perhaps a family vacation with a great family friendly resort? Put your points towards those brands.

Misc.

I can't claim to know a lot about the “other” category that points may fall in – car rentals, gift cards, cash back. My allegiance is to Avis simply  because my old work account is through them and I have status. In general, gift cards and cash back are a poor use for your points. Why? Because if you use 25,000 points to cash out for $250, you could have easily used those points for a round trip domestic ticket that cost over $250. You picking up what I'm putting down? Don't cash out simply because it's easier— I'm here to help make this second nature.

Like watching your life move in slow motion as your husband goes to use a non-points earning credit card to pay for gas when your Chase Ink gets you 2x the points at gas stations.

Noooooooooooo!

 

Points/Miles Earning Credit Cards in my Arsenal:

• Chase Sapphire Preferred (my favorite — contact me if you want a referral)
• Chase Freedom
• Chase Ink
• IHG Rewards Club Select Credit Card
• UnitedMileage Plus Explorer
• Amex Delta Platinum (contact me if you want a referral)
• Amex Starwood Preferred Guest
• Amex Hilton HHonors Surpass
• Citi Hilton HHonors Reserve
• Citi AAdvantage Platinum Select MasterCard
• Barclays US Airways Premier World (discontinued due to American Airlines merger)

Holy shit, Caroline. That's a lot. Yes, but as anyone in the points game knows, I only keep and use a handful in my wallet regularly. I will close accounts that aren’t useful to us in the future or if their fee isn’t worth the price to keep it. I wish I had known more about this a decade ago. You know, when I applied for credit cards only because they had the cool transparent plastic?

Like I mentioned in my last post, I've really only been doing this since our honeymoon almost a year and a half ago. My guest post pal, Kiki, uses the points strategy too for her and her wife to fly around the world.

You can accumulate points quickly, even enough for your Southeast Asia adventure in July to be nearly paid for:

To Hanoi, Vietnam: Business Class on Korean Airlines: 70,000 miles

To Yangon, Myanmar: Coach on Vietnam Airlines: 22,500 miles

To Seoul, South Korea: Coach on Asiana Airlines:17,500 miles

To Atlanta, Georgia: First Class on Delta: 90,000 miles

Hotel in Hanoi (3 nights): Hilton Garden Inn: 30,000 points

Hotel in Seoul, South Korea (2 nights): Intercontinental COEX: 70,000 points

The rest of the hotels or flights will be paid for (on credit cards to earn 2x the points for travel) because they are so cheap it's not worth it to use points. But obviously, if your end goal is to not spend a dime on an airline ticket or hotel, you can surely do that!

 

Do What's Comfortable for You

It's really easy to get caught up in this points strategy game and apply for everything all at once or feel the need to get that big rewards credit card that was just announced. Don't. Do what's best for you and your family.

As an example, on my last round of applications, I applied for 2 cards. If you follow any of the bloggers I mentioned in my last post, you'll see that they apply for lots all at once. The newest, hottest card out right now is the Citi Prestige. I was really hesitant to apply for the new Citi Prestige because the fee is $450 a year. For most people, it could end up being a great card because you get airline lounge access and a $250 credit towards travel charges. For me, and in our current medical school, not traveling as much as we'd want to situation, it just didn't make sense. So I applied for 2 cards I know we can use in the immediate future: the Amex Hilton HHonors Surpass (we love the Hiltons by the beach here for a quick staycation) and the United MileagePlus Explorer card which prevents our United miles from expiring as long as we hold the card. Plus, we use the points mainly for shorter flights on international carriers.

In my next post, I'll show you which cards I recommend and how you can use them to get the most points for your hard-earned money. Sound good?

Any questions?

 

Interested in more travel hacking posts?
Start here: What is Travel Hacking?