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Ep. 11 - How to fly to Hawaii for free! (or for very cheap)

Hey guys welcome to Aloha Life Now, my name is Danny and I'm Erick

And we are doing a special today and it's about credit card points

Because as you know everybody is gonna have to fly to Hawaii so we want to figure out

What is the best way for you to rack up your points so Erick is an expert and I'm gonna default to him

So we want to help people get to Hawaii and experience everything we show

And things that are great about Hawaii and everyone loves Hawaii right?

But the image is it's expensive and to be honest Danny it's expensive

There's a way to actually get tickets, hotels, and other things for basically free

Free????....Free....and I know there's gonna be the people who are anti credit cards

And everything like that and that's fine it's not for everybody

But for the people who are you know have discipline and won't abuse their credit cards

And can actually pay them off on time then this system would work

you know that's my little disclaimer it's not for everybody and I know

there's a lot of people who are like really against it, Dave Ramsey strategy, everything

But yeah those are for the people who have got into trouble with debt

This is for people who can control debt and can take advantage of it

Because look, banks you pay so much money to them you use the ATM they take your money

You transfer money I tried wiring money today 45 bucks

It's my money, I was trying to transfer to my bank, but anyway

So this is a way to get some of your money back and credit card bonus points are they're free money basically, why not?

So I have a question about that because I see tons of different promotions

Where it's like get points, get cash back, or you get miles so what is the difference?

There's a lot of differences I mean they they call it a lot of different things

Cash back that is the... I mean it's good

That's the one for safe people, okay cuz all you're getting is a percent back on everything you spend

Which is good I like I have cash back rewards as well

Now if you want to get free flights, or free hotel rooms, or those kind of things

The cash back is not going to help, oh okay, that's just to get a little bit of your money back

And eventually once you know you get started into this

Later on, those will be really good and...

But that's the difference of cash back between points, now miles and points

They're kind of the same, miles the image is for flying right? right yeah

Points is just more flexible because it can be used for hotels, flying, and cash back

It's pretty much that everything type of thing is points. All right

Now there's a strategy to this okay because if you're gonna start

yeah there's you you might be lost there's you might be getting mailers

Oh discover this or Hawaiian miles this. 50,000 miles...exactly

Or you go to the bank, if you're in Hawaii, Bank of Hawaii offers you miles as well for getting a Hawaiian Airlines credit card as well

So you get a lot of thrown at you

But if you're gonna do this to the max, to really take advantage of it you have to know the strategy

And today I'm gonna give you a little introduction about it...(Danny) Oh man! Not the full strategy?

It's not for everybody and I don't want to make a general video about it

Because I would have to talk to you individually okay and know your goals

And where you're at and you know what you can handle

This is just to get you started, okay, get you started

The number one thing start with Chase! if you want to do the strategy right

Start with chase, and here's why, Chase has the best point system

They do points, they don't do miles, they do points they're called UR points

That's the name, every point family has their own names, Chase UR

Okay UR points and the reason why they're the best points so most lucrative

But also the hardest to get in, they're the most restrictive ok... (Danny) So you have to have good credit?

Not, not in that sense but they limit you to how many chase cards you can get

Or how many cards in general, Chase has this weird rule it's the 5/24 rule

You cannot have more than 5 credit cards in the last two years

And it doesn't matter if they're Chase. Any credit card that means Macy's, Costco, anything, cash back

Doesn't matter what card you got, but that's why they're really restricted

That rule just it's like a slap in the face to people who want the points

Because they do have the best points and they're getting more and more restrictive

So you know when I got in, I got at a really good time, I have amassed

I think I have about 450,000 UR points...(Danny) 450,000 points???

(Danny) I don't even know how much one point is but 450,000 of anything....

It's a lot... it's a lot and it's cuz I got it in the beginning when they had the higher bonuses

And I could actually double dip on some but that, that's something else

But to give you an idea I just booked in January three nights

At one of the top hotels in Lima Peru in Miraflores for my sister's wedding

And I checked on hotels.com and Expedia and things like that, it was going for $1,000 a night

My whole three days cost me 50,000 UR points

So you can... the equivalent if you'd want to cash back

10,000 points is $100 okay that's the equivalent right

So 100,000 points would be $1,000, right... right

So that's the equivalent, but that's why we don't want to take cash back

Because if you use it for hotels and flights they expand immensely

I couldn't even get one night at that hotel, not even, it was a $1,000 a night at that hotel

But it gave me three nights because I went through their portal and they had they sometimes have specials and things like that

So your points go beyond that

And that's why UR points are so valuable because you can find amazing deals

Not only for hotels, but flights to through their portal

Now back to Chase, the credit card, so 5/24 you got to remember that rule

So you got to know what cards you open in the last two years because that blocks you

Okay, five cards, within two years, okay 24 months

So let's just say I have I open a Costco card last year, I only have four slots left okay

Okay now I get my first Chase card, I only have three cards left

That I can get with Chase, and you're thinking oh that's still a lot right right

Chase has the best credit cards on top of everything I'm talk about having the

best point the best everything they have the best co-branded credit cards

(Danny) Again, we are not sponsored by Chase

This is just the strategy so for example Chase has its own cards like they have the freedom,

preferred, reserved, ink preferred, all these these are these are the chase ones

okay and they give you UR points alright and so these are the ones we

want to start with, but then, they have a lot of co branded cards, like Southwest

Hilton, not hilton, I'm sorry... Hyatt... Marriott, United so it's a long list

Avios the British Airways even Disney they have a co branded Disney card

Never get that one, but because it limits your cards okay so you there's a

Strategy that goes into this okay, start with the UR points, but now

How do we come to Hawaii right, so I'm only gonna do Chase because you can tell

This is a lot of information, yes, yeah, now the great thing about UR points

They transfer to many different partners so they're flexible right you can go

Through the Chase portal or you can transfer it one one one point one point

To a different partner and they partner with everybody like all the hotels, a lot

a lot of airlines and here's the trick to come to Hawaii

So for example Delta, yeah if you have Delta points they fly to Hawaii from the west coast

Actually from anywhere in the U.S. right and it'll cost you about 45,000 miles

To come here round trip maybe more okay

But Korean Air, this is the big thing, Korean Air doesn't fly here

But they partner with Delta so if you buy ticket or use your points through Korean you get on

a Delta flight but it's half the price. Same airline ,same seat

It's just going through a different way, okay so you're going through Korean airline

And they give you they have just better point system and this is the great thing

about Chase the UR points transfer 1 to 1 to Korean Airlines

Right, no currency exchange, just 1 to 1, right

so depending on the time of the year but most of the time you can find a

round-trip ticket to Hawaii for 25,000 points (Danny) How much would that be in dollars?, $250, if you hit the cash back

All right so that's nothing, to give you an example why it's nothing

one Chase card bonus sign up bonus is 50,000 points so there's two tickets

Two round-trip tickets just right there one signup bonus so that's one strategy to

get a cheap flight over here all right even if you wanted luxury business class

I think is only forty-five or fifty thousand Korean points roundtrip so for

that one bonus you could get a business class trip round-trip ticket to Hawaii

and back alright and then the other points you have could be used for a

hotel or whatever that's the thing okay so that's one way, UR points Korean Airlines

To fly to Hawaii for really cheap it's it's the best deal there's

other ways but you'll be using more points Korean air right now I think is

number one for the cheapest way to get to Hawaii

okay now the biggest news in the point world are in the credit card world yes

Southwest has just announced, yes, that they are gonna fly to Hawaii, that is HUGE

HUGE HUGE HUGE and if anybody who flies Southwest knows that they have a great

system okay they'll refund your canceled flights you can change dates you can do

it's super flexible how much they charge for like one cup of water I don't know

I'm just trying to give you the fly over here yeah now the the places that

they fly have expanded every year and now you can go to you know people think

all Southwest just for mainland only right and it used to be like that and

just a major hubs but now they actually flied with Caribbean, Central America, and

now Hawaii and that's like the hugest thing ever because Southwest airlines

is the only airline that has this wonderful magical little thing called

companion pass, okay so a companion pass this this will change your whole life

(Danny) okay I'm ready! (Erick) And you can come to Hawaii all the time this is the big thing or a certain amount of flights to

Companion pass, you need a certain amount of points or certain amount of flights to achieve a companion pass

It lasts two years okay two years from the time you got it

It depends on when you got it but it's two years, okay, that's insane amount of time

Let's say I got the companion pass and I put Danny as my companion

Any flight I take with Southwest doesn't matter if I bought the flight

The ticket with points or with miles or with money, Danny gets to fly for free

(Danny) what what??? (Erick) I buy one ticket the second ticket whoever your companion is

Is free, so basically I can tell Danny hey pay half of this... you know you can get two tickets for the price of one, basically

It has to be the same flight?

That's the only catch, if I fly and Danny wants to come that's good

But if Danny flies I he can't fly by himself it has to be together, okay

I can fly by myself that's fine, I mean Danny could fly by himself too

But if you want to use the companion pass it has to be together at the same flight same time

That's so great for couples, for married for dating couples, best friends and it's just insane

There's limits to it

You can change your companion (Danny) yeah, I don't like you anymore, I'm changing my companion

But you can only do it three or four, four times maybe three times a year or four times a year

So it's limited but that's still a lot if you think about it

Yeah, I'll put my spouse for most of the time and then oh she can't come to this big trip but I'll put

My best friend and then after that big trip I'll put my spouse right back on

So it's flexible that's also and that's per year so you can change it the next year

Because you have this for two years remembered alright so this is the most

Magical amazing thing ever right and it's not just with paid tickets

I have all these freaking points I could buy my ticket with points and then Danny flies for free

Or my companion flies for free and then maybe I can charge him some money right, to get that back

It's better than paying full price

And that's amazing and they're gonna start from 2018 so why not

get the companion pass starting January 2018 because that'll last you two years

So now here's the danger part of it if I got my companion passed today

It's November yeah that means it would only be good till the end of this year and net year

Oh yeah so why would I do that right if I got in December

I'd only get a year basically so you want to start the new year (Danny) so do you have to signup for the companion pass?

No, there' two ways to get it

So yeah let me tell you that's this is the big thing right

How to get the companion pass you can fly I think it's 200 flights with

Southwest Airlines so you'd have to fly like twice a week I don't know like you

know you need a ton of flights right of course we're not going to do that

That's not practical unless you're doing a business trip or something like that all the time

The other way a 110,000 points

If you reach a 110,000 points or miles Southwest miles

(Noise) bing, bing, bing.

You achieved your companion pass. Okay now what counts for that?

Of course flights the miles that you accrued with your flights right, shopping portal, they have a portal that

you can shop, but the main thing is the credit card okay when you use that credit card

All those miles go towards that right. But what have I been talking about?

I don't I don't like I don't like no no I don't like waiting

I mean to charge, you'd have to spend a ton of money to make up 110,000 points

Yeah right yeah so the best way is the bonuses, the signup bonuses

Okay so right now, I believe it's 50,000

This is the great thing Southwest has three credit cards

Three credit cards with chase and they all have bonuses

You can get two of them, you can get the regular personal one and a business or the

regular and another regular okay and I believe right now there are 50,000

50,000 so with two credit cards two of those chase Southwest credit cards

You have a 100,000 points right there

No sweat off your back anything right Wow you have to make up the next 10

Okay and that's a lot easier than110, yeah and then

Of course when as soon as you reach 110 you activate your companion pass put your

Companion boom you're ready to fly! Guess what all those points that you just got

All those 110, you get to keep them, you're not trading in 110 for that

Companion pass, you get your companion pass, Plus now you still have

110,000 Southwest points or miles, take a trip, with your companion right yeah so

It's a great system, now I'm making it sound easy I mean it for me it's pretty easy

But this is the thing that you have to remember to reach bonuses

They require a spending amount, a minimum spending amount (Danny) Like $5,000 in 3 months....exactly

It's always in three months right, I believe Southwest is pretty easy I think it's $2,500

Or $3,000 in three months that's

That's really simple and there's ways to do it without spending your money that you

need to spend this is another technique I won't get into today yeah cuz I mean

for me like I would get like four credit cards with bonuses

think of make a strategy make a plan to spend to meet the minimum spending

Requirement okay so let's say you have a big bill that you have to pay okay boom

It's time to to get it so that it could be anything it could be like a school is

Health insurance, your telephone I mean your cell phone, your internet, cable all that

Your groceries, everything put it on there so

Another technique to meet the minimum spending is to add your spouse or your

the person you're dating or your best friend as an authorized user on your

credit card someone you trust right because everything they'll get their own

card and everything they charge is going to your account right so they could help

you pay it but at least now you have two people paying off are paying towards

that minimum spending of the $2500 in three months

or $3,000 in three months right so you need at least a thousand each

month which you know you can do and it's just with your regular spending I mean I

spend all that all the time right so make a plan basically and then make sure

that you're if you want the Southwest companion pass, make sure that you can

get it, you're not over that 5/24 rule okay because it's chased so it falls

into that rule so if you've already had four cards maybe you only be able to get

one Southwest card okay now there's also ways around this because business cards

don't count so that's another thing but just make sure so we would have to go

over how many cards you'd have in the last two years

There's Credit Karma great free app and website it'll actually tell you what

you've open in the last two years so that's a really easy way and it'll tell

you your credit score of course it's not the real credit score but it you know

it gives you an idea, yeah it gives you an idea yeah it's not gonna pull your credit

of course, um so going back to your authorized users on your

card do they count likes for instance my wife and my son are authorized users

that's a good question, they won't count against your, so let's say you have three

Three cards right yeah, but under your card

it's not gonna be three blocked out of your five, it's gonna count one against theirs

okay so they're gonna have one card against theirs but it's really easy so

let's say like you you started and you got your cards for five chase cards or

your three chase cards or the companion pass right and let's say now your wife

wants to try to do points too and she wants to open a slot you can just take

her off as a authorized user and It will free up a spot for her again

so authorized user does it doesn't really count as I like you got a credit card

It does while you have it, but as soon as you take it off it falls off

It only counts again her, it won't count against you at all okay, whereas let's say you

have a card and you're like I really want to be under the 5/24 I want to

be under five I can cancel my old card that I had, my Costco card that I got last year

It doesn't work, (Danny) also, it's not really good to cancel (Erick) You should not cancel, (Danny) it can affect your credit.

Credit is based on history okay so especially you do not want to

ever close your oldest card because that's giving you a lot of history

credit history, rule of thumb, never close a free card if you have a free

card you're not paying a yearly fee don't close it or you can if you've got

a yearly, just change within the same company you can switch to a free card. you can product change, not all of them let you product change , but you you can

So for example the Southwest has an annual fee on each card I think it's $95

on one of them and $65 on the other, completely worth it

That's a yearly fee, think about it you have a pass where you're gonna get a free

ticket at every time way worth it, way worth it, yeah and in the future if you

don't want it anymore and you don't want to pay that yearly fee that you can cancel

okay as long as it's not your old it wouldn't be your oldest card if

you're just opening it now right so you can try to product changes to a free

card too but I don't know if Southwest does product change but you can try

never hurts to try

Man, we've gone almost a half an hour, and if people are still watching that's because they are dedicated

And you know we definitely do a part 2 to this

yeah because we haven't even hit hotels I mean the same kind of idea same thing with hotels you can do the same

system same strategy you just have to know which cards to do it and this is

general advice so if you if you're interested in this put in the comment

put in the comment I want a message from you or I want help, comment...hashtag I want help....hashtag I want help Erick (Laughing)

Just put it in the comment and then I can see the comments and all private message you

And then we can talk and see where you're at and then

I'll give you my advice because it's really hard to generalize this advice but I

just wanted to make a structure and give you an idea of that there is a way to

come to Hawaii and enjoy paradise for free basically

Erick, is just being humble, please, if you are going to ask him for advice, please respect his time

He of course would be happy to accept donations (Laughing) but thank you for watching you know if you have any questions

Put it in the comment you know tag your friends do anything

We're trying to build Aloha life try to help people yeah enjoy the beauty of paradise here

And have a good one man yeah Aloha.