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Chasing a New Credit Card Strategy

June 15, 2015
4 min read
Chasing a New Credit Card Strategy
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For the last week or two I've been seeing and receiving a growing number of emails, posts, and comments about an alleged shift in how Chase is handling credit card approvals for at least some of their products. Now, before I go any further I want to emphasize that I have nothing from Chase stating that there has been any shift - nor would I expect any official word from them about a change in how they may approve credit card applicants as that is outside of the scope of our relationship. So, nothing in this post is to be construed official at all, but I still think the issue is worth mentioning at this point given the growing number of reports and how integral Chase credit card products are to many of our miles and points earning strategies.

The best I can tell there are more reports on Flyertalk (and other locations) about people who otherwise report having good credit getting turned down for Chase credit cards than there have been in the past, especially for the Chase "flagship" Freedom (No longer open to new applicants) , Sapphire Preferred, and Slate products (as opposed to the co-branded cards like the United, Southwest, Hyatt, etc). Many of these reports include being told by Chase that the reason they were turned down is they have opened too many accounts in the last two years...not just with Chase, but with other banks, too. Some are surmising that the "magic number" of new accounts in the last two years to get some of those Chase products is 4 or 5 new cards total from all banks, possibly not including department store cards and potentially business cards. There are some reports that being an authorized user on a card may contribute somewhat to the maximum number of new accounts.

I haven't really seen too many reports of people being surprised with denials for the co-branded Chase cards at this point, and it instead has been limited to the Chase branded products mentioned above. Now, the internet is full of false information, just like it is also full of helpful information. My gut is that there has been a change in the approval formula that is causing new problems for some folks to get approved for some of these products, but credit card application formulas aren't as simple for approvals or denials as X cards in X months and you are 100% out, so I can't tell you any magic limit.

I can tell you that you might want to read through the linked Flyertalk thread and look for trends in the stories, keeping in mind of course that sometimes the story being told isn't always 100% complete or correct. Still, trends can be very useful especially when enough recent reports are shared in one place.

So, what to do if you are in the market for a Chase rewards credit card - especially one like the Sapphire Preferred or Chase Freedom that seem to have more reports of approval issues? First, I wouldn't panic. However, if a potential denial would be a big issue for you then I would consider your own credit profile after reading through some of the online reports with approvals or denials and make a decision you are most comfortable with. This might also be a good time to check your own credit reports - remember you get one free each year from each of the three bureaus via AnnualCreditReport.com.

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If you are newer to the rewards credit card game I would go ahead and make getting the Sapphire Preferred and/or Freedom cards a priority pretty early on to avoid any potential issues with getting them down the road. These are very good rewards credit cards that my family personally has and uses regularly. Truthfully, I would recommend getting those cards early on in your miles and points "career" even without any of the new recent reports, so not much has really changed in that regard. I would also recommend thinking long and hard before cancelling one in case you may have trouble getting it again in the future if this reported shift holds for the long term.

I would guess that banks adjust formulas for how they manage credit approvals with some regularity. Every now and then there may be a change a bank makes that stands out a bit more to those in our community, and this may be one of those times.

Have you had any experience applying for Chase cards in the last few weeks?

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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TPG featured card

Best premium travel card for value
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards

1 - 10X points
10xEarn 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards®.
5xEarn 5x total points on flights through Chase Ultimate Rewards®.
3xEarn 3x points on other travel and dining.
1xEarn 1 point per $1 spent on all other purchases

Intro offer

80,000 bonus points
Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,200 toward travel when you redeem through Chase Ultimate Rewards®

Annual Fee

$550

Recommended Credit

740-850
Excellent
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

If you are looking to take your premium rewards to the highest level, this card is really a no brainer in our eyes. Chase's Ultimate Rewards make points easy to redeem, with a wide range of 10 airline and three hotel transfer partners and a friendly user interface. Despite the high annual fee, Chase is consistently adding new benefits to keep the card competitive in a fierce premium rewards field.

Pros

  • $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year
  • Access to Chase Ultimate Rewards hotel and airline travel partners
  • Unlimited 3x points on the broad category of travel and dining
  • 50% more value when you redeem your points for travel through Chase Ultimate Rewards®
  • Broad definitions for travel and dining bonus categories

Cons

  • Steep $550 annual fee
  • May not make sense for people that don't travel frequently
  • You must spend the $300 travel credit before earning 3x points for travel and dining
  • No automatic hotel elite status
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,200 toward travel when you redeem through Chase Ultimate Rewards®
  • $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
  • Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
  • Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,200 toward travel
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
Best premium travel card for value
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10xEarn 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards®.
5xEarn 5x total points on flights through Chase Ultimate Rewards®.
3xEarn 3x points on other travel and dining.
1xEarn 1 point per $1 spent on all other purchases
  • Intro Offer
    Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,200 toward travel when you redeem through Chase Ultimate Rewards®

    80,000 bonus points
  • Annual Fee

    $550
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    740-850
    Excellent

Why We Chose It

If you are looking to take your premium rewards to the highest level, this card is really a no brainer in our eyes. Chase's Ultimate Rewards make points easy to redeem, with a wide range of 10 airline and three hotel transfer partners and a friendly user interface. Despite the high annual fee, Chase is consistently adding new benefits to keep the card competitive in a fierce premium rewards field.

Pros

  • $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year
  • Access to Chase Ultimate Rewards hotel and airline travel partners
  • Unlimited 3x points on the broad category of travel and dining
  • 50% more value when you redeem your points for travel through Chase Ultimate Rewards®
  • Broad definitions for travel and dining bonus categories

Cons

  • Steep $550 annual fee
  • May not make sense for people that don't travel frequently
  • You must spend the $300 travel credit before earning 3x points for travel and dining
  • No automatic hotel elite status
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,200 toward travel when you redeem through Chase Ultimate Rewards®
  • $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
  • Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
  • Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,200 toward travel
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more