Last year, I wrote an article about saving money with credit cards. I know that some of the leading financial gurus in the US, most notably Dave Ramsey, want every credit card that has ever been created to be cut up into very tiny little pieces. They then want the very tiny little pieces of what used to be credit cards burned in a giant bonfire so that no one can ever use one again for any purpose at any time. I tend to disagree, because I can get some pretty cool benefits if I score some big signup bonuses and pay of my cards on a monthly basis so that I’m paying nothing in interest payments.
Already this year, I’ve been on a couple of pretty cool international trips. I had a week-long jaunt across the pond for Spring Break, visiting Madrid and Paris along the way. While I spent some money on this trip, I literally saved thousands on what the retail cost would have been because points and miles paid for my flights and hotels. Just a couple of months later, I found a killer sale on Southwest flights to Puerto Vallarta from the major airport that’s nearest my home. A round-trip ticket was slightly more than 5,600 Rapid Rewards miles apiece. I found a really, really nice Marriott resort for $97/night and pulled the trigger. I would not have been able to take these trips without the frequent flyer miles and hotel points that I’d accrued over the past couple of years.
When I started reading about the rumors over the past month or so that Chase Bank was going to have a super-duper premium credit card that earned Ultimate Rewards points, my interest was definitely piqued. The rumor was that for a $450 annual fee, cardholders could earn 100,000 Ultimate Rewards points after spending $4,000 (above the annual fee) within three months. Additionally, users would get a $300 credit on travel expenses each calendar year. The card was supposed to come out in August, so my thought was that I could get two $300 credits for one $450 annual fee. This would, in effect, mean that I could actually GET PAID $150 to get the card, in addition to the massive sign-up bonus that could come very close to getting my family a one-way saver trip to Europe or Asia all by itself.
Were the rumors too good to be true? It turns out that they were not. The benefits of the card were just as impressive as advertised. However, there was concern that the infamous 5/24 rule would be in effect for the card. This unwritten and unofficial secret squirrel rule means that if you’ve opened 5 cards from any bank over the past 24 months, Chase will most likely deny your application for many of their best travel cards, although, as with most rules, there appear to be some exceptions. I read several of my favorite travel blogs to get an idea of whether to expect this possibility. I thought that I had only opened four in the past 24 months regardless. However, I forgot that I’d held a card as an authorized user. Unfortunately, these count against the 5/24 rule that Chase won’t even confirm exists. Another problem was that the blogs indicated that many people who had opened more than 5 cards were getting denied, although there were some spotty approvals for people who had opened more cards, sometimes many more cards.
Regardless of my fears, I decided to pull the trigger when the application link became available this week. I applied on the first day that I could have gotten a Sapphire Reserve, hoping to score the massive 100,000 point bonus with lots of Ultimate Rewards points added to my account. I love these points, because I can transfer them to airlines like United and Southwest (I’ve used them both for reward trips over the past couple of years). I can also transfer them to hotel loyalty programs like IHG (best known for the Holiday Inn chain), Marriott, and Hyatt. I once scored three nights at a Hyatt House about 10 minutes from Disneyland for only 8,000 points a night after using another Southwest sale to fly to LAX.
Anyhoo, to make a long story short, after I hit the submit button, I got the dreaded “We have to review your application and we’ll get back to you in 7-10 days” message that usually indicates that an applicant is going to get a big thumbs down on his or her attempt to score a card. I decided to call the reconsideration line, and my concerns were well-founded. Too many cards opened in the last 24 months was the verdict. One of my cards should fall of the list in October. At that point, if the bonus stays high enough, I might just attempt it again.
Did you attempt to get the Chase Sapphire Preferred card? How did it work out?