Thinking about getting a Chase Sapphire credit card? That’s great!
These cards can offer some really nice perks, especially for travelers. But, like with most things in life, there are a few common missteps people make that can cost them those rewards or even prevent them from getting the card in the first place.
We’re going to look at some of those common Chase Sapphire credit card mistakes so you can avoid them.
Key Takeaways
- Make sure you meet Chase’s credit score requirements and understand how their 5/24 rule works before applying.
- Track your spending carefully to meet welcome bonus requirements and avoid missing out on bonus points.
- Be aware that you generally can’t hold multiple Chase Sapphire cards at once and receive a new cardmember bonus.
- Understand the details of travel credits and point transfers to get the most value from your card’s benefits.
- If you have a limited credit history, focus on building it before applying for premium rewards cards like the Sapphire series.
Understanding Eligibility And Application Pitfalls
Applying for a new credit card, especially one as popular as the Chase Sapphire, can sometimes feel like a maze. You want to make sure you’re setting yourself up for success from the very start. Let’s break down some common hurdles people run into when they first try to get approved.
Meeting Credit Score Requirements
While Chase doesn’t publish a strict minimum credit score for the Sapphire cards, most applicants approved generally have scores in the mid-700s or higher. It’s not just about the score itself, though. Chase also looks at your overall credit history. This means they want to see a pattern of responsible credit use, including how long you’ve had credit, the types of credit you manage, and your payment history. Having a thin credit file, meaning you don’t have much credit history, can sometimes be a reason for denial, even with a good score. It shows you haven’t had many opportunities to demonstrate how you handle credit over time.
Navigating The 5/24 Rule
This is a big one for Chase cards. The bank has an unwritten rule, often called the “5/24 rule.” Simply put, if you’ve opened five or more credit cards from any bank in the past 24 months, Chase will likely deny your application for a Sapphire card. This rule applies to new accounts you’ve opened as the primary cardholder. Some business cards might not count, but generally, it’s a pretty firm guideline. It’s worth checking your credit report or using a credit monitoring service to get an accurate count of your recent card openings before you apply.
Importance Of Unfreezing Credit Reports
If you’re someone who regularly freezes your credit with the major bureaus (Experian, Equifax, TransUnion) for security reasons, you absolutely must remember to unfreeze them before applying for a Chase card. Chase needs to be able to pull your credit report to make a decision. If your report is frozen, they can’t access it, and your application will likely be denied. Anecdotal evidence suggests Chase often pulls from Experian, but it’s best practice to unfreeze your report with all three bureaus just in case. Make sure your credit reports are accessible to Chase before you submit your application.
It’s easy to get caught up in the excitement of a new card, but taking a few minutes to check these eligibility factors beforehand can save you from a denial and a hard inquiry on your credit report.
Maximizing Your Welcome Bonus
Getting a new credit card is exciting, especially when there’s a big welcome bonus attached. For the Chase Sapphire cards, these bonuses can be quite substantial, offering a significant boost to your rewards balance. However, it’s easy to miss out on these valuable points if you’re not careful. Let’s look at how you can make sure you get the most out of your welcome offer.
Accurately Tracking Spending Thresholds
Most welcome bonuses require you to spend a certain amount within the first few months of opening your account. It’s important to know exactly how much you need to spend and by when. For example, a common offer might be 60,000 bonus points after spending $4,000 in the first three months. Always double-check the specific spending requirement and the timeframe for your card’s offer.
Here’s a quick way to keep track:
- Know the Target: Identify the exact dollar amount and the number of days you have to meet it.
- Monitor Your Progress: Use your online account or mobile app to see how much you’ve spent towards the bonus.
- Plan Your Spending: If you’re falling short, consider putting larger, planned purchases on the card, like insurance premiums or upcoming travel.
Remember, the annual fee you pay for the card does not count towards meeting the spending requirement. Also, be mindful that purchases need to post to your account within the specified period, not just be made. So, don’t wait until the last day to make a big purchase, as shipping delays or processing times could cause it to fall outside the bonus window.
Avoiding Non-Qualifying Transactions
Not all spending counts towards earning your welcome bonus. Typically, cash advances, balance transfers, and purchases of cash equivalents (like gift cards or cryptocurrency) are excluded. It’s also worth noting that some third-party payment services might not count certain transactions as qualifying purchases. Always review the card’s terms and conditions to understand what spending is eligible.
Be aware that certain transactions, even if they seem like regular spending, might not count towards your welcome bonus. It’s best to stick to straightforward purchases to avoid any surprises.
Understanding Bonus Eligibility Timelines
Chase has specific rules about who is eligible for new cardmember bonuses. A key rule is that you generally cannot receive a new cardmember bonus if you have received a bonus for that specific card in the past. Furthermore, there are often restrictions if you currently hold or have recently held certain other Chase cards. For instance, you might not be eligible for a new Sapphire bonus if you currently have another Sapphire card open. Always check the offer details for any specific eligibility rules, especially regarding previous bonus earnings or existing card memberships, to ensure you qualify before applying.
Avoiding Common Chase Sapphire Credit Card Mistakes
When you get a Chase Sapphire credit card, like the Preferred or Reserve, it’s easy to get excited about the rewards and perks. But there are a few common pitfalls that can trip you up. Let’s look at some of these Chase Sapphire common pitfalls to help you use your card wisely.
Holding Multiple Sapphire Cards
Chase has updated its rules, and now you can hold both the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve® at the same time. This is a big change from before. However, there’s a catch: If you currently have the Chase Sapphire Preferred, you won’t get the welcome bonus if you apply for the Sapphire Reserve. To get the Sapphire Reserve bonus, you’d need to close or downgrade your Preferred card first. It’s important to check the specific bonus rules before applying to avoid missing out on valuable points.
Missing Out On Limited-Time Offers
Chase often has special welcome bonus offers, sometimes the best ones they’ve had in years. People sometimes wait too long to apply, thinking they have plenty of time. Then, life happens, and the offer ends. If you’re eligible and can meet the spending requirements, it’s best to apply when you see a great offer. Don’t let a fantastic opportunity for bonus points slip away because you delayed.
Miscalculating Previous Bonus Earnings
This is a big one. Chase has rules about how often you can get welcome bonuses on their Sapphire cards. Generally, you can’t get a bonus if you’ve received a bonus on a Sapphire card in the past 48 months. It’s easy to forget when you last earned a bonus, especially if you have multiple Chase cards. Before applying, double-check your past account activity to make sure you’re eligible for the bonus you’re aiming for. This is one of the key Chase Sapphire credit card mistakes to avoid.
Making sure you understand these rules upfront can save you a lot of disappointment later. It’s all about being informed before you click that ‘apply’ button.
Here are some things to keep in mind regarding bonus eligibility and spending:
- Annual Fee: The annual fee itself does not count towards meeting the minimum spending requirement for a welcome bonus.
- Timing: Make sure your purchases post to your account within the specified bonus period. Online orders that ship later might not count if they fall outside the timeframe.
- Transaction Types: Some transactions, like certain peer-to-peer payments (e.g., Venmo), might not qualify as eligible spending for bonus purposes. Always check the card’s terms and conditions for specifics on what counts.
By being aware of these common Chase Sapphire common pitfalls, you can better manage your account and get the most out of your card. This helps in responsible use and avoids potential Chase Sapphire hidden costs or fees associated with misunderstandings.
Strategic Use Of Card Benefits
Leveraging Travel Credits Effectively
Chase Sapphire cards often come with statement credits for travel booked through their portal. While these credits can reduce your out-of-pocket expenses, it’s important to use them wisely. Sometimes, booking through the Chase Travel portal might mean paying more for a flight or hotel than you would elsewhere. You need to compare prices to make sure the credit is actually saving you money. If the portal price is higher, the credit might not be as beneficial as it seems. Always check if the travel credit offers a genuine saving compared to booking directly with the provider.
Understanding Point Transfer Limitations
One of the big draws of the Chase Sapphire cards is the ability to transfer your points to airline and hotel partners. This can be a great way to get more value from your points, especially if you can find sweet spots in partner award charts. However, this process isn’t always straightforward. It requires research to find good transfer ratios and availability. If you’re not someone who enjoys planning travel this way, or if your travel patterns don’t align with partner redemptions, this benefit might not be as useful for you. It’s a powerful tool, but it does take some effort to use effectively.
Evaluating The Annual Fee’s Value
Most Chase Sapphire cards have an annual fee. To make sure the card is worth keeping, you need to assess if the benefits you actually use outweigh this cost. Consider all the perks: travel credits, bonus points on spending, insurance, and any other statement credits. If you travel frequently and utilize the travel portal or transfer partners, the fee might be easily justified. However, if you rarely travel or don’t spend enough in the bonus categories to offset the fee, you might find that a no-annual-fee card or a card with a lower fee could serve you better. It’s about looking at your personal spending habits and travel style to see if the card’s value proposition truly fits.
Building A Strong Credit Foundation
Addressing Insufficient Credit History
Sometimes, even with a good credit score, you might find it hard to get approved for premium travel cards like the Chase Sapphire cards. This can happen if you’re new to credit or if your credit history is thin. Chase, like other issuers, looks at more than just your score; they want to see a pattern of responsible credit use over time. If you’re in this situation, there’s no quick fix, but building your credit history with a couple of other credit accounts in your name can make a big difference for future applications. Think of it as laying the groundwork.
The Role Of Authorized User Accounts
Becoming an authorized user on someone else’s credit card can be a way to start building credit, especially if you don’t have much history yourself. The payment history of the primary cardholder can appear on your credit report. However, it’s important to remember that this isn’t the same as having your own credit account. While it can help, it might not be enough on its own to meet the requirements for a card like the Chase Sapphire Preferred or Reserve. It’s generally better to have your own accounts that you manage directly.
Securing A Sufficient Credit Limit
For certain premium cards, like the Chase Sapphire Reserve, there’s a minimum credit limit requirement. For example, it requires a credit line of at least $10,000. If your income or credit profile doesn’t support such a high limit, you might not be approved. It’s wise to check your credit limit potential before applying. If you’re aiming for a card with a higher credit limit, focus on improving your overall creditworthiness and demonstrating your ability to handle larger credit lines responsibly.
Final Thoughts
So, you’ve learned about some common slip-ups people make with the Chase Sapphire card. It’s easy to get caught up in the excitement of rewards and bonuses, but a little planning goes a long way. Remember to check your credit report status, keep track of your spending for welcome bonuses, and be aware of Chase’s specific rules, like the 5/24 guideline. By avoiding these common issues, you can make sure you’re getting the most out of your card and enjoying all the travel perks it has to offer. Happy travels!
Frequently Asked Questions
What is the Chase 5/24 rule, and how does it affect my application?
The Chase 5/24 rule means that Chase may not approve your application if you have opened five or more credit cards from any bank in the last 24 months. It’s important to check your recent credit activity before applying to ensure you meet this requirement. If you’re unsure, you can contact Chase to confirm your status.
Can I have both the Chase Sapphire Preferred and Chase Sapphire Reserve cards at the same time?
Generally, you can only have one Sapphire card open at a time. If you currently have the Chase Sapphire Reserve, you might not be eligible for the welcome bonus on the Chase Sapphire Preferred. You may need to close or downgrade your existing Sapphire card before applying for a new one to be eligible for the bonus.
How do I make sure I earn my welcome bonus?
To get your welcome bonus, you must spend a certain amount within the first few months of opening your card. Keep track of your spending carefully. Remember that annual fees and certain transactions, like payments through apps like Venmo, may not count towards this spending goal. It’s best to check your progress regularly through your online account.
What if my credit score is good, but I’m still denied for the card?
Even with a good credit score, other factors can affect your approval. Chase also looks at your credit history’s depth. This means they consider how long you’ve had credit and if you’ve managed different types of accounts responsibly. Building a longer credit history can help improve your chances for future applications.
How can I use my travel credits effectively?
The Chase Sapphire Preferred often comes with travel credits, like a statement credit for hotel stays booked through Chase Travel. To get the most value, plan your bookings with these credits in mind. Compare prices to ensure you’re still getting a good deal, even when using the credit.
What should I do if my credit report is frozen when I apply?
If you have a frozen credit report, Chase cannot access it to review your application. Before applying, make sure you unlock your credit reports with all the major credit bureaus (Experian, Equifax, and TransUnion). This simple step ensures Chase can process your application without delays.
Marc Smith is the founder of the Budget Geridibiase blog, where he uses his decade-plus experience as a financial consultant to simplify the world of finance, credit cards, and insurance. His mission is to translate complex topics into practical, accessible advice, empowering readers to make financial decisions with confidence and build a secure economic future.