CSP questions from new owner!
Jul 22, 2014, 3:45 pm
#1
Original Poster
Join Date: Jul 2010
Posts: 2,108
CSP questions from new owner!
I'm a relatively new emmigrant to the United States (left Canada 2.5 years ago, married, obtained permanent res status and green card) and as such, I have zero credit history in the States. I've been using a crappy BoA debit Visa for all purchases and transactions for the past couple of years; what a waste!
My wife and I are travelling through Japan for 5 weeks end of October through December. We each tried to apply for a CSP card respectively and were declined for various reasons: my wife is in good credit standing but has insane student loan debts that she's paying off from grad school at UC Berkeley and I was technically approved for the card with limitations; one of which requiring me to deposit 50k into a Chase savings acct, which I was reluctant to do.
As such, my in-laws, being the wonderfuly kind-hearted people that they are, applied for the Chase Sapphire Preferred card for our benefit, and will be adding me an authorized user. Bonus points! I have a couple of questions regarding the card and policies.
First and foremost, as an authorized user, will I be receiving a card with my own name on it?
We are pre-paying our entire trip through a travel agency in foreign currency (JPY) as we've contracted a third party to arrange all hotel accommodations for us due to language barriers as well as special and otherwise difficult to obtain requests.
I've read the following on Chase's website concerning bonus points for the 3k-in-3-months spending offer for authorized users:
5,000 Bonus Points After Adding Authorized User in the first 3 months
"This new cardmember bonus offer is not available to either (i) current cardmembers of this consumer credit card, or (ii) previous cardmembers of this consumer credit card who received a new cardmember bonus for this consumer credit card within the last 24 months. To qualify for and receive your bonus, your First Purchase and addition of an authorized user to your account must both occur during the first 3 months from account opening. (“First Purchase” does not include balance transfers, cash advances, cash-like charges such as travelers checks, foreign currency, and money orders, any checks that access your account, overdraft advances, interest, unauthorized or fraudulent charges, or fees of any kind, including an annual fee, if applicable.) After qualifying, please allow 6 to 8 weeks for bonus points to post to your account. To be eligible for this bonus offer, account must be open and not in default at the time of fulfillment."
I've bolded out the bit of text that was concerning.
Am I to understand that the 5k bonus is not applicable to any purchases made in foreign currency? In other words, if I put a 20k travel charge onto the card within the first month, it's not considered redeemable for points if the equivalent of that ammount is charged directly to a travel agency in Japanese Yen?
I also wonder how I will be able to spend points as an authorized user. Will they be directly transferable to any loyalty programs in my name at full value, or would they only be transferrable to accounts associated with, or in the name of, the primary card holder? It would not be big issue eitherway as we'd still be able to use the card upon return for booking travel; meaning even if points were not transferrable, I would use them to purchase flights or book hotels directly in our names, however it would be far more convenient if I could transfer them between my participating accounts.
I think those are the only questions that I have for now... anything else that I might need to know or would be useful for our purposes with this new card?
I was stressing about the upcoming trip for months since we weren't sure how we were going to actually pay for it (not in terms of affording but actually transacting payment) so this is such a huge relief and I'm very excited about it! The upcoming trip is a nearly one and a half year belated honeymoon and with the ammount of spending and generous rewards, this card should afford us a fully paid trip to just about anywhere of our chosing upon return! ^
My wife and I are travelling through Japan for 5 weeks end of October through December. We each tried to apply for a CSP card respectively and were declined for various reasons: my wife is in good credit standing but has insane student loan debts that she's paying off from grad school at UC Berkeley and I was technically approved for the card with limitations; one of which requiring me to deposit 50k into a Chase savings acct, which I was reluctant to do.
As such, my in-laws, being the wonderfuly kind-hearted people that they are, applied for the Chase Sapphire Preferred card for our benefit, and will be adding me an authorized user. Bonus points! I have a couple of questions regarding the card and policies.
First and foremost, as an authorized user, will I be receiving a card with my own name on it?
We are pre-paying our entire trip through a travel agency in foreign currency (JPY) as we've contracted a third party to arrange all hotel accommodations for us due to language barriers as well as special and otherwise difficult to obtain requests.
I've read the following on Chase's website concerning bonus points for the 3k-in-3-months spending offer for authorized users:
5,000 Bonus Points After Adding Authorized User in the first 3 months
"This new cardmember bonus offer is not available to either (i) current cardmembers of this consumer credit card, or (ii) previous cardmembers of this consumer credit card who received a new cardmember bonus for this consumer credit card within the last 24 months. To qualify for and receive your bonus, your First Purchase and addition of an authorized user to your account must both occur during the first 3 months from account opening. (“First Purchase” does not include balance transfers, cash advances, cash-like charges such as travelers checks, foreign currency, and money orders, any checks that access your account, overdraft advances, interest, unauthorized or fraudulent charges, or fees of any kind, including an annual fee, if applicable.) After qualifying, please allow 6 to 8 weeks for bonus points to post to your account. To be eligible for this bonus offer, account must be open and not in default at the time of fulfillment."
I've bolded out the bit of text that was concerning.
Am I to understand that the 5k bonus is not applicable to any purchases made in foreign currency? In other words, if I put a 20k travel charge onto the card within the first month, it's not considered redeemable for points if the equivalent of that ammount is charged directly to a travel agency in Japanese Yen?
I also wonder how I will be able to spend points as an authorized user. Will they be directly transferable to any loyalty programs in my name at full value, or would they only be transferrable to accounts associated with, or in the name of, the primary card holder? It would not be big issue eitherway as we'd still be able to use the card upon return for booking travel; meaning even if points were not transferrable, I would use them to purchase flights or book hotels directly in our names, however it would be far more convenient if I could transfer them between my participating accounts.
I think those are the only questions that I have for now... anything else that I might need to know or would be useful for our purposes with this new card?
I was stressing about the upcoming trip for months since we weren't sure how we were going to actually pay for it (not in terms of affording but actually transacting payment) so this is such a huge relief and I'm very excited about it! The upcoming trip is a nearly one and a half year belated honeymoon and with the ammount of spending and generous rewards, this card should afford us a fully paid trip to just about anywhere of our chosing upon return! ^
Jul 22, 2014, 3:59 pm
#2
Join Date: Feb 2013
Location: NYC
Programs: UA 1K, AA EP, Hyatt Diamond, SPG Platinum, M life Noir
Posts: 1,279
You may want to consider applying for the Chase Freedom first, then CSP 6-12 months later after you've built up a positive history. The Freedom is easier to qualify for.
Yes, but as you probably know, your in-laws will be legally liable for any charges. You have some very trusting in-laws.
No. You are making a purchase, not ordering foreign currency. You're fine.
Technically, the latter. However, in practice, I've been able to transfer my points from UR to loyalty programs associated with other people's names. Just beware that you are technically breaking the rules if you do so and could be at risk for AA.
We are pre-paying our entire trip through a travel agency in foreign currency (JPY) as we've contracted a third party to arrange all hotel accommodations for us due to language barriers as well as special and otherwise difficult to obtain requests.
I've bolded out the bit of text that was concerning.
Am I to understand that the 5k bonus is not applicable to any purchases made in foreign currency?
I've bolded out the bit of text that was concerning.
Am I to understand that the 5k bonus is not applicable to any purchases made in foreign currency?
Technically, the latter. However, in practice, I've been able to transfer my points from UR to loyalty programs associated with other people's names. Just beware that you are technically breaking the rules if you do so and could be at risk for AA.
Jul 22, 2014, 4:13 pm
#3
Join Date: Mar 2010
Posts: 205
It appears bribro beat me to the punch as I would reply just as s/he did. If you're worried about the points, I'm sure that your in-laws would be fine with you accessing the points and booking whatever travel you had in mind for those points.
I would be curious to know if Chase was offering you a secured card for $50,000 in deposit with it being restricted or if you had to deposit that amount in order to show that you have some kind of bank to support the risk. You are wise not to hold that much in Chase for a credit card as their interest rates on checking, savings, CD's and the like are fairly abysmal. I have a checking account with them in order to maximize some of my cards with them and it pays .01% which is pathetic even for a free account.
However, if the money is not restricted, there's no harm in moving it around in order to get your feet wet as timely spending/paying cycles will generate revenue for Chase and that is their primary focus. Expanding your credit history here should be one of your top financial priorities because it sounds like your wife may be burdened with debt for years to come.
I would be curious to know if Chase was offering you a secured card for $50,000 in deposit with it being restricted or if you had to deposit that amount in order to show that you have some kind of bank to support the risk. You are wise not to hold that much in Chase for a credit card as their interest rates on checking, savings, CD's and the like are fairly abysmal. I have a checking account with them in order to maximize some of my cards with them and it pays .01% which is pathetic even for a free account.
However, if the money is not restricted, there's no harm in moving it around in order to get your feet wet as timely spending/paying cycles will generate revenue for Chase and that is their primary focus. Expanding your credit history here should be one of your top financial priorities because it sounds like your wife may be burdened with debt for years to come.
Jul 22, 2014, 4:47 pm
#4
Original Poster
Join Date: Jul 2010
Posts: 2,108
Thanks to both of you for the input as well as clearing things up for me!
What Chase initially offered me was not a secured card (I suggested it in fact, but was told that service was no longer available) but a plain old Checking + Savings with their crummy APY to show that I had sufficient assetts, I suppose. I opened both Checking and Savings accounts and initially transfered 30k to Chase while the CSP application was pending, as I was told by the representative at my local branch that he would be able to speak with the credit department and get it approved. That didn't happen and the number jumped to 50k, at which point, I thanked them and declined. I've since transfered the majority of the deposit out of Chase and back into Ally, leaving only the required funds necessary for the $400 promotion that was being offered at the time of opening the accounts. Once the 6-month time limit is capped off and the bonus is permanent, I plan to transfer the rest of the funds out of Chase and bank to Ally or into a local SF credit union. I was playing around with an APY calculator on the Ally website, and was quite amused to learn that the initial 30k I had transfered to Chase would have earned me a whopping $3 by year's end, whereas that same ammount would have earned $262 and change in an Ally Savings.
Last question regarding the new card... do they all come standard with chips nowadays or does one still need to request to receive this? Irecall reading some posts on FT in the past about users encountering compatability issues with their Chase Sapphire Preferred Cards at certain locations while travelling; Japan being one destination with many such reports. Apparently this has occurred even in high-end restaurants, so I want to be certain we're well equipped with the new card.
Thanks again!
What Chase initially offered me was not a secured card (I suggested it in fact, but was told that service was no longer available) but a plain old Checking + Savings with their crummy APY to show that I had sufficient assetts, I suppose. I opened both Checking and Savings accounts and initially transfered 30k to Chase while the CSP application was pending, as I was told by the representative at my local branch that he would be able to speak with the credit department and get it approved. That didn't happen and the number jumped to 50k, at which point, I thanked them and declined. I've since transfered the majority of the deposit out of Chase and back into Ally, leaving only the required funds necessary for the $400 promotion that was being offered at the time of opening the accounts. Once the 6-month time limit is capped off and the bonus is permanent, I plan to transfer the rest of the funds out of Chase and bank to Ally or into a local SF credit union. I was playing around with an APY calculator on the Ally website, and was quite amused to learn that the initial 30k I had transfered to Chase would have earned me a whopping $3 by year's end, whereas that same ammount would have earned $262 and change in an Ally Savings.
Last question regarding the new card... do they all come standard with chips nowadays or does one still need to request to receive this? Irecall reading some posts on FT in the past about users encountering compatability issues with their Chase Sapphire Preferred Cards at certain locations while travelling; Japan being one destination with many such reports. Apparently this has occurred even in high-end restaurants, so I want to be certain we're well equipped with the new card.
Thanks again!
Last edited by OliverB; Jul 22, 2014 at 4:52 pm
Jul 22, 2014, 4:57 pm
#5
Join Date: Feb 2013
Location: NYC
Programs: UA 1K, AA EP, Hyatt Diamond, SPG Platinum, M life Noir
Posts: 1,279
Jul 22, 2014, 5:02 pm
#8
Join Date: Feb 2013
Location: NYC
Programs: UA 1K, AA EP, Hyatt Diamond, SPG Platinum, M life Noir
Posts: 1,279
You then transfer those UR points to CSP, which allows you to transfer to travel partners like United, British Airways, Hyatt, etc. You cannot transfer UR points from your Freedom card directly to UR travel partners, the UR points must come from CSP or another "premium" UR card (Ink Plus, Ink Bold, JPM Select, JPM Palladium).
Try applying for the Freedom. It would have helped if you kept your money in the Chase account though.
Jul 22, 2014, 5:14 pm
#9
Original Poster
Join Date: Jul 2010
Posts: 2,108
The Freedom card earns 5x on rotating quarterly bonus categories (the bonus categories are gas stations and Kohl's for Q3 2014). You are limited to $1,500 per quarter though, so if you only used the Freedom card for 5x category spend and maxed out the $1,500 limit each quarter, you'd get 30k in UR points per year.
You then transfer those UR points to CSP, which allows you to transfer to travel partners like United, British Airways, Hyatt, etc. You cannot transfer UR points from your Freedom card directly to UR travel partners, the UR points must come from CSP or another "premium" UR card (Ink Plus, Ink Bold, JPM Select, JPM Palladium).
I was thinking the same thing. I don't think I'll bother right away as I'd prefer to use the CSP for the next few months to build credit. I may reconsider down the road, although I'd still prefer to apply for the CSP when the time comes.
Jul 22, 2014, 6:21 pm
#10
Original Poster
Join Date: Jul 2010
Posts: 2,108
I just thought of another question while reviewing the Chase SP 'benefits' thread at the top of the forum. I appears as though primary insurance will now be covered for car rentals but I wonder how that works with regards to authorized users? Would the primary insurance coverage only be linked to the primary card holder?
Jul 22, 2014, 6:53 pm
#11
Original Poster
Join Date: Jul 2010
Posts: 2,108
Annnnnd one more that popped into my head:
Is there any way to use UR points against hotel stays at non-afilliated properties through afilliated sites? For instance, I generally shy away from the big chains when travelling, with the exception of maybe Starwoods. I prefer smaller boutique properties so Hyatts are o-u-t. We have an upcoming trip planned to New Orleans and I was wondering if it's possible to somehow use UR points towards independant hotels like (in this example) The Soniat House? Am I able to 1) book at mom and pop inns, independantly owned boutique hotels, etc. entirely on UR points and 2) get decent value with point redemption through any afilliated hotel booking site? I tend to rack up rewards points quickly and the biggest travel expenditure is always lodging, so this would be the ultimate use of the Sapphire Preferred UR for me, if it's possible.
Is there any way to use UR points against hotel stays at non-afilliated properties through afilliated sites? For instance, I generally shy away from the big chains when travelling, with the exception of maybe Starwoods. I prefer smaller boutique properties so Hyatts are o-u-t. We have an upcoming trip planned to New Orleans and I was wondering if it's possible to somehow use UR points towards independant hotels like (in this example) The Soniat House? Am I able to 1) book at mom and pop inns, independantly owned boutique hotels, etc. entirely on UR points and 2) get decent value with point redemption through any afilliated hotel booking site? I tend to rack up rewards points quickly and the biggest travel expenditure is always lodging, so this would be the ultimate use of the Sapphire Preferred UR for me, if it's possible.
Jul 22, 2014, 6:57 pm
#12
Join Date: Apr 2008
Location: LAN
Posts: 172
Thanks, I didn't realize it caps out at $1,500 per quarter, which makes it slightly less desirable. I can think of at least one restaurant on our upcoming trip that would top us off right away. To be clear, is that limit placed on each respective category (ie. gas, groceries, restaurants) or is that the total sum that would be applicable through all categories of purchases? As we don't own a car and rarely purchase gas unless traveling, the main incentive would be restaurants and groceries. Both of which would far exceed that quarterly limit, making the CSP more convenient for all general spending.
Jul 22, 2014, 8:18 pm
#13
Join Date: Feb 2013
Location: NYC
Programs: UA 1K, AA EP, Hyatt Diamond, SPG Platinum, M life Noir
Posts: 1,279
Using an AU card will do very, very little to build your personal credit. I would recommend applying for the Freedom card sooner rather than latter to get started.
Jul 22, 2014, 8:20 pm
#14
Join Date: Feb 2013
Location: NYC
Programs: UA 1K, AA EP, Hyatt Diamond, SPG Platinum, M life Noir
Posts: 1,279
I just thought of another question while reviewing the Chase SP 'benefits' thread at the top of the forum. I appears as though primary insurance will now be covered for car rentals but I wonder how that works with regards to authorized users? Would the primary insurance coverage only be linked to the primary card holder?
Jul 22, 2014, 8:22 pm
#15
Join Date: Feb 2013
Location: NYC
Programs: UA 1K, AA EP, Hyatt Diamond, SPG Platinum, M life Noir
Posts: 1,279
Annnnnd one more that popped into my head:
Is there any way to use UR points against hotel stays at non-afilliated properties through afilliated sites? For instance, I generally shy away from the big chains when travelling, with the exception of maybe Starwoods. I prefer smaller boutique properties so Hyatts are o-u-t. We have an upcoming trip planned to New Orleans and I was wondering if it's possible to somehow use UR points towards independant hotels like (in this example) The Soniat House? Am I able to 1) book at mom and pop inns, independantly owned boutique hotels, etc. entirely on UR points and 2) get decent value with point redemption through any afilliated hotel booking site? I tend to rack up rewards points quickly and the biggest travel expenditure is always lodging, so this would be the ultimate use of the Sapphire Preferred UR for me, if it's possible.
Is there any way to use UR points against hotel stays at non-afilliated properties through afilliated sites? For instance, I generally shy away from the big chains when travelling, with the exception of maybe Starwoods. I prefer smaller boutique properties so Hyatts are o-u-t. We have an upcoming trip planned to New Orleans and I was wondering if it's possible to somehow use UR points towards independant hotels like (in this example) The Soniat House? Am I able to 1) book at mom and pop inns, independantly owned boutique hotels, etc. entirely on UR points and 2) get decent value with point redemption through any afilliated hotel booking site? I tend to rack up rewards points quickly and the biggest travel expenditure is always lodging, so this would be the ultimate use of the Sapphire Preferred UR for me, if it's possible.