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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Chase Hyatt Visa - Changes


Open123 wrote:

FrugalRican wrote:

Good point, guess I never gave BCP much thought since I already have the BCE.


Likewise, unless meeting spend requirements, the BCE is my designated supermarket card.  Since it's no fee, I use it for only the 3%, and nothing else.

 

When venturing to the grocers, I never leave home without it.



It's my designated supermarket card, except, not for this quarter :smileyhappy:
Freedom has it on its 5%, plus, bring on the Checking combo. But any other quarter, BCE is where it's at for me. I can't justify the BCP. I spend less than $25 per week on groceries.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
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Re: Chase Hyatt Visa - Changes

[ Edited ]

FrugalRican wrote:

Open123 wrote:

FrugalRican wrote:

Good point, guess I never gave BCP much thought since I already have the BCE.


Likewise, unless meeting spend requirements, the BCE is my designated supermarket card.  Since it's no fee, I use it for only the 3%, and nothing else.

 

When venturing to the grocers, I never leave home without it.



It's my designated supermarket card, except, not for this quarter :smileyhappy:
Freedom has it on its 5%, plus, bring on the Checking combo. But any other quarter, BCE is where it's at for me. I can't justify the BCP. I spend less than $25 per week on groceries.


Right!  

 

For me, it'll be Discover at supermarkets (I spend about $100/month) for the 5% in May, though I'd much rather have the 5% in Freedom's UR points with the combo.  Chase is pulling out all the stops on client acquisition.  You have to admire and be impressed what they've put together, which makes them so much more attractive relative to other issuers right now. Until now, I never thought I'd ever open up another checking, but Chase has gotten me to do it.

 

They're so aggressive, they even compete agains their own Hyatt card.

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
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Re: Chase Hyatt Visa - Changes

On another topic, I wonder if that aggressiveness translates into their JPM products like palladium? People have been getting approved with scores and profiles far less than might be expected. Is this related to their aggressive strategy overall or is that specifically due to the palladium card's perks vs cost issue?
FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Chase Hyatt Visa - Changes


CreditScholar wrote:
On another topic, I wonder if that aggressiveness translates into their JPM products like palladium? People have been getting approved with scores and profiles far less than might be expected. Is this related to their aggressive strategy overall or is that specifically due to the palladium card's perks vs cost issue?


The talk I read most on the series of tubes that Al Gore invented is that the Palladium is trying to draw out the high profile card carriers that once were attracted to Centurion and Platinum. The fee is ridiculously low for what the requirements are asking for. I think Palladium will get a lot more aggressive in the next year or so... I think Chase is really trying to go out there and take a huge chunk out of AMEX's market, and from what I can read so far... it seems to be working. Palladium is still on the unknown list. It's not something the general public knows about, and for obvious reasons.

 

For those who have the Palladium, the perks definitely outweigh the costs. The fee is ridiculous when compared to the potential that card could easily have, and most likely, will have. I think it will have more perks pretty soon and it needs to do so, if it wants to draw more people towards it.

 

Whether it's the Freedom, CSP, the Palladium or the Hyatt VISA... Chase REALLY seems to be wanting to push their products. (I also see a lot of this with some of their travel cards lately too).

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
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Re: Chase Hyatt Visa - Changes

[ Edited ]

CreditScholar wrote:
On another topic, I wonder if that aggressiveness translates into their JPM products like palladium? People have been getting approved with scores and profiles far less than might be expected. Is this related to their aggressive strategy overall or is that specifically due to the palladium card's perks vs cost issue?

I recall a time when a person had to have a private banking relationship with Chase (Min 5 or 10 Million usd?) before being considered for the card.  My guess is that the Palladium's cost didn't make it more attractive than Amex's Platinum.  While I think the Palladium was created to compete with the Centurion, it lacked the perks which defined the Platinum/Centurion lines.

 

In my view, I think they'll make an effort to add some features to the card.  Ultimately, I wouldn't be surprised if this card is geared towards the class right below Centurion and above Platinum.  I think currently Chase and everyone else has relaxed approval criteria (especially given the tight credit and purge of the last couple of years) hoping to acquire a customer base of larger than average spenders.  Once this phase is over, I suspect Chase, Amex, and everyone else will reign in the sign up bonuses, and tighten the approval criteria.

 

Clearly, we're in the era of easy credit, relative to the past several years, as denoted by the unprecedented sign up bonuses.  Next year, I suspect the approval criteria will be much more rigid than it is now, especially after Amex and Chase have gone through a period of client acquisition.  Then, they'll monitor and purge or AA the "higher" risk users they've mass approved once they have an idea of a new cardmember's spending pattern and overall financial profile.

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Chase Hyatt Visa - Changes


Open123 wrote:

CreditScholar wrote:
On another topic, I wonder if that aggressiveness translates into their JPM products like palladium? People have been getting approved with scores and profiles far less than might be expected. Is this related to their aggressive strategy overall or is that specifically due to the palladium card's perks vs cost issue?

I recall a time when a person had to have a private banking relationship with Chase (Min 5 Million usd?)


 

When it first came out... it was 30 Million... YIKES.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
0

Re: Chase Hyatt Visa - Changes

[ Edited ]

FrugalRican wrote:

Open123 wrote:

CreditScholar wrote:
On another topic, I wonder if that aggressiveness translates into their JPM products like palladium? People have been getting approved with scores and profiles far less than might be expected. Is this related to their aggressive strategy overall or is that specifically due to the palladium card's perks vs cost issue?

I recall a time when a person had to have a private banking relationship with Chase (Min 5 Million usd?)


 

When it first came out... it was 30 Million... YIKES.


Ok, maybe that's why so few people have the card?  LOL

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Chase Hyatt Visa - Changes

Yep, that's why they drastically reduced the requirement on funds with the private banking. It got REALLY lax after a month or two.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
0

Re: Chase Hyatt Visa - Changes


Open123 wrote:

CreditScholar wrote:
On another topic, I wonder if that aggressiveness translates into their JPM products like palladium? People have been getting approved with scores and profiles far less than might be expected. Is this related to their aggressive strategy overall or is that specifically due to the palladium card's perks vs cost issue?

I recall a time when a person had to have a private banking relationship with Chase (Min 5 or 10 Million usd?) before being considered for the card.  My guess is that the Palladium's cost didn't make it more attractive than Amex's Platinum.  While I think the Palladium was created to compete with the Centurion, it lacked the perks which defined the Platinum/Centurion lines.

 

In my view, I think they'll make an effort to add some features to the card.  Ultimately, I wouldn't be surprised if this card is geared towards the class right below Centurion and above Platinum.  I think currently Chase and everyone else has relaxed approval criteria (especially given the tight credit and purge of the last couple of years) hoping to acquire a customer base of larger than average spenders.  Once this phase is over, I suspect Chase, Amex, and everyone else will reign in the sign up bonuses, and tighten the approval criteria.

 

Clearly, we're in the era of easy credit, relative to the past several years, as denoted by the unprecedented sign up bonuses.  Next year, I suspect the approval criteria will be much more rigid than it is now, especially after Amex and Chase have gone through a period of client acquisition.  Then, they'll monitor and purge or AA the "higher" risk users they've mass approved once they have an idea of a new cardmember's spending pattern and overall financial profile.


How would you define the typical profile of someone between centurion and platinum in terms of income, annual spend, etc? Once they raise the bar (and I agree that they will in the medium term), what would they be looking for (other than high FICOs will automatically be assumed)?
FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
0

Re: Chase Hyatt Visa - Changes


CreditScholar wrote:How would you define the typical profile of someone between centurion and platinum in terms of income, annual spend, etc? Once they raise the bar (and I agree that they will in the medium term), what would they be looking for (other than high FICOs will automatically be assumed)?

I've heard the analogy that "centurion has become the new platinum" many times in recent years.  

 

From what I've seen, there is a considerable gap between a Centurion and Platinum holder today.  The former spends at least $100k per year, and most had spent $250k to be invited in the first place, while the latter (these days) is easier to acquire than even their entry level revolver.  All things being equal, a Centurion holder will have some of the highest credit scores, annual income of at least low to mid 6 figures, a net worth of at least well into the millions, and must be an upstanding business owner or professional in the community.

 

Over the years, many of have downgraded from the Platinum to Green after retirement.  Unless one's travelling frequently, there is little reason to pay the high Platinum fee.  Amex has noticed a significant reduction in not only the Platinum fees received, but the decrease in this groups spending, which has been quite high historically. The beauty of the Platinum card has always been those who pay the fee, but never use the benefits allowing those few who truly use the beneft to maximize the value of the fee--this is the singular beauty and value of the Platinum card.  I'd say roughly 80 - 85% of the people who pay the Platinum fee hardly ever use the benefits which allows Amex to transfer this value to the few who do use them.

 

This works wonderfully well.  However, with the amount of people now cancelling their Platinum cards, Amex has no choice but to reduce the criteria hoping to take in enough fees to continue offering the superior benefits (int'l and domestic travellers) to the 10% who use the card.  Most Platinum holders have the card only for the benefits, and hardly charge on it.  For instance, most of our business charges will go on the new blue card which confers a 30% MR bonus after year 3, but we'll hold the Platinum for all the travel benefits which they've become known.

 

I sense that many who travel less frequently, but have the Platinum for the prestige have soured on it's image since in recent years Amex has relaxed the approval criteria significantly to drive up the fee revenue which is vital to maintain the superior benefits, since spending revenue is very low on this card.  I'm not making judgements here, but there are those who will find the card less prestigious when they realize their waiter (not to diminish the service professions here, but for a lack of a better example) has a Platinum too with a $2,000 hard limit.  Once this veil of exclusivity is pierced, those Platinum holders who don't utilize the benefits (which is the overwhelming majority) will refuse to pay the $450 seeking a card with a higher prestige.  

 

I think this is where Chase has a golden opportunity with the Palladium card.  These users who will invariably purge their Platinum cards have not done so if only because they don't qualify or are not invited for the Centurion.  If the Palladium can offer some more features with a higher approval requirement (say, min income of at least $100k and min 750 Fico), I think they'll take a signficiant share of the current Platinum card holders who have the card mainly for prestige, but think they will, but have never used the benefits.

 

What do you think?  In all the years, Chase has been the first issuer I've seen to seriously pose a challenge to Amex.


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