topic Re: CSP Chances? in Credit Card Applications

CSP Chances?

Anonymous — Thu, 16 May 2019 03:35:56 GMT

I’m new here although I’ve browsed the forums on and off for years. I’ve recently decided I want to get a new credit card, specifically one that offers travel rewards. In doing pretty extensive research I’ve decided I want the Chase Sapphire Preferred. I like the flexibility of the UR points. I’m not sure I would get approved though. Here are my stats:

Credit score: TU 712, only one I have access to through Barclaycard

AAoA: 3 yrs 6 mo

Utilization: ~ 1%

3 inquiries on TU, two will drop in July. None on EQ.

100% payment history

Income: $32000

Cards:

Barclaycard VISA - $8800 (6 yrs)

CFNA - $2200 (4 yrs)

Target Mastercard - $1500 (3 yrs)

Synchrony (I know, I know) - $6000 (3 yrs)

Local Credit Union Mastercard - $8800 (1 yr)

Other debt: $25k on student loans and $6k on car loan

And the big bad: an unpaid apartment collection that won’t drop for two more years. I don’t believe I owed this money, but I’ve disputed and they won’t budge.

I have an old Chase checking acct from college but no cards with them. Mostly I’m concerned with my relatively low income and of course the collection. Prequal on their site turns up nothing. I don’t want to waste a hard pull and wind up not getting it. I know nothing is certain but I’m trying to get a feel for my chances. I’m considering trying for the SW cobranded card first instead of trying to get CSP right off the bat. Any feedback would be greatly appreciated.

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 03:45:40 GMT

@Anonymous wrote:
I’m new here although I’ve browsed the forums on and off for years. I’ve recently decided I want to get a new credit card, specifically one that offers travel rewards. In doing pretty extensive research I’ve decided I want the Chase Sapphire Preferred. I like the flexibility of the UR points. I’m not sure I would get approved though. Here are my stats:

Credit score: TU 712, only one I have access to through Barclaycard
AAoA: 3 yrs 6 mo
Utilization: ~ 1%
3 inquiries on TU, two will drop in July. None on EQ.
100% payment history
Income: $32000

Cards:
Barclaycard VISA - $8800 (6 yrs)
CFNA - $2200 (4 yrs)
Target Mastercard - $1500 (3 yrs)
Synchrony (I know, I know) - $6000 (3 yrs)
Local Credit Union Mastercard - $8800 (1 yr)

Other debt: $25k on student loans and $6k on car loan

And the big bad: an unpaid apartment collection that won’t drop for two more years. I don’t believe I owed this money, but I’ve disputed and they won’t budge.

I have an old Chase checking acct from college but no cards with them. Mostly I’m concerned with my relatively low income and of course the collection. Prequal on their site turns up nothing. I don’t want to waste a hard pull and wind up not getting it. I know nothing is certain but I’m trying to get a feel for my chances. I’m considering trying for the SW cobranded card first instead of trying to get CSP right off the bat. Any feedback would be greatly appreciated.

An alternative is to apply for a Freedom card, then 6 months or so down the line apply for the CSP. You can start accumulating Ultimate Rewards points that can then be transferred to the CSP. You appear to check all the boxes but I think your DTI would be a concern. If your checking account is still active I suggest going in to a branch and asking a personal banker if you have any in-branch pre-approvals.

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 03:49:56 GMT

Oh I forgot about the Freedom. That’s not a bad idea. I’ll have to see if that account is still open and if so I will go in person. I agree on the DTI, it doesn’t help things.

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 03:54:57 GMT

Also, the spend to get the SUB will consume a significant portion of your stated income; and given that Sapphire cards don't offer 0% APR on purchases, and the interest rates, you really don't want to be carrying balances for a long time.

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 04:00:36 GMT

That’s true, and I would make sure to never carry a balance. My plan for the SUB was to pay rent with the card for a few months. My husband and I share the cost so it wouldn’t put me out of my comfort zone of spending. Carrying a balance completely negates all the rewards, IMO. Come to think of it my husband has stellar credit and significantly more income. Maybe we should apply together.

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 04:14:56 GMT

@Anonymous wrote:
That’s true, and I would make sure to never carry a balance. My plan for the SUB was to pay rent with the card for a few months. My husband and I share the cost so it wouldn’t put me out of my comfort zone of spending. Carrying a balance completely negates all the rewards, IMO. Come to think of it my husband has stellar credit and significantly more income. Maybe we should apply together.

You are allowed to use combined household income when applying for Chase; so there's no need to make a joint application if you don't need to. Regulation Z issued by the CFPB states that spouses/partners can combine incomes for which they have "a reasonable expectation of access." Given what you've stated about your credit profile I don't see why you wouldn't be approved if you combined incomes.

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 04:19:35 GMT

Oh wow, I had no idea you could do that! Thank you so much. That’s incredibly helpful. Combined we have close to $100k in income so obviously that changes things. I may just give it a shot then!

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 04:30:47 GMT

@Anonymous wrote:
Oh wow, I had no idea you could do that! Thank you so much. That’s incredibly helpful. Combined we have close to $100k in income so obviously that changes things. I may just give it a shot then!

That portion of Regulation Z was put in place to enable stay-at-home moms and others who don't work outside the home to open credit in their own names by using their spouse's/partner's income. So as long as you're over 21, share the same household, and can demonstrate a "reasonable expectation of access" you can used combined incomes on credit applications (the exception would be credit unions that require only the applicant's/member's income).

Good luck...let us know how it turns out.

Re: CSP Chances?

sarge12 — Thu, 16 May 2019 04:42:21 GMT

Tammy Two,

I do not know your chances, but this past week I received notice from Chase that they were closing my freedom unlimited card next month due to inactivity...I also have the Chase Amazon Prime card also. I called them, and they asked me if I wished to have them reconsider it. Since I had not used it in 2 years, I asked them if they could just move the limit to my Amazon Prime card, and she said she could. Now when I went on the account website I was a bit shocked, because my inbox had 2 messages from the same day. Message 1 was notifying me of the planned closure. Message 2 was a pre-approval for the CSP card with 60,000 bonus points. That is 600 dollars, but I am in the garden so I did not accept the pre-approval. It really confuses me why they would close the freedom unlimited for no activity, and still try to bribe me to open a new card that would see the same fate after I took their money on the SUB. It would have required 4000 in 3 months in charges. I just can not figure out why CC issuers keep bribing me when it just results in sock drawering the card after meeting the SUB, especially when I have not paid a dime in credit card interest in over 10 years. I try to be nice, and not take their free money SUB's, and still they double down. I of course would have to close that card since it has an AF of 95 dollars, but I would still be 500 dollars to the good. I really do search for the logic in this, but really can't find any.

Re: CSP Chances?

sarge12 — Thu, 16 May 2019 05:18:25 GMT

I hope someone reading this can answer this question. I just opened my Chase card site again to read the prior commented on secure message. When I opened the page, there was a banner saying Important information about your upcoming mortgage service transfer. My issue with this is that I have no mortgage with Chase. Is this just a generic message that is at the top of everybodies accounts page, or should I be concerned? Usually the info at the top concerns only my accounts, and in the linked FAQ it does not answer that question. I hope someone else with only chase credit cards can tell me if it is at the top on their accounts page as well.

Re: CSP Chances?

sarge12 — Thu, 16 May 2019 06:10:34 GMT

@Anonymous wrote:
That’s true, and I would make sure to never carry a balance. My plan for the SUB was to pay rent with the card for a few months. My husband and I share the cost so it wouldn’t put me out of my comfort zone of spending. Carrying a balance completely negates all the rewards, IMO. Come to think of it my husband has stellar credit and significantly more income. Maybe we should apply together.

Be aware, if you applied for the freedom card and did a PC for the CSP, you would not qualify for the CSP SUB. At least that has been my experience, unless you are offered a bonus to do a PC. I have had that offer for a PC from the Amex BCE to the Amex BCP card with an annual fee and offered a 200 dollar bonus as well as 6% cash back on grocery stores vs 3% on the BCE.

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 10:55:40 GMT

@sarge12 wrote:
I hope someone reading this can answer this question. I just opened my Chase card site again to read the prior commented on secure message. When I opened the page, there was a banner saying Important information about your upcoming mortgage service transfer. My issue with this is that I have no mortgage with Chase. Is this just a generic message that is at the top of everybodies accounts page, or should I be concerned? Usually the info at the top concerns only my accounts, and in the linked FAQ it does not answer that question. I hope someone else with only chase credit cards can tell me if it is at the top on their accounts page as well.

Its a generic notice to Chase mortgage customers; if you don't have a mortgage with Chase you can safely ignore it.

Re: CSP Chances?

CreditInspired — Thu, 16 May 2019 14:18:12 GMT

@Anonymous wrote:
That’s true, and I would make sure to never carry a balance. My plan for the SUB was to pay rent with the card for a few months. My husband and I share the cost so it wouldn’t put me out of my comfort zone of spending. Carrying a balance completely negates all the rewards, IMO. Come to think of it my husband has stellar credit and significantly more income. Maybe we should apply together.

And since it's household income that you have access to (hopefully ), you can use that income in your application.

On another note. It would be a good idea for you to know your 3 FICO scores. You can find them by going to Credit Check Total for a $1 membership for 7 days. Make sure to cancel so you wont be charged a monthly fee.

Re: CSP Chances?

CreditInspired — Thu, 16 May 2019 14:18:55 GMT

@Anonymous wrote:
@Anonymous wrote:
That’s true, and I would make sure to never carry a balance. My plan for the SUB was to pay rent with the card for a few months. My husband and I share the cost so it wouldn’t put me out of my comfort zone of spending. Carrying a balance completely negates all the rewards, IMO. Come to think of it my husband has stellar credit and significantly more income. Maybe we should apply together.
You are allowed to use combined household income when applying for Chase; so there's no need to make a joint application if you don't need to. Regulation Z issued by the CFPB states that spouses/partners can combine incomes for which they have "a reasonable expectation of access." Given what you've stated about your credit profile I don't see why you wouldn't be approved if you combined incomes.

You beat me to it

Re: CSP Chances?

Anonymous — Thu, 16 May 2019 14:23:48 GMT

@Anonymous wrote:
That’s true, and I would make sure to never carry a balance. My plan for the SUB was to pay rent with the card for a few months. My husband and I share the cost so it wouldn’t put me out of my comfort zone of spending. Carrying a balance completely negates all the rewards, IMO. Come to think of it my husband has stellar credit and significantly more income. Maybe we should apply together.

You leave Ron out of this, Tammy Two! (Sorry, I couldn't resist)

Good luck with the app!

Re: CSP Chances?

Anonymous — Fri, 17 May 2019 03:22:37 GMT

I had hoped someone would know what my username meant! 🤣 Thank you!

Re: CSP Chances?

2GreenThumbs — Fri, 17 May 2019 05:32:59 GMT

@Anonymous wrote:

You are allowed to use combined household income when applying for Chase; so there's no need to make a joint application if you don't need to. Regulation Z issued by the CFPB states that spouses/partners can combine incomes for which they have "a reasonable expectation of access." Given what you've stated about your credit profile I don't see why you wouldn't be approved if you combined incomes.

That's why I love these boards. I learn something new all the time. Is Chase the only lender that allows this? I think I'll update my income on my Chase accounts.

Re: CSP Chances?

Anonymous — Fri, 17 May 2019 07:26:19 GMT

@2GreenThumbs wrote:
@Anonymous wrote:

You are allowed to use combined household income when applying for Chase; so there's no need to make a joint application if you don't need to. Regulation Z issued by the CFPB states that spouses/partners can combine incomes for which they have "a reasonable expectation of access." Given what you've stated about your credit profile I don't see why you wouldn't be approved if you combined incomes.
That's why I love these boards. I learn something new all the time. Is Chase the only lender that allows this? I think I'll update my income on my Chase accounts.

It does not only apply to Chase. Most, if not all, of the major lenders allow you to combine incomes. You simply have to read the fine print of what each lender considers to be an applicant's income. The only exception I've found is credit unions. Since credit unions are membership-based institutions they will only accept the income of the member applying for the credit product. If both spouses/partners are members of the CU, they are allowed to combine incomes but they will also have to make a joint credit application.

Unfortunately, I've also seen the "reasonable expectation of access" exception abused. It is intended for adults over the age of 21 who share a household, e.g. spouses or domestic partners. But I've also seen on these boards college students and children still living at home, both minor and adult, state that they claim all or part of their parents' income on applications. However, the law assumes that children/students do not have "a reasonable expectation of access" to their parents' incomes.

You can read how this exception came about in this press release from the CFPB:

The CFPB Amends Card Act Rule to Make it Easier for Stay-at-Home Spouses and Partners to Get Credit Cards

"For credit card applicants who are 21 or older, the Bureau’s revision allows card issuers to consider third-party income if the applicant has a reasonable expectation of access to it. Although today’s rule applies to all such applicants regardless of marital status, the Bureau expects that it will ease access to credit particularly for stay-at-home spouses or partners who have access to a working spouse or partner’s income."

Re: CSP Chances?

Anonymous — Fri, 17 May 2019 14:50:33 GMT

Well, it turns out our apartment complex won’t accept credit cards for rent. I’m trying to figure out a workaround but if not I don’t think I’ll be trying for CSP until we have a significant expense that comes up. Bummer!

Re: CSP Chances?

Anonymous — Fri, 17 May 2019 15:02:21 GMT

@Anonymous wrote:
Well, it turns out our apartment complex won’t accept credit cards for rent. I’m trying to figure out a workaround but if not I don’t think I’ll be trying for CSP until we have a significant expense that comes up. Bummer!

Plastiq

Obviously you wouldn't be able to pay several months rent in advance but you can certainly pay utilities in advance several months at a time to negate the 2.5% fee.