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CSP strategy

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Established Member

CSP strategy

Hey guys,

 

I am looking to grab the CSP in the next week in branch. I currently have 3k in cash which I am trying to decide on which account to pay off before I apply.

 

Chase Freedom (Opened Jan 2018) -> balance 2800/4800

Discover Miles -> balance 3500/9000

Kay Jew -> 0/1500

Total -> 6300/15300

Util 41%

 

The CF is currently in the 0% APR period and my discover apr has a 18% apr. Should i use the cash to clear the CF and then apply or clear the Discover card. I wondering if the high balance on just the chase card would spook Chase, even knowing that once I pay the discover down, it would bring my UTI to 24%. The reason I want to get the CSP now is because I plan to use the  SUB points to travel this summer.

 

Scores are  between 680-705 across the 3 bureaus. 

Message 1 of 16
15 REPLIES 15
Frequent Contributor

Re: CSP strategy

In my opinion, you should always do what is most financially advantageous, which is usually to pay down your high interest cards first. 

 

That said, depending on the SUB and, if you simply cannot wait to apply, it may be better to pay them both down to <28.9% which would give you a nice score boost and increase your odds of CSP approval (with a nice SL).


Message 2 of 16
Valued Contributor

Re: CSP strategy

Unless your Discover card is going to report to the CRAs early next week, Chase wont "see" the payment next week.  If you are bound and determined to app next week, Id pay the Chase card first




3/2016 EX 644 CK-TU 642 CK-EQ 660 WalMart- 671.
>05/2019 CCT EX 804 TU 826 EQ 818
Thus will it come to pass. The Dying Leader will know the truth of the Opera House. The missing Three will give you the Five, who've come from the Home of the Thirteenth. You are the Harbinger of Death, Kara Thrace. You will lead them all to their End. End of line.
Message 3 of 16
Established Member

Re: CSP strategy

Thanks for the heads up, Discover does off-cycle reporting upon request, so If i pay it down and request Off cycle reporting, I;ve seen it uodate within two days of my request,

Message 4 of 16
Contributor

Re: CSP strategy

I personally would say that with your scores, you may want to wait a little longer until you can push your utility down further. Chase is really easily scared of risk with a new customer and I've seen that if your utility is north of 15%, they don't really like it unless you have really substantial income. 

4/2019:
12/2018:
Message 5 of 16
Super Contributor

Re: CSP strategy


@RutgersGrad15 wrote:

Hey guys,

 

I am looking to grab the CSP in the next week in branch. I currently have 3k in cash which I am trying to decide on which account to pay off before I apply.

 

Chase Freedom (Opened Jan 2018) -> balance 2800/4800

Discover Miles -> balance 3500/9000

Kay Jew -> 0/1500

Total -> 6300/15300

Util 41%

 

The CF is currently in the 0% APR period and my discover apr has a 18% apr. Should i use the cash to clear the CF and then apply or clear the Discover card. I wondering if the high balance on just the chase card would spook Chase, even knowing that once I pay the discover down, it would bring my UTI to 24%. The reason I want to get the CSP now is because I plan to use the  SUB points to travel this summer.

 

Scores are  between 680-705 across the 3 bureaus. 


I would pay off the Freedom card. Chase will report the zero balance quickly giving your scores a little boost.



5/10/19: FICO8 EQ 749 TU 779 EX 743 Total revolving limits 683300 (562300 reporting)
Message 6 of 16
Senior Contributor

Re: CSP strategy


@RutgersGrad15 wrote:

Hey guys,

 

I am looking to grab the CSP in the next week in branch. I currently have 3k in cash which I am trying to decide on which account to pay off before I apply.

 

Chase Freedom (Opened Jan 2018) -> balance 2800/4800

Discover Miles -> balance 3500/9000

Kay Jew -> 0/1500

Total -> 6300/15300

Util 41%

 

The CF is currently in the 0% APR period and my discover apr has a 18% apr. Should i use the cash to clear the CF and then apply or clear the Discover card. I wondering if the high balance on just the chase card would spook Chase, even knowing that once I pay the discover down, it would bring my UTI to 24%. The reason I want to get the CSP now is because I plan to use the  SUB points to travel this summer.

 

Scores are  between 680-705 across the 3 bureaus. 


IMHO, if it were me, I would get Disco balance to less than 28.9% ($2592) and Chase balance to less than 8.9% ($422) before applying for the CSP. Chase loves to HP (possibly 2) and it’s not worth it for a possible denial. 

 

Just my 2cents

GOALS: Garden til DEC 2020 and 800 Club

Scores
APR 2019: EX 787, TU 789, EQ 781
JAN 2019: EX 794, TU 783, EQ 801
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnate $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $15.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 7 of 16
Valued Contributor

Re: CSP strategy

Agreed with CreditInspired, not to mention if you want a Chase product, I would want to put enough toward the Chase product you already have, to get it down to a good balance position. If you want more from them, show them you’re dead serious with what they’ve given you already. My thought is that with Chase being as risk-averse as they are, show them the money before asking for more from them.
Rebuild commenced 5/2018

AmEx Delta Skymiles Gold | AmEx Hilton Honors Ascend | AmEx Hilton Honors | Discover IT | Target | VS | Home Depot | Lowes | Firestone | CapOne QuickSilver | Wayfair | Kohl’s

Charter Member of the Disco “No CLI For You!” Club



Message 8 of 16
Contributor

Re: CSP strategy

I would agree with @Creditinspired. If you follow those suggestions you will stand a much better chance of approval. Good luck with which ever way you decide to go.



Message 9 of 16
Valued Contributor

Re: CSP strategy

OP- to summarize, you currently have $6500 in CC dept of which $2800 is currently at 0% terms.  You have cash on hand to retire $3K of that debt.

 

Your plan to bonus-chase means you're committing yourself to spending a mininum of $4K in ~90 days.  There is no promotional 0% financing.  What is your plan to pay off this additional $4K? 

 

The current interest rates on this card are higher than that you currently have on your Discover card and any interest you incur degrades the effective value of the SUB.  You wouldn't be able to transfer BT to the CF as they're both Chase cards.

 

I'm not looking to discourage you from applying for the card, but rather to confirm, based upon your current situation as outlined, your awareness of what you're committing to.

(3/2019)
FICO 8 (EX) 801 (TU) 814 (EQ) 791
FICO 9 (EX) 824 (TU) 825 (EQ) 824

$800K+ club
Message 10 of 16