CSP APPROVAL

[Harvey26]

Hey Fico Family,

My Gramps went into a local chase branch and they told him he was approved for a CSP. He got approved for 5.6K and then called me after the fact and I said that has an annual fee and thats a travel card. Is there any way we can product change it before he gets it or just close it and transfer the credit to his freedom card? If not we will just close it he does not fly anywhere and barely leaves his house somedays.

[gdale6]

Moved to CC for better coverage

[Trikoret]

Is he getting the 60k sub or 80k? Either way he's still ahead the first year if he cashes in his points. They are equal to $600 or $800. After the first year, he can PC to a no fee Chase card. 

[Remedios]

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@Harvey26 wrote:

Hey Fico Family,

My Gramps went into a local chase branch and they told him he was approved for a CSP. He got approved for 5.6K and then called me after the fact and I said that has an annual fee and thats a travel card. Is there any way we can product change it before he gets it or just close it and transfer the credit to his freedom card? If not we will just close it he does not fly anywhere and barely leaves his house somedays.

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Or conversely, pay $95.00, and if they got approved for 80000 UR offer, they could use remaining 70000 URs as a statement credit. You don't need to fly to be able to use $700.00. 

If paying $95 is an issue, how where they going to tackle minimum spend? 

Was this something they understood at the time they applied? 

[K-in-Boston]

It has a very large signup bonus, so I would suggest that he go ahead and pay the annual fee this once, meet the spending requirement on it, and collect the 50-80k bonus offer on the card.  Even if he just cashes it out like he does for his Freedom, that's $500-$800, and significantly more than the $95 annual fee.  The account has already been opened, so he may as well make the best of it.  While there are other options, there is no "undo."

In a year, he could either product change it to Freedom, Freedom Flex, Freedom Unlimited, or Sapphire - none of these have an annual fee (Sapphire Reserve is also an option, but not a good one for your grandfather based on your statements).  Alternately, he could move almost the entire limit to his existing Freedom card and close it.

Edit: LOL there were no replies when I started typing this.

[Harvey26]

@K-in-Boston He wont meet the sign up bonus. He barely spends $500 a month on his credit cards on a regualr basis. I will try to close it and transfer the credit

[Trikoret]

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@Harvey26 wrote:

@K-in-Boston He wont meet the sign up bonus. He barely spends $500 a month on his credit cards on a regualr basis. I will try to close it and transfer the credit

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The bank employee didn't explain that it had an annual fee? I would file a complaint if not. 

[Remedios]

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@Harvey26 wrote:

@K-in-Boston He wont meet the sign up bonus. He barely spends $500 a month on his credit cards on a regualr basis. I will try to close it and transfer the credit

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Hold up for a second...

Let's not poke chase to the extent where they close the other card, also.

If he cannot meet the spend and didn't know what he was applying for, close it.

But ...get approved, take the limit and run..that's not going to end well. 

[K-in-Boston]

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@Harvey26 wrote:

@K-in-Boston He wont meet the sign up bonus. He barely spends $500 a month on his credit cards on a regualr basis. I will try to close it and transfer the credit

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That's almost halfway there.  Is he in a financial situation where he could comfortably pay things like utilities (gas, water, electric, phone, cable, etc.) ahead a couple of months?  It is a pretty substantial amount of cash back (plus another $40 earned for 1x categories on $4000 spend).

Agree with Remmy that it's risky to try to close immediately and move the limit.  If my earlier statement was unclear, my suggestion was to do so after the account has been opened for a year if a product change did not make sense.

[Harvey26]

@K-in-Boston Not really. I would assume he didnt hear the fee part but I guess we will keep it and just not use it and then after 6 months. Get rid of it. I would love to just close it and move the credit now. Just trying to get him to be debt free. What about just closing it?