CSP questions

[Anonymous]

I'm a grad student making about 29k, and because of my banking relation with Chase, I got a green check mark 'selected for you' offer for the CSP. I've been wanting to get a new Visa card, as the only Visa I have (Chase Freedom, 8 months old) has a really low 500 limit (opened when my credit file was only 7 months old. Current TU,EX scores are around 740). My other cards are a Disco with 4500 limit (14mo old) and an AMEX BCE with 10k limit, which is not yet reporting. The CSP seems interesting because it is a 5k minimum card with good perks. Also, I intend to transfer over a good amount of my money over to a credit union to get better interest rates, and I doubt I would qualify for the CSP anytime soon in that case. I will be able to hit the minimum spend by paying for rent with it (will spend some 60$ extra in charges, but still worth it for the huge sign-up bonus).

I had a few questions about the CSP - 

-First is a selected for you offer a guaranteed approval?

-Does the CSP make much sense if you don't travel too much? I'm more interested in it due to the higher CL and 2x on dining. I don't fly very often, and I doubt if I will even redeem my points for travel currently. I do intend to stack up on the points and use it for travel in the future though, maybe by getting a CSR after I graduate. 

-After 1 year, is it easy to downgrade the card? How does that work exactly? Do you still keep the current card, and is it just converted on the backend (Asking because the metal card would be cool). I see that the plain Sapphire has FTFs, but 1 year from now, I plan to get a Cap1 QS, so that shouldn't be an issue. If you are interested in using it as a CSP again, can you ask to get it upgraded and pay the AF in the future?

-I would also like to get the FU card sometime in the future. If the CSP app is denied, can I ask for the HP to be used for an FU application? Even otherwise, does it make sense to appply for it now which will result in a single enquiry if I understand correctly, or do it after my profile ages a bit more? I am currently at 3/24.

[Anonymous]

Selected for you means 90% you got the card. Usually only ones Denied with that have had some serious recent issues like late's, collections etc.

CSP is mainly a travel card, 2 points per $1 is not that good of a deal honestly there are plenty that reward earring at restaurants much more than that.

It's not a "higher CL" it does have a higher starting limit but you are just as likely to be approved for a 5k Limit with it as you would pretty much any other card.

Easy to convert, they give you a new card for whatever you convert it to you can keep the CSP card but it won't work anymore the chip will be disabled.

You can convert it back, will not get the AF waived a 2nd time though.

You cannot use this application if denied to app for another card that would be another HP though I would be seriously surprised if you were denied with a selected for you offer.

All of that being said, I would say keep this card and in the future get a Freedom card you can earn 5% with the Freedom card and transfer the points to CSP so they are worth 1.25 points per 1 point when spent on travel, hotels, car rentals.

[Anonymous]

---

@Anonymous wrote:
Selected for you means 90% you got the card. Usually only ones Denied with that have had some serious recent issues like late's, collections etc.

CSP is mainly a travel card, 2 points per $1 is not that good of a deal honestly there are plenty that reward earring at restaurants much more than that.

It's not a "higher CL" it does have a higher starting limit but you are just as likely to be approved for a 5k Limit with it as you would pretty much any other card.

Easy to convert, they give you a new card for whatever you convert it to you can keep the CSP card but it won't work anymore the chip will be disabled.

You can convert it back, will not get the AF waived a 2nd time though.

You cannot use this application if denied to app for another card that would be another HP though I would be seriously surprised if you were denied with a selected for you offer.

All of that being said, I would say keep this card and in the future get a Freedom card you can earn 5% with the Freedom card and transfer the points to CSP so they are worth 1.25 points per 1 point when spent on travel, hotels, car rentals.

---

If you can meet the min spend, it's certainly worth getting for the first year.   Re the last line above, you will need to determine whether keeping it is worth the $95 AF, which will depend on how much travel you can do (and how much you use the Freedom in 5% categories)

[Anonymous]

Hmm. The only reason I was apprehensive about it was that my income and credit history is somewhat low, and from what I have heard the underwriting standards are fairly strict for the card. Didn't want to apply if the approval odds are low. If the odds are that good, I'll definitely give it a go. 

As for the CL, this seems like the only Visa/Mastercard with a guarenteed higher CL. CapOne is only showing prequals for QS1, and Citi is out of the question (my Equifax report doesn't seem to exist). I felt that I might as well apply for either this or the FU.

[Anonymous]

I don't know how long ago you opened your Amex account that you said has a $10k limit, but if there's a chance it may report soon that could be a good thing prior to apping for the CSP.  If Chase sees that you have a 5-figure limit already, they made be more inclined to match that limit or get you closer to it, where if you only have your Discover and Freedom cards on your report they can throw you the lowest $5k SL and that would beat your Discover which is currently your highest limit.

There's debate out there both ways as to whether or not creditors try to "match limits" and such, but if it's a matter of a few weeks before your Amex reports I'd honestly wait as it could mean a more favorable SL on the CSP assuming approval, which I agree is extremely likely for you.

[Anonymous]

If it's a sure thing you're after then go for it, because green checks are about as close to a sure thing as you can get. It won't be the best card for you based on what you've stated you spend on. There are cards that offer 3 times on dining. That being said the CSP is a good all around starter card in the travel card market.

[Anonymous]

If the AMEX does report (should be in a few days, as I opened it on Feb 14), that will bring down my AAoA from around 11 months to around 7 (fairly young file). Is AAoA not a big factor?

[SecretAzure]

---

@Anonymous wrote:

If the AMEX does report (should be in a few days, as I opened it on Feb 14), that will bring down my AAoA from around 11 months to around 7 (fairly young file). Is AAoA not a big factor?

---

It's a big factor for thin profiles like you have. I'd hold off applying for at least another year to solidify your AAOA and to assure you'll get a SL worth having. Have you already asked for a CLI with Amex? You're almost at 61 days.

[Anonymous]

---

@Anonymous wrote:

If the AMEX does report (should be in a few days, as I opened it on Feb 14), that will bring down my AAoA from around 11 months to around 7 (fairly young file). Is AAoA not a big factor?

---

While most report seeing their Amex account pop up on their credit report after 2 cycles, bear in mind that there are plenty of others that don't see it until the 3rd cycle.

[Anonymous]

Update : I pulled the trigger and applied for the CSP. Instant approval with a 6k limit. Thrilled! Now have to plan for hitting the minimum spend.

Can I call and ask to get the card overnighted?