Thoughts on CSP?

[Anonymous]

---

@Anonymous wrote:
Unless you already were planning on renting a car for about a week when you travel. The benefit of the rental insurance could eat up the fee

---

I get rental insurance though my Visa Sig Venture.  But I'm most likely going to convert it to the Venture One around when the annual fee will post if they don't waive the fee.  (Not sure if that card still gives the rental protection.)  I do use it whenever I rent a car.

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:
How do you plan to use the UR? I found out my mistake on this card when I learned how limited reward flights were in my area based on their transfer partners

---

Mostly for the Hyatt properties.  I'm based in Las Vegas, and I have flight benefits through Southwest Airlines so I'm pretty set domestically.  I was also thinking about the Citi TY Pref. for the Hilton benefits.

---

Get the Hyatt card! Points are worth a lot and card looks nice.

---

I want to eventually.  The sign up bonus on that card is amazing!  I'm just trying to determine if I want the CSP/Freedom combo because I won't be under the 5 accounts in 2 years for much longer (And once I'm over, I'm not sure if I'll ever be below again thanks to temptation and sign up bonuses).

[CreditScholar]

---

@Anonymous wrote:

---

@kdm31091 wrote:
With that spend level it doesnt sound like CSP makes sense for you long term

---

Around what level of spend would it be worth it in the long term?  I'm currently in my first job (just graduated college last year and wasn't employed during), and I'm hoping my earning potential will pick up fairly rapidly (Currently trying to get some work experience).

---

+1. I would agree with the others in that I don't think approval will be a major issue for you.

Regarding the value of your card, I think your situation is very borderline and this is only so because such a high percentage of your spend is in the 2x categories.

If you're currently spending $1500 per month with $900 of that on dining, you'd earn 28800 points per year. At roughly 2 cpp that would give you $576, and at 1.8 cpp you would have $518. After the AF you'd have $481 or $423 left. In comparison a straight 2% cash back card would give you $360.

In this case the CSP would come out as the winner, however this is only if you feel that you'd be able to get a decent value out of each point. Mathematically the break even point is 1.25cpp when compared to a straight 2% cash back card.

If you can't, then as the others mentioned the Hyatt card would be a good alternative. The annual Cat 1-4 free night cert will more than offset the AF, and when combined with the same bonus categories as the CSP, you'd end up with a higher net return overall.

[Anonymous]

---

@CreditScholar wrote:

---

@Anonymous wrote:

---

@kdm31091 wrote:
With that spend level it doesnt sound like CSP makes sense for you long term

---

Around what level of spend would it be worth it in the long term?  I'm currently in my first job (just graduated college last year and wasn't employed during), and I'm hoping my earning potential will pick up fairly rapidly (Currently trying to get some work experience).

---

+1. I would agree with the others in that I don't think approval will be a major issue for you.

Regarding the value of your card, I think your situation is very borderline and this is only so because such a high percentage of your spend is in the 2x categories.

If you're currently spending $1500 per month with $900 of that on dining, you'd earn 28800 points per year. At roughly 2 cpp that would give you $576, and at 1.8 cpp you would have $518. After the AF you'd have $481 or $423 left. In comparison a straight 2% cash back card would give you $360.

In this case the CSP would come out as the winner, however this is only if you feel that you'd be able to get a decent value out of each point. Mathematically the break even point is 1.25cpp when compared to a straight 2% cash back card.

If you can't, then as the others mentioned the Hyatt card would be a good alternative. The annual Cat 1-4 free night cert will more than offset the AF, and when combined with the same bonus categories as the CSP, you'd end up with a higher net return overall.

---

1.25cpp is the minimum for CSP redemptions (using it to pay for travel instead of transfer), so...

[Anonymous]

I would say go for it. Your scores seem high enough for online approval but If denied you can always call the reconsideration line for Chase and see if you can get a representative to force approval. Sometimes this method works, sometimes it doesn't. It really is up to which rep you get on the line but I think your score is close enough to apply and be approved online.

Good Luck Mate

[Anonymous]

---

@Anonymous wrote:

I would say go for it. Your scores seem high enough for online approval but If denied you can always call the reconsideration line for Chase and see if you can get a representative to force approval. Sometimes this method works, sometimes it doesn't. It really is up to which rep you get on the line but I think your score is close enough to apply and be approved online.

Good Luck Mate

---

Bit the bullet and applied.  I figured that regardless of future worth, the bonus and lack of a year 1 annual fee would be worth it and I could determine next year if it's worth keeping.  Was hoping for a $10k approval, but I guess an instant approval for $5k is better then a decline.  Now to wait out for the $200 Freedom offer to reappear, and hope I get some type of eventual CLI on this account!  Thanks for all the help everyone!

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

I would say go for it. Your scores seem high enough for online approval but If denied you can always call the reconsideration line for Chase and see if you can get a representative to force approval. Sometimes this method works, sometimes it doesn't. It really is up to which rep you get on the line but I think your score is close enough to apply and be approved online.

Good Luck Mate

---

Bit the bullet and applied.  I figured that regardless of future worth, the bonus and lack of a year 1 annual fee would be worth it and I could determine next year if it's worth keeping.  Was hoping for a $10k approval, but I guess an instant approval for $5k is better then a decline.  Now to wait out for the $200 Freedom offer to reappear, and hope I get some type of eventual CLI on this account!  Thanks for all the help everyone!

---

AWESOME! Congrats!!!!  And yes, I hope you get the freedom 20-30k bonus! That is an easy way to 45+20k UR points!!!!!

[Anonymous]

Congrats on the card! For the long term, I think that the breakeven point is higher than was posted. Factoring in your QS1 and assuming you would have gone for Chase AARP instead of CSP for the dining category, I think that the breakeven point is about 1.5 cpp. If you had a true 2% card instead (maybe the Venture, but the AF takes away from that), your breakeven point is 1.625 cpp.

The bonus is great, but I'd carefully weigh whether the long term benefits are a fit for you.

[takeshi74]

---

@Anonymous wrote:

If I only spend $1,500 a month ($800-900 of that on dining) is it worth the annual fee after year 1? 

---

How did you decide on the CSP if you haven't run the numbers for your spend?  You should be doing this for any rewards card that you're considering.  For point/miles cards like the CSP you need to look beyond the earn rates and also look at redemptions to determine the value you can get per mile/point.

Offsetting the AF is an extremely low bar to set.

---

@Anonymous wrote:

1.25cpp is the minimum for CSP redemptions (using it to pay for travel instead of transfer), so...

---

There are options that will net less.

---

@Anonymous wrote:

Now to wait out for the $200 Freedom offer to reappear, and hope I get some type of eventual CLI on this account!

---

Have you read threads on Chase CLI's?

---

@Anonymous wrote:

I'm just trying to determine if I want the CSP/Freedom combo because I won't be under the 5 accounts in 2 years for much longer (And once I'm over, I'm not sure if I'll ever be below again thanks to temptation and sign up bonuses).

---

You'll want to keep that in check unless your credit profile supports churning.  However, given your other posts I would not guess that to be the case -- at least currently.  Carefully consider and research and don't let the itch to app make the decision for you.

[Open123]

---

Shinkiro wrote:  Bit the bullet and applied.  I figured that regardless of future worth, the bonus and lack of a year 1 annual fee would be worth it and I could determine next year if it's worth keeping.  Was hoping for a $10k approval, but I guess an instant approval for $5k is better then a decline.  Now to wait out for the $200 Freedom offer to reappear, and hope I get some type of eventual CLI on this account!  Thanks for all the help everyone!

---

+1

Congrats!  Right, this makes perfect sense, especially for a young and new credit file with potential income growth.  

Regardless of what transpires in year two (if your spend doesn't justify the fee, or if there's something better, just close the card), the return on your next $4K spend will be in excess of 100%.  And, you'll have a 2X Dining, travel, no FTA, and have full UR points for the next 12 months.

Seriously, no brainer.