Why CSP?

[wasCB14]

It seems like there's been a flurry of interest lately in CSP. I don't get it.

People who spend a lot and want to keep the card are better off with CSR. True, having a few AUs can change the math.

People who mostly want the bonus for use as miles can get a variety of Chase cobrand cards with bigger bonuses and a few perks. No $10k minimum CL for most/all cobrands.

People who want a "travel cash" card bonus have several options from issuers less sensitive to new accounts. *That frees them to chase bonuses more aggressively.*

It seems to me like CSP is rarely the optimal choice for anyone anymore (AU cases sometimes excepted). Yet it remains popular. Thoughts?

[UpperNwGuy]

I agree completely.  One of the things that Amex has done better than Chase recently is creating a Gold card with benefits that are distinct from the Platinum card.  In other words, Gold is not just a junior Platinum.  Chase on the other hand has kept the CSP as a junior version of the CSR. The CSP has all the same benefits as the CSR, just less of them.  If a person travels even an average amount, the CSR will be a better overall value than the CSP, despite the higher fee.  So why would anyone ever get the CSP?  I can't figure it out.

By the way, we now know that during the first year of the CSR's existence, Chase would not give bloggers any compensation for CSR referrals, but they gave very generous compensation for CSP referrrals, so the bloggers kept promoting the CSP as a great card.

[Anonymous]

No fee year one.

If credit line supports, can still pc to CSR after year one.

[wasCB14]

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@Anonymous wrote:

No fee year one.

If credit line supports, can still pc to CSR after year one.

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But that also means reduced rewards and benefits for the first year.

I guess some people also have a huge number of URs from no-AF cards and want a cheap way to make them transferable...though anyone planning some major and/or complicated award trip might want the stronger CSR benefits.

And if avoiding/minimizing annual fees is a very high priority, cobrands can probably deliver more value.

[wasCB14]

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@UpperNwGuy wrote:

Chase on the other hand has kept the CSP as a junior version of the CSR. The CSP has all the same benefits as the CSR, just less of them.  If a person travels even an average amount, the CSR will be a better overall value than the CSP, despite the higher fee.  So why would anyone ever get the CSP?  I can't figure it out.

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CSP's launch predates my credit history, though even in my early credit years it was a strong option.

But since around 2016, Chase just hasn't done much to keep it competitive, even though they were willing to take a big hit up front to launch CSR.

[kdm31091]

Honestly I think part of it is 5/24. It makes all Chase cards seem more exclusive and alluring. Whether intended or not, I think it has made the myfico audience lust for Chase products more just because they are hard to obtain. The old "you always want what you can't have" type thing.

I agree with your main point though. The product really isn't all that competitive.

[Anonymous]

Isn't CSP easier to get?

[redpat]

Lol, my CSR is in the SD since gold changes. Chase is really weak right now, IMO.

[Anonymous]

I view them as an elite lender. We didn’t necessarily decide on them based on what they can do for us now. More of a long term strategy for us. I totally can see why you say what you say. To each their own.

[wasCB14]

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@Anonymous wrote:

Isn't CSP easier to get?

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The minimum approval for CSP is $5k. The minimum approval for CSR is $10k.

CSP is easier to get than CSR. However, if someone lacks the income/spend to support a $10k CL, that person may be better-off getting a cobrand card first for the larger bonus.

I'm not sure which on which cobrand cards Chase will approve customers for less than $5k, but I think Ritz (closed to new apps) was the only one requiring more than $5k.