Chase Sapphire Preferred: Credit Score Requirement and Everything You Need to Know

Whether you like to travel for fun or business, there are various ways that you can enjoy using the Chase Sapphire Preferred Card. For instance, if you spend $4000 on purchases over the first three months after account opening, you could earn 50,000 points that translate into bonus miles worth $675 which is enough for your first rewards ticket! Moreover, you will also get a single point for every $1 that you spend on typical, everyday things. You can also earn double miles when you use your card to make flight reservations and other travel arrangements.

With numerous benefits you can reap, it is no wonder many personal finance sites  have consistently rated Sapphire as one of the best rewards credit cards  along with American Express EveryDay Preferred card. To get most of the potential mile rewards you need to use the card to buy airline and hotel tickets though.  However, if you are not much of a travel buff, or it is just not something you want to do right now, you can also use these points towards merchandise in the Ultimate Rewards Program. The program is an affiliate shopping program developed by Chase specifically for card customers, which offers you exclusive access to products and services. If this still does not interest you, then you might want to know that you can also use your rewards benefits to pay down the balance of your account, which is almost the same as having a cash back option.

 

Chase Sapphire Credit Card Travel Rewards

 

Chase Sapphire Reserve Approval Odds

Chase Sapphire Reserve approval odds are quite low for those with average credit scores. If you don’t have a picture-perfect credit rating, you may want to improve your credit score above 700 by rebuilding your credit first. In another scenario, if you already own an entry level Chase credit cards such as Chase Freedom Unlimited, you may want to build a relationship with Chase by utilizing/maxing out your credit line and avoiding late payments. These two factors, i.e., credit utilization and credit history play a vital part in increasing the approval odds for the Chase Sapphire Reserve card.

Chase Sapphire Reserve Credit Score Requirements

The Sapphire Reserve is one of the most popular travel reward cards on the market. The only problem is that not everyone is eligible. The credit score requirements fall within the so-called excellent credit score ranges of 720 -800 points, not quite good news for those having bad credit scores. On a side note, not everyone has the chance of getting approved for the card despite having a good credit score as a Reddit user posted here. Considering this, you may want to get your credit reports first to make sure you meet their  requirements before trying to apply for the card. You might get a free credit report for free from annualcreditreport.com or Credit Karma.

In a possible circumstance, if you got a lower than minimum credit score required for the card, the only option available for you is building your creditworthiness. Building credit from sub-700 point to excellent one can be easy or not depending on your credit history. If you expect a quick result, a credit repair company can help you achieve that goal within relatively short period. Aside from the credit repair, they will usually provide credit monitoring services to keep a tab on your credit report.

 

Chase credit requirement

Other Requirements

As with other credit card issuers, there are specific criteria you need to meet if you want to apply for a Chase credit card. Officially, A high credit score alone doesn’t guarantee that your Chase application will get approved. Chase takes other factors into their considerations including but not limited to :

Chase Sapphire Reserve Rule 5/24

If you have been approved for at least five credit cards in the last 24 months, your Chase Sapphire Reserve application will be automatically rejected. You will be prompted with the rule 5/24 message when applying online on Chase secure website.

Your Saving Account, Loans and Debt Ratio

In addition to recent credit card applications, Chase will also review your other open credit accounts. A high debt ratio can affect your chances of approval. Existing Chase customers can get a more favorable reviews and  a higher chances of approval despite  5/24 rule. Having a Chase saving account/other Chase bank accounts/ loans with them such as Chase Total Checking Account or, auto loans and home equity loans (Chase currently does not offer a personal loan and a student loan ) may help increase your chance for approvals.

What if your application is denied? The denial does not mean the end of the word, if your application got rejected you might still a second chance, try calling Chase consideration line, talk to their credit analyst and explain to them that you deserve the card. There are some instances where some folks whose applications was rejected got the their application approved after requesting a reconsideration.

Annual Fee and APR

Chase Sapphire Preferred card is a travel credit card like Capital One Venture or Platinum Card from American Express. The card comes with an annual fee of $95 (waived for the first year), so if you don’t fit into the categories of frequent flyers or don’t like to spend your money dining in a fancy restaurant, the card isn’t for you. You may pick other Chase cards with lower annual fees such as Chase Freedom or Chase Slate which offer zero annual fees for the first year. If the Sapphire the annual fee turns you off and you’re a business owner you might want to pick Chase Ink Business Card instead, the card is among Chase business credit cards that also offer travel rewards.

Unlike Chase cash back credit cards such as Chase Slate and Chase Freedom which offer zero intro ATR for the first 15 months and a balance transfer after account opening, Chase Sapphire Preferred has no intro APR. Its regular APR currently is at 17.49%–24.49, which is definitely not fitting into the low APR credit card category. If you seek a cash back credit card instead of a travel card and hate the annual fee, you may consider the above cash back credit cards or another bank credit card from other card issuers such as Capital One Quicksilver.

Two Reward Points for Travel and Dining

 

Chase Sapphire Preferred Highlights

A Big Bonus

As a Chase Sapphire Reserve card holder, you’re entitled to Chase Ultimate Rewards Points. You can earn 50,000 bonus points after spending $4,000 in the first three months. If $4,000 is too much to spend in three months, make a quick estimate of your family’s monthly cost.

Two Reward Points for Travel and Dining

You can earn Chase Sapphire Preferred two times more points for travel and dining. The bonus means you will earn 2 points for every dollar spent on airline tickets, train tickets, hotels and restaurants (including fast food).

Chase Sapphire Reserve Travel Benefits

If you redeem your points through the Chase Ultimate Rewards online portal, you’ll get 25% more value on airline tickets, hotels, rental cars and more.

Easy Point Transfer

Chase points are not rigid, what does this mean? It implies that you can easily transfer them to participating partner programs, and there are no points transfer fees, and you will receive a 1:1 value. Your points can be assigned to an airline or hotel loyalty program via the Chase Ultimate Rewards portal.
Additional benefits for frequent travelers.

Trip Cancellation

If you have a canceled flight or interrupted trip because  of illness, adverse weather or other insured conditions, you are likely to be reimbursed up to $10,000 per trip for your prepaid, non-refundable travel expenses.

Delayed baggage handling

If your luggage gets delayed for more than six hours, Chase Sapphire Preferred will give you up to $100 per day for five days for essential purchases like toiletries and clothing.

A Collision Damage Waiver

Chase Sapphire Preferred allows you to waive collision insurance cost from the car rental company. Chase provides reimbursement up to $75.000 for collision damage and theft if you use the card to rent a car in and outside the US.

Chase Sapphire Reserve Vs. Chase Sapphire Preferred At a Glance

The Sapphire Reserve card comes with an annual fee of $450 while the Sapphire Preferred has a $95 annual fee (waived for the first year). However, the Sapphire Reserve hefty annual fee comes with a $300 annual travel credit which you cannot get from the Reserve card. Another difference between the two is as a Reserve cardholder gets lounge access (priority pass) at select airports. You won’t get the privilege if you own a Sapphire Preferred card.

Chase Sapphire Reserve Vs Bank Of America Travel Reward Highlights

Both are among the preferred choices among travelers with their own benefits and downsides. The Sapphire comes with the annual fee of $95 (waived for the first year) while the Travel Reward has no annual fee. If you’re not into the annual fee, the Travel Reward is your first choice. However, the Sapphire card comes with real mileage points and more generous rewards you can’t find on the Bank of America  Travel Reward. Both cards have no foreign transaction fees, giving you peace of mind when going on a business trip abroad.

Wrapping it Up

Chase Sapphire credit card is a travel/hotel offered by Chase bank with numerous benefits, yet the card is not for everyone or those with fair/bad credit rating. You need to have an excellent credit score to be eligible for it. There are a couple of things you can do to increase the approval odds such as opening a Chase savings account or applying for a secured credit card that is tied to your bank account with the aim of building your creditworthiness gradually.

 

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