08 Aug Rumor Alert – The New Chase Sapphire Reserve Card & How the Chase 5/24 Bums Me Out

UPDATE: Not a rumor! I repeat, NOT A RUMOR!

CSR Chase Tweet

Here is the Chase tweet confirming the card!

The card exists and will be available for sign-ups on August 21st (Sunday)

I have updated the information below to reflect the best current details on the card.

Don’t you just love a good rumor!? I do and I don’t. I like the fact that new information is coming my way, but often take the information as fact, rather than what it really is… a rumor!

Well, there is a big rumor swirling around Reddit, Flyertalk, the Points Guy, Millions Mile Secrets, and the  BoardingArea blogs that Chase will soon (starting August 21st) release a brand new Chase-branded credit card product to compete with the likes of the Platinum Card from American Express and the Citi Prestige.

They [will] call it – the Chase Sapphire Reserve

The rumor started small but has since snowballed into a legitimate happening – with various card features, benefits, and costs to come with it.

Snowball - AYP

Lots of snowballs in there…

Here is a quick rundown of what everyone and their mother is taking about:

The Chase Sapphire Reserve:

                $300 Annual Travel Credit (automatically applied to your account)

                Lounge Access – [Potentially] A version of Priority Pass Select

                $100 Global Entry (or TSA PreCheck) Fee Credit

                A $450 Annual Fee (Not Waived), $75 for Authorized Users

Redeem Chase Ultimate Rewards for a 50% bonus (compared to 25% with the Sapphire Preferred)

1:1 Point Transfer to Chase Transfer Partners

3x Earning on Dining & Travel Expenditures

No Foreign Transaction Fees

Visa Infinite (a tier above the Visa Signature designation) – [Unconfirmed] The Visa Infinite designation may earn you another $100 credit, this time on a round-trip domestic  itinerary for 2 travellers (similar to the Chase Ritz Carlton credit card)

Oh ya… and the card will also offer a sign-up bonus of 100,000 Chase Ultimate rewards after $4,000 in spending after 3 months!

Yes, you read correctly – 100,000 Chase Ultimate Rewards.

Ok, Chase, you have our attention.

The sign-up bonus is more valuable than the Chase Sapphire Preferred (50k) and more valuable than the Chase Ink Plus (60k). Actually, the 100,000 bonus is just a bit under the combined bonus points earned by these two Chase cards (50,000 + 60,000 =110,000… add another 5,000 for an authorized user on the CSP for a total of 115,000).

I used my 50k Chase Sapphire Preferred bonus to see Amsterdam in style! I can only imagine what I would do with 100k!?

If it holds true, this card offering is nothing short of amazing and will easily top my monthly AYP List of Top Credit cards!

But – there always has to be a “but”, right? – Not all can rejoice. It is the belief of many, including myself, that this Chase card will fall subject to a certain little rule that Chase “unofficially” implemented a few months back – the Chase 5/24 Rule.

The Chase 5/24 Rule – I have referenced this rule in the past (having fell victim to its restrictions twice now), but have not yet explained in detail all that it entails. The Chase 5/24 Rule suggests that if you have opened 5 or more credit cards in the last 24 months, your application will not be approved for a new Chase Card.

This includes:

                Cards from ANY Issuer – from Chase to Amex to Citi and everything in-between

Authorized Users – being added as an authorized user on someone else’s account counts as a new account for you under this rule.

This means that an individual who opened a credit card in October 2014, July 2015, July 2016, and got married and became an authorized on two of his/her spouse’s cards will trigger the Chase 5/24 Rule.

This does not include:

                Most (not all) Business Credit Cards

Other Exceptions – Some have had success being approved for Chase cards despite triggering the Chase 5/24 Rule… Here is how:

Applying through your Chase Banker with a Pre-qualified offer (this did not work in my personal experience with the Chase Ink Plus!)

Disguuise - AYP

Very tough to evade the Chase 5/24 rule… even with a good disguise!

Be a Chase Private Client (N/A for many since last I read this requires something around $250,000 in Chase assets – any Chase Private Clients feel free to chime in!)

Targeted Offers (Some report being approved after applying through a specific offer code that they received either through email, snail mail or through their loyalty/frequent flyer accounts)

So what does the Chase 5/24 Rule mean?

For me: Well, while the Chase 5/24 is not a published rule, Chase seems to be following it pretty darn closely and I have a solid inclination that the 5/24 Rule will be applied to the new Chase Sapphire Reserve card. This means I am out o’ luck…

Wahhhhh - AYP

Bummer…

That said, given the long list of credits ($300 Airline & $100 Global Entry), benefits (like the lounge access) and earning potential (via spending categories), it just may be worth that steep $450 annual fee to upgrade an existing Chase product (like my wife’s Chase Sapphire or Chase freedom) if Chase will allow the upgrade! Especially given the sad (yet inevitable) news that recently hit the Citi Prestige card – my #2 card!

For many of you: This will have little impact, since you probably have not opened more than a couple credit cards in the last few years.

 

Note: There was an application link leak on 8/15 and many people report that they were able to be approved despite being well past the 5/24 rule. There has been no confirmation whether this will be the case on the official launch date of August 21st, but I am crossing my fingers (and toes)!

Final Thought

The Chase Sapphire Reserve card looks amazing. I would love to have one in my wallet.

If you can get this card, do. Do NOT be put off by the annual fee. I promise it will be worth it. If you disagree, email me and we can have a discussion on why you are wrong – and I mean that in the nicest possible way!

While the Chase 5/24 Rule will most likely apply (cross your fingers that it does not – for my sake!), I have a good feeling that most of you will be able to get in on this stellar offer and use it to see the world and achieve your travel dreams!

Keep your eyes peeled for more details and for the [potential] unveiling of this card on or around August 21, 2016!

Happy Travels!

DW

 

9 Comments
  • adventureswithjmk
    Posted at 10:05h, 08 August Reply

    The 5/24 rule is a freaking killer. I get why they did it, but it’s a little too strict (IMO). Though I also read rumors that the Ritz card (also going to be a Visa Infinite card soon) doesn’t qualify for the 5/24 rule, I gotta test that out.

    But the reserve card to me, assuming you can use the $300 on actual flight costs and not just incidentals, is worth it for a year. After that, I think it would be hard to make money off of it.

    Now to decide if I cut back on Credit Card apps for a year-ish to get this card.

  • AcCounting Your Points
    Posted at 10:19h, 08 August Reply

    I am so far away from 5/24, even if I did nothing for a year I am over double. Good call on the Ritz – I also saw that the bonus has increased to 3 Nights at Tier 1-4 (up from 2) with just $1,000 needed for the minimum spend in 90 days ($5,000), so I am seriously considering that…

    Perhaps I can convince one of my family members into a Chase Sapphire Reserve with me as an authorized user. I will pay the annual fees and take them out to a nice steak dinner if I can keep the points and the airline credit!

    Fair trade, right!?

  • adventureswithjmk
    Posted at 10:22h, 08 August Reply

    Ha! Yeah, you got a ways to go then haha.
    That new Ritz sign up bonus is mighty attractive. I have never used points on a Ritz hotel but 3 free nights, I will take it.

    And that’s absolutely a fair trade … haha.

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