Credit card Tips

Chase Personal Credit Card Prerequisites

Chase Bank has one of the most valuable points system with their Ultimate Rewards Program where each point at a minimum is worth 1.5 cents (1.5CPP) and on average 2 cents (>2CPP). Hence it’s important to plan your card portfolio in a way you maximize your points earning potential which may be redeemed towards future “free” travel.

What do you mean by Personal Cards?

Credit cards used for everyday personal expenses are classified as personal cards. So transactions made at grocery stores, at restaurants, etc.. (non-business related) are hence categorized as personal transactions.

Different credit cards on table, closeup

Personal credit card scoring factors affect your FICO score unlike business cards where they do not affect your personal score.

What are the Chase Application Rules?

Chase 5/24 Rule

As per Chase’s card holder policies, your application to any Chase Credit Card (personal or business) will be automatically rejected if you’ve opened more than 5 Personal Card accounts in the past 24 months.

Business credit cards do not count towards your 5/24 count but charge cards like the ones offered by AMEX: Gold, Platinum and Green do.

Hence, it;s important to plan your credit card applications in a way to maximize your benefits from Chase Bank before which you get locked out for 24 months.

Sign-up Bonus Rule

Chase has recently become strict on it’s sign-up bonus rules and for its sapphire cards, you are applicable to a sign-up bonus once every 48 months.

For their Freedom cards, I believe the time frame is once every 24 months.

Similar Cards Rule

One account holder is only allowed one Sapphire card ownership at a time. You may not apply and be approved for both the Preferred or Reserve Card.

You may however own more than one freedom card: Freedom or the Freedom Unlimited. If you opened a Freedom card today as well as one of the Sapphire cards, you may downgrade you Sapphire card to another freedom card after year one if you do not wish to keep paying the annual fee or get a retention offer.

Prerequisites to get started with Chase?

Over the past few years, Chase has become rather strict and picky with who they approve and how. So its very rare to be approved for a Chase card if it is going to be your first ever credit card unless you’ve had history with them with either a Checking or Savings Account (Learn more on how to get $350 credit on opening an account).

From most data points I have come across, they require to you have atleast 12 months of credit history with an overall credit score of 720+, utilization under 20% and no negative remarks on file to be approved.

Learn more on how to improve your credit score here if you’re thinking of applying soon.

The parameters I just mentioned aren’t set in stone – they’re just what I have seen across most of my readers who were either approved or rejected.

I recommend most people start with Discover IT as their first credit card just because it’s easy to get approved for and their first year cashback match effectively guarantees you 10% back on qualifying purchases and 2% otherwise.

The American Express Blue Cash (for cashback) or Everyday Card (for points) are the next best alternatives.

To keep the articles short, I’ll cover what cards to get and why so that you can make the best decision for yourself in my next article. If you aren’t already, go ahead and follow the website to be updated when the next part comes out.

1 comment on “Chase Personal Credit Card Prerequisites

  1. Pingback: The Credit Traveler | Why did I downgrade my Chase Sapphire Reserve?

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