American Express Membership Rewards points are some of the best rewards you can earn because they're flexible - you can use them for travel, gift cards, or statement credits, among other things.
Amex cards that earn Membership Rewards include:
Each card offers a unique set of bonuses and benefits depending on how you spend and travel.
While Amex's rewards program has a lot of flexibility, that doesn't mean all redemption options get the same cents per point value.
Let's start with the worst ways to use your Amex points.
Amex has a shopping portal with many products you can buy with Membership Rewards points. While this is a versatile way to use your points, it doesn't have a high redemption value.
For 10,000 points, you'll only get a value of 0.5 CPP— which is not the best value for Amex points.
If you're set on using points for merchandise, you might be better off buying a gift card or going through a shopping partner like Amazon.
Amex has a ton of airline transfer partners that you can transfer your points straight to.
Most partners offer a 1-to-1 transfer rate, so if you transfer 1,000 points to them, they will give you 1,000 points back. Sometimes, American Express runs promotions for transfer partners where you can get a better rate.
One thing to keep in mind here is the Excise Tax Offset Fee.
In most cases, American Express charges an excise fee of 0.06 cents per point (capped at $99 for any single transfer) when you transfer points to U.S. airlines with a card such as The Platinum Card®.
American Express's U.S. airline partners that charge an excise fee include:
On a 100,000-point transfer, that fee equates to $60. In addition to these charges, the airline may also charge taxes and fees.
However, not all partners charge this fee. Some of the airline programs where you can transfer Membership Rewards points without paying any fees include:
Since these are points from airlines outside the United States, American Express won't charge you the Excise Tax Offset fee to transfer points into these programs, although you need to evaluate their value (Note: some of them are hard to redeem points from). Transferring points to their hotel partners will also be free of charge.
Unfortunately, the only way to transfer points to your Delta SkyMiles account is through AMEX, so be prepared to pay the fee to utilize them.
To get the best redemption rates, you need to do a lot of research before you transfer your points.
If you don't want to pay your card bill, you can redeem your points for statement credits, effectively wiping out any purchases you made with the card. While this option is handy, it also isn't recommended.
However, if you're in a pinch, this can help.
It's best used as a last resort if you need some last-minute funds to cover your balance. But each point will only be worth 0.6 CPP. So the low value makes it not a great option.
We'll talk about other setups later in this post if you're after cash.
With JustGiving, you can donate your points to over 1.5 million charities. Unless you can redeem your points for travel, you'll likely get no more than 0.7 cents per point from this redemption option.
The points aren't the greatest value for your money, but if you don't need your points, this is a decent option.
Beware of the value change, though. Depending on the organization, the value of your points may vary, so pay attention.
Doing the math can help you make a bigger impact.
With American Express Travel, you can book all kinds of travel, including hotels, vacation packages, and cruises.
If you book travel through the American Express Travel portal (excluding airfare), you will only earn 0.7 CPP. In addition, considering other companies will give you 1 CPP, booking your travel using the Amex Travel portal may not be the best way to spend your Amex points.
Keep in mind that using the Amex Travel Portal is NOT the same as using a transfer partner.
Similar to option 1, you can use your points to spend with certain merchants.
The cents per point come out to 0.7 mostly, except for NYC Taxis and Ticketmaster.com. Those have different point-to-cent ratios, so check the redemption rate before redeeming, as redemption rates may vary from retailer to retailer.
You also need to be careful because some platforms like Amazon can automatically fill in that you're using M.R. points when you check out.
If you want to use your points for shopping, there are probably better options in this list.
This option is new for 2022.
If you have a business checking account with Amex, you can redeem your points for cash. You'll get 0.8 CPP, so 10,000 points would come out to $800. These points are considered rebates instead of income, so you're not taxed on them.
So if you have a lot of points, cashing out your business checking account through your Business Platinum might be a better option. (More about this below)
Gift cards come in different types, and your redemption value varies. Then again, there are many 1 CPP options with less variance, which is not too bad.
It may not be the best redemption method for your Amex points because it has additional hoops to jump through.
With Upgrade with Points, you can bid on seat upgrades at over 20 participating airlines using your Membership Rewards points. This is a convenient option if you are worried about cramped seats on long flights.
It might make more sense to upgrade your seat with the actual card and earn more points because there are higher-value options to redeem your points. However, membership rewards here are worth at least 1 CPP depending on how you use them.
If you value your seat on the plane, you might like this option.
This is a great option for the avid traveler.
Compared to other companies, you can get a decent rate on your points. You can expect to redeem 1 CPP with flights and hotels if you book it through the Amex Portal.
But if you have the Chase Sapphire Reserve, you could get 1.5 CPP when you book through their own portal.
With this option, you can get an elevated value for your points, whether it is flights, and pay yourself back.
This is a better option than the 7th option mentioned above.
Instead of $800 per 100,000 points, you can get a better rate of 1 CPP. That comes out to $1,000 per 100,000 points. You must have the Amex Business Platinum card, though.
If you run a large business, that might be enough to offset the annual fee, but you still need to do the math.
If you own a Morgan Stanley brokerage account, this might be useful.
It's similar to a business checking account using your business platinum but on a more personal card side.
If you own the Platinum Card from American Express Morgan Stanley edition, you can cash out your points to your brokerage account at 1 CPP.
The points can be cashed out anywhere once they reach your brokerage account.
Though, you might want to consider these things first before you use this option:
I made a blog post about this before and how to waive the annual fee. You can learn more about it here: https://www.asksebby.com/guides/waive-amex-platinum-annual-fee
You can transfer M.R. points at 1.1 CPP to your brokerage account with the Platinum Card from American Express Charles Schwab. So if you're looking to redeem for cash, this might be the best option.
However, as with any other Amex Platinum cards, there are a few things you need to consider:
If you have a Business Gold, you can get a 25% rebate when you book an eligible flight.
So, if you use 100,000 points to cover a $1,000 flight, you'll get 25,000 points back. That means you used only 75,000 points for a $1,000 purchase, which works out to a rate of 1.33 CPP.
The maximum rebate is 250,000 points, so you wouldn't want to redeem more than 1 million.
Platinum Business cardholders can redeem M.R. points for travel and get a 35% rebate when they use their card for either first class or business class travel or flights with the airline of their choice (via the travel incidental credit).
That means if you spend 100,000 points for a $1,000 flight, you'll get 35,000 points back. Considering the 35% points rebate, the effective value is 1.54 CPP.
This is your best bet if you're looking for a simple travel redemption. The maximum rebate here is 1 million points per year, so you wouldn't want to redeem more than 2.85 million.
This is the same for the two previous options, but even better!
You can redeem your points with Business Centurion for a 50% rebate. As you know, spending 100,000 points for a $1,000 flight would get you 50,000 points back.
With the rebate, you can effectively get 2 CPP, the highest rate we've discussed.
On top of that, there is no maximum rebate. However, the personal Centurion card does not offer flight rebates.
Finally, you can transfer your points to American Express airline and hotel partners.
The rate here can be up to 10 CPP, but it can generally fluctuate or come out to about 2 or 3 CPP when you get through all the transferring. There are a lot of nuances to this one.
But for avid travelers, this might be a decent option for you.
American Express points can be redeemed in many ways, so it's important to know which one gives you the most value.
While you can use them for merchandise or shopping with Amazon, they don't provide good value.
Most people will get the best value from their points by transferring them to airline or hotel partners or using your Amex business card.
Watch this video to find out how to get the most out of your Amex points:
Starting May 31, 2020, Chase added a new temporary benefit for Chase Sapphire Preferred® Card and Chase Sapphire Reserve® members to “Pay Yourself Back.”
Note: The “Pay Yourself Back” feature is not available to the no annual fee Chase Sapphire card.
The Pay Yourself Back Program lets Chase Sapphire Preferred and Sapphire Reserve cardholders redeem Ultimate Rewards to offset select category purchases at a favorable rate.
Pay Yourself Back Categories:
The current promotion is valid through September 30, 2020, but it’s possible that it may be extended due to uncertain times.
[ March 30 Update ] Pay Yourself Back is extended until Sept 30, 2021.
Sign into your online Chase account and navigate to the Ultimate Rewards tab located on the bottom of the left column.
Select the card you’d like to access. If you have multiple Ultimate Reward earning cards, you can choose to pool points to the Sapphire card to redeem.
In our example, we choose the Chase Sapphire Reserve.
Navigate to the left hand column and select the “Pay Yourself Back” menu item. Clicking the main promotional banner also works, as seen in the screenshot below.
The current categories for pay yourself back are: restaurant and grocery stores (including take out and eligible delivery services), home improvement stores, and select charitable organizations.
After each purChase posts, you have 90 days to pay yourself back. Check the respective box to select the purChase.
Enter the dollar amount you’d like to receive as a statement credit by using some or all of your available Ultimate Rewards points. The Chase Sapphire Preferred redemption rate is 1.25 cents per point, and the Sapphire Reserve is 1.50 cents per point.
After setting the cash value, click “Confirm & Submit” to redeem!
One of the main benefits of Chase Ultimate Rewards points is that you can transfer them out to partners if you have the Chase Sapphire Preferred, Chase Sapphire Reserve, or the Chase Ink Preferred.
You can view credit card offers by going to the "Credit Card Offers" tab. Find offers for the respective cards in "Travel Rewards Credit Cards" and "Business Credit Cards." You don't have to use our links, but we're grateful when you do. Thank you for supporting AskSebby!
Chase Ultimate Rewards transfer at a rate of 1:1. On average, you can get up to two cents per point when you use transfer partners.
If you're looking for the most value possible, then airline partners are the way to go for first class redemption. This also works well for last minute flights.
The way I redeem points for "best value" is hotels because everyone in your travel group can benefit.
For example, if I transfer my Ultimate Rewards points to United:
On the other hand, if I transferred my Ultimate Rewards points to Hyatt:
For the cost of a round trip United Polaris flight to Asia, I can get four nights at a top tier Hyatt property.
Examples:
IHG is not an ideal transfer partner because of the cost of the points, and you typically need more points for a redemption.
In my experience, Hyatt has the best redemption value for transfer partners. The Category 1 Hyatt properties start at 5,000 Hyatt points.
Category 1 = 5,000 Hyatt points / 5,000 Chase UR points
Check out the video below for more redemption ideas.
American Express has a wide variety of credit cards, co-branded credit cards, and charge cards.
One rule to be aware of is that American Express has a once in a lifetime rule, so if you receive a welcome offer for a card, you will not be eligible for another welcome offer for the same card again.
Regarding upgrade and product change options, I don’t recommend taking an upgrade offer unless you have previously received a welcome offer for the same card. Taking an upgrade offer first would disqualify you from receiving the welcome offer for the same product.
For example, if you currently have the Amex Gold card and you receive an upgrade offer to the Amex Platinum card (and you accept it), you will not be eligible for the Amex Platinum welcome offer. However, if you receive a welcome offer for the Amex Platinum first, you will also be eligible for the upgrade offer.
Some people might product change a card if they’re not getting positive expected value from an annual fee.
Downgrading a card is ideal to keep your credit history alive since you’re not canceling the card. I usually recommend doing this after having the card for 12 months if you’re not getting positive expected value in the second year to keep a good relationship with American Express.
If you cancel or product change a card before the first year, Amex has the right to claw back the welcome offer for “abusing the system.”
Watch the video below for an overview of product change options:
Bank of America is tightening the rules on their credit cards. In addition to the 2/3/4 rule, two new ones regarding signup bonuses were recently introduced.
There are two levels to the rule:
24 MONTH RULE: LEVEL 1
“This [card] will not be available to you if you currently have [card] UNLESS you have had that [card] for at least 24 months.”
TLDR: You can’t get the same card if you have had the product for less than 24 months. It seems to imply that you can have multiple of the same card, but you just have to wait 24 months before adding another one.
24 MONTH RULE: LEVEL 2
“This [card] will not be available to you if you currently have or have had a [card] in the preceding 24 month period.”
TLDR: You can’t get the same card if currently have or had it for less than 24 months.
Here is a chart that outlines the Bank of America products and which level of the 24-month rule applies to it: https://bit.ly/3JyD1Wx
Cards with “N/A” next it means that the 24-month rule was not found in the terms and conditions of the card.
It seems like business cards are not currently affected by the 24-month rule, along with some co-branded cards.
We recently took a trip to the Canadian Rockies in September. People often ask me how I plan my trips, so this is a step-by-step guide on how we planned our trip to Banff.
One of the main reasons why we wanted to take this trip is because Parks Canada is offering free admission to their national parks for their 150th anniversary.
1. Hotels
2. Flights from SFO to Calgary
3. Car rental
I signed up for the Chase Fairmont card earlier this year for the two free night certificates. The card was discontinued in August.
Peak season rates for the Fairmont Lake Louise is usually $1099 CAD/night.
To book reservations using the Fairmont certificates, we had to call the reservation line on the back of the card. They don't have an online system, so the representative has to manually look through different dates.
On our first attempt, there were no consecutive dates available for Lake Louise. After doing some more research, we realized it was better to stay in Banff Springs because there are more attractions near the hotel.
We called a few weeks later and were able to secure two consecutive nights in September for Banff Springs. Another benefit was that we could use the suite upgrade certificate with the booking.
Bottomline, try calling the reservation line several times over the span of a few weeks to check for availability.
For the remaining hotel nights outside of the Fairmont certificates, I booked using Hotels.com. My goal was to spend less than $100 for hotels in Calgary. I booked the Marriott in downtown Calgary two weeks before the trip and found a deal for $97/night.
Pro-tip: Hotels.com has a 10% discount if you book using a mobile phone.
On the last night, we were supposed to drive back to Calgary, but we wanted to spend more time in Banff, so we canceled the hotel reservation. I booked a last minute hotel reservation at the Juniper Hotel in Banff and used my Hotels.com free night since I accumulated 10 stays.
The free night is equivalent to 10% of all your hotel.com stays, so my free night certificate was worth $119.77. I still had out of pocket costs to pay, which came out to be $68.65.
To book flights, I set up a Google Flights notification for deal alerts. I routinely check for flights on Tuesdays because that tends to be the cheapest day to book a flight.
Pro-tip: if you're planning multiple trips at the same time, set up a folder in your bookmarks bar to stay organized.
Flights to Calgary from SFO usually range from $350-$550, but we wanted to wait for a deal. We kept an eye out on Scott's Cheap Flights for a price drop. Luckily, a few weeks later, there was a deal alert.
The great thing about booking through the Chase Travel Portal is that discounted fares are also reflected. I used the Chase Sapphire Reserve and spent 15,872 UR points on a roundtrip ticket.
We booked a rental car using the Costco Travel Portal. From my experience, they usually have the cheapest rates and offer free upgrades or additional discounts at select locations.
I usually don't check anywhere else for rental cars unless the Costco rates are absurd. Since reservations are free to cancel, I typically make one at least a month in advance and then check what the prices are closer to the travel date.
Pro-tip: If you have to wait more than 20 minutes for a car, that usually means the rental agency ran out of cars, or they're slowly cleaning returns. Ask the agent nicely if they can do anything for you for the inconvenience, i.e., discount or free upgrades.
We waited an hour for the rental car, and the agent took off a day of rental and gave us a free tank of gas.
Here's the breakdown of the cards we used to book the trip:
Bank of America is enforcing new rules on credit card applications. H/t Doctor of Credit.
*months considered on a rolling basis
For example, if you apply for a card on August 1, 2017, that's considered card #1. If you apply for another card on September 1, 2017, then that's card #2.
If you try to apply for another card from September 2-30, then it will result in an automatic rejection because of the "2 cards in 2 months" rule.
If you apply on October 1, 2017 (or afterward), then the application will pass the "2 cards in 2 months" rule, but it's still subject to the "3 in 12 months" and "4 in 24 months" rules.
When the application is "approved in error," the card won't show up on your credit report.
Bank of America's rules doesn't seem too bad compared to other banks. The rules only apply to Bank of America branded cards. Once you factor in Bank of America's card selection, most people won't have to worry about the rules because they don't have the best travel credit cards.
Note: Some of the offers/products mentioned below are no longer available.
If you’re like me and you have more than 10 credit cards, it can take up a lot of mental bandwidth. Remembering to use travel credits, minimum spend dates, and free anniversary nights can get confusing, especially if you have more than one premium travel card.
We created a spreadsheet to help you track the welcome bonus, statement dates, and travel credits for your cards.
Download a copy of the tracker here: http://bit.ly/2TLM4tF
The tracker currently has sample data in it, so feel free to fill in your own cards and dates.
The main sheet contains the primary tracker and the second sheet that says “Amex Gold” is an example of how to keep track of spending for a specific card.
In the “Amex Gold” sheet, I copy and pasted the line items from my credit card statement and to calculate how much spend was on the card. The “yes” represents spend I intend to keep, and the blank lines indicate that I might return the item. This total spend amount is also reflected on the “main” sheet under the column “spend confirmed.”
Feel free to create different sheets for each of the cards you have to keep track of minimum spend.
Most cards typically have a three month period to spend a certain amount to earn the welcome bonus. It’s safe to assume that the clock starts on the day you apply, and not the day you’re approved or receive the physical card.
If you have any doubts, be sure to send the bank a message to confirm the dates.
For cards that have annual fees, I wouldn’t count the annual fee or travel credits towards minimum spend. It would be unfortunate not to earn the bonus by a few hundred dollars.
If you’re someone who doesn’t like using auto-pay, then the payments section is ideal to keep track of all the card statement dates.
Pro-tip: I recommend changing all your card statements to close on the same date to keep it simple. I usually change my statements to be issued on the 1st / 2nd or 15th / 16th.
For example, you can send a secured message and request that all your Chase card statements close on the first of the month.
If you have multiple cards that offer a free night, it’s ideal to note the certificate expiration dates, so you don’t accidentally miss out.
Under the details, you can note the maximum point or category rewards the certificates can be redeemed for.
The “Days Left” column will get more green as the expiration date nears as a reminder to use the certificates.
Most premium travel cards come with some travel credit. Under “Credit Type” you can list if it’s a hotel resort credit, airline fee credit, or any other type.
Any other credits like the $100 Global Entry credit can be listed under “Other Credit.”
Watch the video below for complete instructions on how to use the tracker.
One of the most frequently asked questions I get is, "Why do you have multiple of the same credit card?" In this post, we'll cover which cards you can have multiples of, the general policies, and the cards I have.
Yes, depending on the credit issuer. With most major issuers, it's possible to hold two of the same credit card. The main issue is HOW you obtain multiple of these cards.
In most cases, you'll need to product change a card to hold two of the same credit card.
Important: You do NOT receive an intro bonus when you product change a card.
For example, if you product change a Chase Sapphire Preferred® Card to a Chase Sapphire Reserve®, you do not receive a bonus for the Chase Sapphire Reserve.
Some people obtain a second Chase Freedom Flex℠ card from getting the Chase Sapphire Preferred and product changing the card after the first year. You will not receive an intro bonus for the second Chase Freedom Flex.
For some credit issuers, if you currently have the card, you cannot apply for the same card. The application will automatically get rejected. Always check the card offer details and terms for the most accurate information.
Bank of America is more flexible with having multiple cards, but restrictions do apply for select products. You can have multiple Better Balance Rewards and Cash Rewards cards.
Be sure to read the Bank of America card application rules post to see if you qualify to apply for additional cards: https://www.asksebby.com/blog/bank-of-america-adds-24-month-rule-to-some-credit-cards
For example, the Bank of America Alaska card is not available to you if you currently have or have had the card in the past 24 months.
One product that is no longer available is the Better Balance Rewards card. The system allowed me to apply for multiple at the same time, and they were approved. However, Bank of America did close two of the accounts after enforcing their new application rules.
American Express lets you apply for the same product, but you will not receive the intro bonus again due to the "once in a lifetime" rule.
I don't recommend submitting multiple applications all at once; otherwise, the system may view them as duplicate applications and automatically reject them. Space the applications out by a few months.
Keep in mind that applying for a card is different from upgrading a card. When you upgrade a card, there are often upgrade offers after you spend "x" amount in "x" months.
I only recommend doing the product change if you currently have or had the card for the intro bonus in the past, otherwise, you might not qualify in the future.
Watch the video below for the Amex product change strategies.
Chase allows you to earn an intro bonus for a product once every two years, except for the Sapphire cards, which are once every four years.
However, it is possible to product change to a card you already have.
Reminder: You do NOT receive an intro bonus when you product change.
For example, you can sign up for a Chase Freedom card and earn an intro bonus. If you also have a Chase Sapphire Preferred that you no longer get positive expected value from, you can product change the Sapphire to a second Chase Freedom card.
There are two main reasons for why I have multiple of the same credit card:
Rotating category cards are some of my favorite cards to have duplicates. For example, the Chase Freedom Flex card earns 5% on up to $1,500 in combined category purchases each quarter you activate.
There are some categories that I can easily maximize, so having a secondary card helps me earn more points.
Another example is the Ink Business Cash® Credit Card that earns 5% cash back on the first $25,000 in combined purchases on office supply stores; internet, cable, and phone services.
Some office managers who carry the Ink Business Cash® Credit Card can easily maximize the $25,000 in combined category spend each year. Having a secondary Ink Business Cash® Credit Card would help earn points faster.
You can product change the Ink Business Preferred® Credit Card or Ink Business Unlimited® Credit Card to a secondary Ink Business Cash® Credit Card. Business cards can only be changed to business products, and not personal cards.
The second group of cards is ones that have annual fees, but you don't need to spend a lot on the card to derive positive expected value.
The best example is the Amex Hilton Aspire that has a $450 annual fee and comes with a free weekend certificate and resort credits. Since I can redeem the free weekend certificate at high-value properties, I derive more than $450 in value each year.
The automatic Diamond status has also saved me hundreds of dollars on breakfast and executive lounge access.
Your mileage may vary depending on where you plan to redeem the free weekend night. I currently hold two Amex Hilton Aspire cards.
Having multiple of the same credit card isn’t for everyone. I wouldn’t recommend it unless you have a specific use case like maximizing spend categories or utilizing travel benefits.
What leads to an American Express financial review? I've talked about my experience with a financial review in the past.
A financial review is a risk minimization tactic by Amex to make sure you don't max out your cards and run away. Their goal is that you don't default on payments by having too much debt and not pay it off.
When you're under financial review, they'll freeze all of your accounts, and you'll need to send in documents about your income. They will request tax returns and bank statements. What they're looking for is to make sure the income you reported on the application is true.
The process typically takes 2-3 weeks, and you're assigned a specialist to talk to. Even if you contact customer service, you will not be able to talk to anyone except for the specialist.
If you don't send in the requested information, they will shut down all of your accounts. Even if you're worried about failing the review, you should still send in the documentation because they're going to either shut down the accounts or set a lower credit limit.
If you click the "spending power" button more than three times a day, it will trigger a financial review. The idea is if you have a big purChase coming up, you can check if the transaction will be approved.
For me, this is what triggered a review. I entered $20,000 and then $30,000 and $50,000. Surprisingly, they all said it would be approved. On Amex's side, this raised a red flag because I just received my charge card.
The lesson here is: Don't play with the "Spending Power" button.
I think this is reasonable to prevent fraudulent transactions. One thing to be careful of is if you're hitting minimum spend. For example, if you're approved for a card, and you have a $10,000 credit limit, if you spend $5,000 in the first three days, it will raise a red flag. This equates to $2,500 a day, so they're going to assume this is normal behavior since they don't have spending history on your new card.
If you take the $2,500 and multiply it by 365 days, you get a figure close to $1 million dollars. This is concerning to Amex, especially if the income you reported isn't close to $1 million.
If you have more than $25,000 credit limit on a credit card or a combined credit limit of $35,000, it will trigger a financial review.
Amex allows you to link a bank account to pay your statement balance. If you don't have a balance in your bank account to pay the balance, it will result in a return payment.
The final factor that leads to a financial review is if you change your income numbers too drastically. For example, if you apply with a $100,000 salary, and one year later, you have a $150,000 annual salary.
Amex may want to see proof of the salary increase in the form of a pay stub or tax return.
There are three possible outcomes to the financial review process:
1. Pass, everything checks out, and no further action is needed.
2. Pass, but they will decrease your credit limits.
3. Fail, they will close all your accounts.
To start off with, I'm not taking any sides. My goal is to make you aware of the rules and actions that can lead to a shutdown. I'm going to list a bunch of items, and for you, some of these actions may seem reasonable, but Chase is within its right to cancel their relationship with you. This is called a non-satisfactory relationship.
When a non-satisfactory relationship occurs, all of your cards and accounts are closed. Chase will typically mail you a check for the balance in your account.
After this happens, some people may be able to reopen accounts after a few years. In certain circumstances, they will send a message saying you're rejected because of a previous non-satisfactory relationship.
For most people reading this blog, you'll be fine unless you're doing something shady/illegal. Most shutdowns happen because they're seeing unusual transactions and seen as "risky."
With that said, let's run through the list.
Easy examples of this are gambling, adult films, as well as Bitcoin. Back in 2014, there were a few producers that worked in the adult industry and had their accounts shut down because of it.
On the Bitcoin and cryptocurrency side, especially if you're using Coinbase, my recommendation is to link it to another account that's not Chase.
If you're someone who has large international wires, then I would avoid using Chase because it usually triggers a financial review that can lead to a shutdown. For Chase Private Clients, maybe that changes, but for normal people, it's seen as risky behavior.
The problem with money orders is the money isn't traceable. Banks get concerned when they don't know where the money is coming from. Their biggest concern is that the money is being obtained illegally.
On the other end of the spectrum, buying a lot of Visa gift cards with your credit cards can flag your account. The main problem is that Visa gift cards are a cash equivalent, meaning you can turn it into cash if you wanted to. When you buy store branded gift cards, it's harder to liquidate.
Some credit cards know when you're buying gift cards because they receive level 3 data, meaning they can see what you're buying. A Scenario where you might want to buy store-branded gift cards is if you're close to hitting minimum spend, and you don't have any other way. Here, you can buy a gift card on Amazon if you know you're going to use it in the future.
If you're someone who's new to credit and you apply for a lot of Chase cards in a short amount of time, this may trigger a shutdown. For example, if you received your first credit card three months ago, and you apply for 6 Chase cards in the next six months, it raises a red flag.
The way to lower the risk profile is to lower your credit limits. Again, you're seen as risky because you have a thin credit profile with a ton of credit.
I'm not sure why, but after your third or fourth Chase card, they start to give you high credit limits.
Another thing that may cause a shutdown is if you do credit piggybacking. This is when you add people to your credit cards as an authorized user when they don't have a purpose of being there. The person typically isn't a family member or in the same household.
The main thing Chase is concerned about is you're selling your credit cards as a service to help them improve their credit.
If you do want to help your significant other out, I think that's reasonable. Just be sure the mailing address is the same household.
This is obvious, but suing Chase is a bad idea. On the other hand, suing someone else is seen as a reputational risk because it can affect their other relationships with other companies.
Large cash deposits are also a red flag because it leaves them wondering about the source of the money. The benefit of a check or a wire is that they can track the origin or the money. With cash, they don't know.
Selling your UR points can trigger a shutdown. If you do want to transfer your points to family members, ideally they live in the same household and have the same last name.
If you review the list, most of the actions can be avoided. The only ones that can't are the reputational risk — so if you work in an industry they don't approve of, or if you end up suing someone they don't approve.
My recommendation is to be cautious of your transactions and try to see it from the bank's point of view.
American Express offers a wide range of charge cards and credit cards. Charge cards technically don't have a set spending limit, and you must pay them in full each month. Credit cards can be core Amex cards or co-branded cards, and you can carry a balance (although we do frown upon that; pay your cards off each month).
I recommend getting an American Express card AFTER you've finished obtaining all the Chase credit cards on your wish list due to the 5/24 rule. By the time you finish with Chase cards, you should have a solid credit foundation that will let you apply for premium cards.
People who are not currently American Express members have a higher likelihood to get targeted for increased signup bonuses like the 100,000 point Amex Platinum offer via CardMatch.
My first Amex card was the Amex EveryDay card, and I regret not going for the Amex Platinum first since I lost out on the additional 40,000 points.
Amex Platinum (as of 2018)
You can be targeted for the 100k offer via CardMatch even if you're already a customer, just less likely.
The following is my credit journey recommendation. American Express falls into step 4: choose your own adventure.
1. Student or secured (Card #1)
[let age for 12 months]
2. Chase Freedom/CFU (#2)
[let age for 1-3 months]
3. Finish off 5/24 (#3-5)
4. "Chose your own adventure"
Membership Rewards points can be worth 0.6-2.0+ cents per point (CPP) depending on how you redeem them.
Redeeming MR points:
The main questions you need to ask yourself are:
1. Do you travel?
2. Do you want the Amex Plat Schwab?
The Charles Schwab Amex Platinum lets you redeem MR points for cash back at a rate of 1.25 CPP.
If you miss out on the 100k Amex Platinum offer, how much is the opportunity cost worth?
40k MR opportunity cost
a) Cash back
b) Travel (low)
c) Travel (high)
At a minimum, you're missing out on $400 in opportunity cost. If you utilize transfer partners for travel, you could miss out on $800.
The short answer is no. I've seen plenty of people get approved for the Amex Platinum as their first Amex card.
The main question you need to ask is if one hard inquiry is worth $400 to $800?
Maybe if you're mortgage hunting, in which case you should already have a minimum card base of 3-5 cards set up.
In some cases, it might make sense for to get the Amex EveryDay card. Amex EveryDay is great for:
The exception for not getting the Amex Platinum first is if you fly on Delta often or you stay at Hilton properties often.
Exceptions list:
1. Amex Delta Gold
2. Amex Hilton Ascend
Have you ever applied for a credit card online and didn't instantly get approved? The first thing you need to check is if you were rejected or if they're still making a decision by calling the reconsideration line. A lot of people who aren't automatically approved assume they've been rejected.
If you're not instantly approved for a card, call the automated status line immediately to check the status of your application. The number may change in the future. h/t Doctor of Credit for the most updated list of recon numbers.
Reconsideration line phone number: 888-270-2127
Once you make the call, they're going to give you a message. If it says they'll let you know within 30 days, it means Chase has not processed the application yet. However, if the message says two weeks, this typically means you're approved. If it says 7-10 days, then it typically means you were rejected for the card.
Important note: these are based on phone messages and not email communication.
If you have the 7-10 day message, this likely means you were rejected. You can either wait for a letter or immediately call the reconsideration line to see if they will approve you. Before calling the reconsideration line, there are two rules you need to be aware of:
1. Chase 5/24 - if you opened more than five credit card accounts within the past 24 months, you'll automatically be rejected.
2. Chase 2/30 - if you have more than two applications within the past 30 days, Chase will not approve you.
When you call the reconsideration line, you're trying to convince the person on the other line to approve the application. You're usually speaking to a credit analyst, so be sure to call during business hours. These calls can vary drastically depending on what your credit profile looks like.
For example, my friend called the reconsideration line after applying for two Southwest credit cards on the same day and had to explain that they were aiming for Companion Pass. After explaining why they wanted the card, the analyst approved the card.
Again, depending on the specific reason the application is under review, your mileage may vary.
Another scenario is that Chase typically issues a total credit limit equivalent to half of your income. You may have to reallocate or lower the credit limits on some cards to get approved for a new card.
If you go through the reconsideration process and they still don't approve you, it might be worth hanging up and trying again a few hours or days later.
One other factor to consider is that if you are relatively new to credit, it's hard to get approved for travel cards like the Chase Sapphire Preferred or the Chase Sapphire Reserve. If you get rejected, the strategy would be to build a relationship with Chase by getting a Chase Freedom for 3-9 months before applying for a higher tier card.
