A few bloggers have dropped hints recently about new credit card offers coming our way. They had met with some of the top banks to discuss credit card offers, but had apparently promised not to divulge the secrets. Luckily, I’ve made no such promise to anyone, so I feel free to speculate…
Million Mile Secrets
In June, Daraius, from Million Mile Secrets, wrote about “Visiting the Banks in New York”. In that post, he gave some hints as to what we should expect regarding credit card offers. First, he told us about general trends we will see:
We’re also going to see offers which require higher spending to get the full sign-on bonus (think Chase British Airways & Chase Ink Bold), offers which require you to hold the card for a second year (think 60,000 point Citi Thank You Premier), limited time offers to persuade folks to sign-up immediately (AMEX Business Gold and Platinum), and cards which offer a benefit which makes the card worth keeping after the 1st year (think free bags or free hotel nights with certain cards).
Then, he dropped a couple of bomb-shells:
There may be a new business credit card (as opposed to their current charge card) coming out soon in Q3 (July to September) with a decent sign-on bonus from a bank which offers the boldest business cards in the market.
If a credit card had a history of increasing the sign-up bonuses during a certain period, that pattern may be repeated again – as early as this summer.
Frugal Travel Guy
Yesterday, Rick (Frugal Travel Guy) reported the following:
I have it from a reliable “inside source”, we can look for a new product in the portion of the frequent flyer game where I earn the majority of my miles. It is to be announced in about two weeks. I promised that is all I would say, but I think we will all be pleased.
Frequent Miler’s Take
I have no inside information about this at all. In fact, I’ve avoided asking Daraius or Rick any follow-up questions because they probably would have asked me to keep the answers quiet (if they told me anything). So, now I’m free to tell you what I think is on it’s way. Time will prove me right or wrong:
New Ink Bold!
The Ink Bold is technically a charge card instead of a credit card. It seems clear to me from Daraius’ post that Chase will be introducing a credit card version of the Ink Bold! Why am I excited? Last time Chase introduced a change to the Ink Bold, they treated it as a new product. That meant anyone who signed up for the new product was eligible for the sign-up bonus even if they had received the sign-up bonus before (for the old product). Personally, I’ve received 110,000 Ultimate Rewards points from two Ink Bold sign-ups!
- Timing: Daraius reported that the new card would come out in Q3 (July to September). Rick reported tat a new product would be announced in about two weeks. Was Rick talking about the same product? My guess is yes. I’m guessing we’ll see the new card around July 30 or so.
- What to do: If you already have an Ink Bold (the one with 5X categories), then just wait to see what happens. If you don’t yet have the Ink Bold (or you have an old non-5X version), then I’d recommend signing up before the new card appears. We don’t know if Chase will continue to offer the current charge card, or if they’ll replace it entirely with the new card. If the latter, this could be your last chance to get the current signup bonus and the new one. The other reason to sign-up now is that we don’t know if Chase will continue the 5X categories with the new card. I expect that they will, but only time will tell. For tips on how to sign-up for the Ink Bold (and whether you qualify for it), see “How to sign up for the Ink Bold”. I will also soon write-up some great techniques for meeting Ink Bold minimum spend.
Increased SPG Bonus
Last year, in late July and through most of August, Amex increased the usual signup bonus for the SPG (Starwood Preferred Guest) card from 25K to 30K. I think Daraius’ comment about a summer promotion being repeated is this one. It may not sound like a huge bump, but SPG points are really valuable so it’s pretty exciting to me. If this happens and you signup for both the business and personal versions of the card, you will earn 60,000 SPG points. When you add in points earned when using the card, it won’t be long before you can take an all expense paid vacation with a redemption like Starwood’s Night’s and Flights. With this option, you can redeem 60,000 Starpoints to get 5 nights in a category 3 hotel and you’ll get 50,000 airline miles to cover your flight! Or, redeem 70,000 Starpoints for 5 nights in a category 4 hotel and 50,000 miles. This is just one example of the many great redemption options available through SPG.
What do you think?
Do you have any guesses as to what’s coming? Did I guess right? Daraius? Rick? Others? Feel free to comment below.
|Chase's 5/24 Rule: With most Chase credit cards, Chase will not approve your application if you have opened 5 or more cards with any bank in the past 24 months. Some exceptions that are NOT subject to the 5/24 rule include: British Airways, Hyatt, IHG, Marriott Business, and Ritz Carlton.
To determine your 5/24 status, see: 3 Easy Ways to Count Your 5/24 Status.
|Chase 5/24 semantics ("Subject to" vs. "Count towards"): Most (but not all) Chase cards are subject to the 5/24 rule. That means the rule is enforced in making approval decisions. In other words, you probably won't get approved if your credit report shows that you opened 5 or more cards in the past 24 months. Meanwhile, most business cards (such as those from Chase, Amex, Barclaycard, BOA, Citi, US Bank, and Wells Fargo) are not reported on your personal credit report. These cards do not count towards 5/24.
Chase IHG Card is not subject to 5/24 so it's easy to get. But after approval it will count towards your 5/24 total.
Chase Ink Business Preferred is subject to 5/24, so you likely won't get approved if over 5/24. If you do get approved, it won't count towards 5/24 since it won't appear as an account on your credit report.
|Amex 5 credit card limit: If you apply for a new Amex credit card, you may get turned down if you already have 5 or more Amex credit cards. Both personal and business cards are counted towards this limit. Charge cards, though, are not counted. You can apparently get as many charge cards as you’d like, and the number of charge cards you have does not affect your ability to get up to 5 credit cards. Authorized user cards are also not counted towards the 5 credit card limit. See also: Which Amex Cards are Charge Cards vs. Credit Cards?|
|Applying for Business Credit Cards
Yes, you have a business: In order to sign up for a business credit card, you must have a business. That said, it's common for people to have businesses without realizing it. If you sell items on eBay, for example, then you have a business. Similar examples include: consulting, writing (e.g. blog authorship, planning your first novel, etc.), handyman services, owning rental property, etc. In any of these cases, your business is considered a Sole Proprietorship unless you form a corporation of some sort.
When you apply for a business credit card as a sole proprietor, you can use your own name as your business name, use your own address and phone as the business' address and phone, and your social security number as the business' Tax ID / EIN. Alternatively, you can get a proper Tax ID / EIN from the IRS for free, in about a minute, through this website.
|Editor’s Note: This guest post was written by the same guy who showed you how to fly round trip to Africa (DC to Senegal) for 50,000 points. You can find John’s website and award booking service here: theflyingmustache.com/awardbooking.
-Greg The Frequent Miler