Newbie’s new credit card plan, and initial results

A bit over a week ago I published “A credit card plan for a well informed newbie.”  There I detailed a plan for this retiree to quickly rack up huge numbers of points through credit card signups.  Readers weighed in with helpful suggestions, and I modified my recommendations.  I wrote:

Thanks everyone. Based on your input, I’ll recommend these changes to Ben:

1. Sign up for Ink Biz Pref and Ink Cash same day in order to combine inquiries.
2. Sign up for the Delta Biz Plat card while the historic best 70K offer is still available. Amex business cards aren’t counted towards 5/24.
3. future applications: try to combine 2 Chase personal or 2 Chase business cards same day.

If he’s going to be grouping apps together like this, then it makes sense for him to wait 91 days between applications so that the impact of the hard pulls will drop down. That won’t matter in the first few application cycles, but it can become important once he has 5 or more recent inquiries.

A couple of readers suggested that he wait to apply for the CSR [Chase Sapphire Reserve] offer to go up above 50K. Personally, I don’t think that’s at all likely to happen anytime soon, but I don’t have a crystal ball. One approach is to delay applying for CSR until Ben is at 4/24. When he’s at 4/24 and ready to apply for another card, I’d argue that CSR should be it.

So, his apps may look like this (with multi-month gaps in-between):

1. Ink Biz Preferred + Ink Cash + Delta Plat Biz
2. Sapphire Preferred + United 70K (If available) + Any biz card w/ historic high offer that doesn’t show on credit reports
3. Sapphire Reserve (in case the Ink cards did count towards 5/24) + TBD

Ben took this revised plan to heart (with one modification) and he signed up for three cards in one day.  Here’s what happened…

App 1: Chase Ink Business Preferred; 80K after $5K spend in 3 months; $95 annual fee

As a reminder, Ben has rental property so he can legitimately open business cards.  His first application was for the Chase Ink Business Preferred (more info here).  He used his full name as his business name and his Social Security Number as his business Tax Identification Number.  His revenue from this business is low, but I figured that he’d have a good chance of approval since he’s had the business for many years and this would be his first credit card application in a very long time.

Unfortunately, his application was not instantly approved.  He called Chase’s reconsideration number (found here in the “App Tips” table) to ask for an instant decision.  The agent asked a number of questions that mostly seemed to be designed to verify his identity, and then asked questions that duplicated those on the application (e.g. business revenue, overall income, etc.).  This is why it’s a good idea to note down your answers when applying for cards so that you can make sure to give the same answers on calls like this.  Apparently Ben answered the questions well because the agent approved his application.

Buoyed by the results of this application, Ben went on to apply for card #2…

App 2: Chase Ink Cash; 30K after $3K spend in 3 months; No annual fee

Ben still maintains that he can spend $5K per month on credit cards despite the fact that Plastiq recently stopped allowing Visa credit cards to be used to pay mortgages.  So he should be able to knock out the Ink Business Preferred $5K spend in month 1, and then the Ink Cash $3K spend in month 2.

Ben applied for the Ink Cash (more info here) and made sure to input the same answers as he did with the Ink Business Preferred.  Again his application went pending.  He called and was told that his application had been denied.  He asked if the decision could be reconsidered.  Yes, yes it could.  And, again, he was approved after the phone call.

App 3: Amex Gold Delta Business Card; 60K after $4K spend in 4 months + $50 statement credit after Delta purchase in 1st 4 months

Since the improved offers for the Delta Gold and Platinum credit cards are scheduled to end on July 5th, Ben decided to go for it now.  He knew that a new business Amex card would not affect his Chase 5/24 status since Amex business card accounts are not reported on personal credit reports (to be clear: the hard inquiry will show on his report, but the account will not).  He told me that it was helpful that the Delta cards allowed 4 months to meet minimum spend in case he ran into any trouble meeting spend in months 1 and 2 with the other cards.

He also wisely went against my previous advice.  I had suggested that he get the Delta Platinum Business card (more info here).  The current offer for that card includes 10K more miles than the Gold card offer (70K vs 60K) plus $50 more statement credit ($100 vs. $50).  But, he pointed out, the Gold card waives its $95 annual fee first year, whereas the Platinum card does not waive its $195 annual fee.  He continued: even if he valued the statement credits at full face value, the Platinum card would cost him $195 – $50 =  $145 more than the Gold card.  So getting the Platinum card would be like buying 10K Delta miles for $145 (1.45 cents each).  He doesn’t value Delta miles enough to do that.  Well played Ben.  Well played.

Ben applied for the Delta Gold Business card (more info here) and was instantly approved.

Tracking Applications

When signing up for many credit cards, it is critical to track your applications in detail.  Most banks have rules about how often you can sign up for different cards or even the same cards.  We keep the rules in the App Tips section of our Best Offers page (click to each bank to see that bank’s rules), but you need to track your own signups in order to ensure following those rules.

On our Start Here page, we link to a Google Docs spreadsheet that you can use as a starting point (found here).  If you’d like to use it, open the spreadsheet, then make your own copy by clicking File… Make a Copy.

Ben did this and now has 3 cards on his spreadsheet (personal info has been masked):

Next Steps

I’m looking forward to hearing how Ben does with meeting each card’s spend requirements and whether he encounters any hiccups in his plans.  I’m also hoping that Ben will continue to share his credit scores over time so that we can see how these applications effect his score.  Since none of the cards he signed up for so far will show on his credit reports (business cards from Amex and Chase are not reported to personal credit bureaus), I’m expecting very little change.  He may incur a tiny hit from the two hard inquiries (the two from Chase should combine into one), but his score should recover quickly from that.

For his next round of applications, Ben should still focus on Chase cards that fall under the 5/24 Rule while he can. As a reminder, each Chase card found on our Best Offers page notes whether or not the card falls under 5/24 rules.  The Sapphire Preferred is an obvious next choice, but Ben should also see if any Chase cards are running better than usual signup bonuses at that time.

He can also continue to pickup business cards from most banks without affecting his 5/24 status (see: Flying under 5/24).  One notable exception is that Capital One business cards are reported to the credit bureaus and therefore do count towards 5/24.  This is a shame since they have a number of excellent business card offers.

About Greg The Frequent Miler

Greg is the owner, founder, and primary author of the Frequent Miler. He earns millions of points and miles each year, mostly without flying, and dedicates this blog to teaching others how to do the same.

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Over 600,000 points and well under 5/24 - Frequent MilerGreg The Frequent MilerDrewCJesterM Chin Recent comment authors

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Dan
Guest

Great job, I found with the Ink card, mine went pending and I called and was approved. My wife applied and went pending, she never called and still got approved.

So I think that’s hust a delay and not a denial.

I think Ben’s strategy is great and glad to hear he got approved for two chase business cards. I have one but am going to spam for more until I am over 5/24.

I too am using the business card strategy to stay under 5/24. That and my wife and I trade off applications and this works really well.

JL100
Guest
JL100

I was concerned about Chase 5/24 at first and still don’t like it, but being something like 16/24 I still find great offers from Barclays, US Bank, Chase non 5/24 cards and Amex targeted offers (that allow for a second bonus) have already made 2017 a great year for bonuses. No slowing down from 16/24 yet, but probably coming soon. Just need B of A and Barclays to come out with new premium cards…

Carol
Guest
Carol

Good post Greg!

Barry
Guest
Barry

I earned the bonus on the Chase Ink Cash card by only spending in the 5X categories. The 30,000 Ultimate Rewards became 45,000 points after my purchases. If there are Visa/Mastercard gift card rebates at Staples or Officemax/Office Depot make sure to max those out. I’ve also seen eBay gift cards at Officemax and Amazon gift cards at Staples. PayPal digital gift purchases on eBay also comes in at 5X. Make sure you pay your cable and phone bill with this card too. If you’re still short of the $3000 spend on this card, just purchase the $300 Visa gift cards from Staples.com. The 5X rewards easily offset the $8.95 fee.

Lauren
Guest
Lauren

The Delta Gold application page states a different date than July 5th for expiration: if it has been extended, maybe update, thanks

Earn 60,000
BONUS MILES
after you make $4,000 in purchases on your new Card within your first 4 months† and a $50 statement credit after you make a Delta purchase with your new Card within your first 4 months.†Special offer expires on 7/26/17.†

M Chin
Guest
M Chin

A few days ago I got an email from PayPal:

Earn 2% cash back*
on everything you buy.
From the gas station to the grocery store, and everywhere in between, earn cash back on all your purchases with the new PayPal Cashback Mastercard®.

Start earning 2% cash back everywhere Mastercard is accepted, and enjoy the added benefit of no annual fee.**

Thoughts? How does this compare to other cash back cards? Thx.

CJester
Guest
CJester

If you apply for a Chase business card, does it look at the 5/24 also?

Drew
Guest
Drew

If Chase no longer allows sapphire preferred and sapphire reserve card do you have a strategy to get get the Reserve now that he has applied for the Preferred card?

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[…] in again with our informed newbie Ben. Previously, we helped him form a credit card plan.  Next, he successfully signed up for three cards at once.  Intentionally, all three were business cards that do not report to personal credit bureaus.  […]