Remember the up-to-4% everywhere Smartly card? Given how US Bank nerfed it only 5 months after its introduction, it’s understandable if you’ve forgotten it already. But it’s a key to this story. I had applied just before the card’s official nerfing. And that led indirectly to my rush to get the Chase Sapphire Preferred card while the 100K offer was available…
In November last year, US Bank launched the Smartly card which offered up to 4% cash back for all qualified purchases. To qualify for 4% back, you needed $100,000 in investments with US Bank. Those who already had that much or more in investments could do an in-kind transfer to US Bank without having to sell and re-buy stocks. Other than the fact that many reported that US Bank was a huge pain to work with, it was an amazingly good deal. Too good. That’s why US Bank made huge changes to the card. Anyone who applied April 14th 2025 or later, got the new nerfed version of the card with capped rewards, excluded categories of spend, and a requirement to keep the $100K in an extremely low-yield checking account. The good news was that people who applied before April 14th were grandfathered into the original card terms. That’s why I applied for the card on April 12th.
I’m a credit card collector. I love having cards that offer value and are no longer available to get new. My Citi Prestige card is one example. My IHG Select card is another. So, I applied for the version 1.0 Smartly card before it was too late. My application was instantly denied.
Ten days later, I got around to calling US Bank’s reconsideration line. They transferred me to their security verification department which they oddly described as the “CafĂ© team.” It turns out that my application was initially declined because I had applied while in Washington D.C. rather that from home and so that triggered a flag. After I answered their security questions, my application was put through and my application was approved.
When I received the card, I jumped right into the terms and conditions to make sure I had the original version of the card rather than the new one. I was relieved to find the original terms. Awesome. I had now secured a new unobtainable card for my collection!
After activating my Smartly card, I added it to my Travel Freely account (as I do with all new cards). That’s when I noticed that I had just hit 5/24. Chase doesn’t usually approve new credit card applications if you’ve opened 5 or more new credit cards in the past 24 months. Travel Freely does a great job in showing your current status on that score and makes it easy to see when you’ll drop below 5/24. You can read more about 5/24 here.
I wasn’t too worried about my 5/24 status because I didn’t have any immediate plans to apply for Chase cards. I didn’t intend to apply for the Sapphire Preferred 100K offer because I was happy with my Sapphire Reserve card and I’d have to get rid of that before applying for the Sapphire Preferred.
Then, I updated the post “Chase Sapphire Reserve vs Sapphire Preferred: Which is Right for You?” When I ran the numbers in that post, I realized that the Sapphire Reserve doesn’t really make sense for me anymore. At least, not at this time. And then it dawned on me… if I’m going to get rid of my Sapphire Reserve card anyway, I’d be crazy not to apply for the Sapphire Preferred while the 100K offer was available.
Even though the Smartly card was going to put me at 5/24 and make me ineligible for the Sapphire Preferred offer, I had a window of opportunity. Chase uses your credit report to determine your 5/24 status. When you open a new credit card account, it usually takes anywhere from 30 to 60 days for the new account to appear on your credit report. So, I actually had time to apply for the Sapphire Preferred offer, but I had to do it right away in case the new account was reported sooner than expected!
My next issue was that I didn’t know how long the 100K offer would last and I had to get rid of my Sapphire Reserve card before Chase would consider an application for the Sapphire Preferred. How long after product changing from the Sapphire Reserve to a Freedom card would I have to wait until I could apply? I couldn’t find any hard data on this, so I tested it out myself…
I called Chase and product changed my Sapphire Reserve card to a Freedom Unlimited card. I then immediately applied for the Sapphire Preferred card, but Chase wouldn’t even process the application because they still thought I had a Sapphire card. I proceeded to apply for the Sapphire Preferred multiple times until Chase finally processed the application. For me, the answer was that I had to wait two business days after product changing to put an application through. I wrote up the experiment here: How soon can you apply for the 100K offer after product changing?
The next day I received an email from Chase saying that my application was approved!
Please see these posts for more information:
- Chase Sapphire Preferred guide and application link
- Sapphire Preferred 100K Q&A: Everything You Need to Know
- Chase 5/24 Rule: How to Count Your Status – 3 Easy Ways
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Greg I have to thank you. Just like you I had the Sapphire Reserve card and didn’t think I could get the Sapphire Preferred card in time. My wife already had it. Following your instructions, I checked my 5/24 status in Travel Freely and saw I had an opening. Then I downgraded my Sapphire Reserve to a free card. Then (thanks especially for this piece) I waited 2 business days until this morning to apply and was approved immediately for the SP card….and the 100,000 points. BONUS – I had just recently renewed my Sapphire Reserve card and my entire $550 annual fee was refunded. You guys are the best!!
I got my last signup bonus on the CSP with the statement that closed on May 14, 2021. Does Chase consider the 48 month rule to end exactly 48 months later to the day (I could apply for a new CSP on May 15, 2025), or at the end of the 48th month (I have to wait till June 1, 2025, to apply)?
Some have said that it’s actually based on the day in which you met the spend requirement so that would be before May 14. Since the offer is ending 9 AM EST on 5/15/2025, I’d probably take a chance and apply on the 14th
I didn’t know new accounts don’t show up immediately on credit reports. I just checked my Experian and the Amex Surpass card I applied in March 2025 hasn’t showed up yet. I’m going to try to downgrade the CSP to see if I can get approved for the CSP.
I recently referred my P2 to the CSP and haven’t gotten the bonus yet. Does anyone know if I downgrade it to a Freedom Flex, will I still get the referral bonus? Any data point?
Did you get hard pulled by Chase each time you applied?
Not until they ran the application for real at the end
Great story!
Did Chase refund the remaining annual fee on the CSR?
They will, but haven’t yet
“When you open a new credit card account, it usually takes anywhere from 30 to 60 days for the new account to appear on your credit report.”
30-60 seems to be a reasonable average, but this can vary considerably by issuer. In my experience, Chase does not report new cards to the credit bureaus until your first statement cuts. On the opposite extreme, Barclays seems to report just 2-5 days after opening! I haven’t opened new personal cards from other issuers recently enough to have useful DPs, but could be an interesting topic for a future FM article!
Barclays is very quick, usually appears on my credit report before I get my card in the mail. Definitely something to keep in mind.
I applied citi custom on 4/27 and started using it, about $400 because the card number was provided. On 5/3 I got an email that statement was mailed for that same amount and with due date on 5/27 and the card showed up on my credit report from Experian. I’m
Yep, great idea for a future post. I didn’t realize that about Barclays.
Yep, I had decided to hold off on the CSP this time around and applied for Barclays Aviator Red instead before it goes away to put me at 5/24. Reading this post I thought I might be able to sneak under the wire with the 30k Rakuten bonus but the Barclays is already on my credit report (applied 10 days ago). Oh well, good to know for the future.
I guess you missed the extra 30K Rakuten offer on this. I was at 5/24 but tried to get the incredible 100k chase points plus 30k AMEX points but Chase also knew my 5/24 status. Oh well, those extra Hawaiian cards helped me to now have 1 million Alaskan Miles 🙂
Yep, I missed it!
Given US Bank’s pattern over the past 1.5+ years with respect to its credit card operations, I’ve chosen to simply avoid it. There are plenty of other opportunities to pursue.
I product changed my CSR to FF on Friday (5/2) ~6pm and have tried a few times and still getting the denail message because I have a Sapphire. Last tried today at 7pm on 5/5.
Hopefully it clears tomorrow!
Yeah, I’m thinking now that if it’s at all consistent across situations, it must be 2 to 3 business days
I was able to apply on Tuesday(Banks don’t run back processes on weekends). Got a denial for to many recently opened cards. I opened two personal cards(Barclay’s and Citi) in Feb. Sitting at 4-24. Now on to 2nd recon try as the first agent wasn’t willing to go to far.