Chase Sapphire Reserve 50,000 Decrease Sign Up Bonus Points

Oh, the Chase Sapphire Reserve with it’s overly generous 100,000 UR Sign-Up Bonus Proposition and for those that were skeptical on this bonus staying with us for a longer time, well, you guessed right. The Chase Sapphire Reserve’s triumphant 100,000 UR’s will be reduced to 50,000 UR with the same $4,000 spend requirement by January 12.

Now, for some of you who haven’t grabbed this bonus yet will still be able to apply in-branch for the 100k offer by March 12, 2017. Also, emphasizing the decrease, there will be no favoring over the other. Complete bias means no exception to the points reduction online meaning Chase Private Clients will also be offered the 50,000 point bonus.

Chase Sapphire Reserve Bonus Decrease In-Depth

I reiterate that this was bound to happen. In an earlier post on how long the Chase Sapphire Reserve’s 100,000 UR will be staying with us, I stated that the bonus served it’s agenda in attracting a wide array of audience with the card selling “tens of thousands in the first few weeks.” The success even shocked Jamie Dimon’s (CEO & Chairman) in which he states that “We got the high FICO and good spender, but surprisingly a lot of millennials.”

Richard Ramsden

Okay. So you talked about your card business, I mean that’s an area that you have taken considerable market share and I think you said that the Sapphire Reserve card sold tens of thousands in the first few weeks, which was your annual budget at the time of the launch, can you talk a little bit about why you think that that was as successful as it was and can talk a little bit about the customers you have acquired and how they are being different from your expectations?

Jamie Dimon

Yes. The customers, we did the Sapphire Reserve and before we had any marketing, it just took off. So, it’s got a very attractive reward proposition and it was aimed at I think at super prime, very high FICOs, high spenders and stuff like that and older. We got the high FICO and good spender, but surprisingly a lot of millennials. So the card is being doing great. So one negative, which I think is very good thing and I think we have told to the analysts, it’s going to reduce our earnings by $200 million or $300 million this quarter because how you have to account for acquisition costs in that business, because you have to get the revenues over 5 years, 6 years, 7 years, but your acquisition costs expense over 12 months, so doing great. It’s got a great reward proposition. And if you don’t have one, you should get one and take it up.

Now, the bonus reduction could most likely be derived from the $300M “loss” in acquisition costs within just a Quarterly margin. With such attractive prospects attached to the card, the biggest way that Chase is going to come out on top with major profit is if CSR customers utilize this card and in Dimon’s perspective, the acquisition cost shouldn’t be a problem at all considering how rewarding the card is for spenders.

However, bringing in as much perspective possible, being able to accurately predict 7 years of projected revenue may be quite farce for some considering many variables that just won’t remain consistent throughout such a period: People using the $300 Travel Credit in 2017, People dropping the card after 1 year, etc.  Without a doubt, the decreased bonus is a big safe-play on JP Morgan’s side in order to further calculate every possible variable on this card and come out as profitable as Dimon marks the product as ($5B profit expected this quarter).

Chase Sapphire Reserve 5/24 Rule:

For those of you that are about to be under the 5/24 Rule, it’s worth definitely worth a try applying prior to the changes. If you were denied, keep in mind that Chase goes by the month and not the days. If denied, it’s worth calling reconsideration representatives and if you’re still denied, ask them if you could call back on the first on the next month (2/1).

Conclusion:

Starting January 12, new customers will only be able to pick up the Chase Sapphire Reserve with a 50,000 UR Point Bonus rather than the more attractive 100,000 Bonus. Keep in mind that a 50,000 sign-up is still pretty attractive offer if you ask me ($300 travel credit + lounge access + exceptional rewards system). You will still be able to apply for the card and get the 100,000 Bonus in-branch by March 12, 2017 though.

Bonus reduction could possibly be because of calculations within the confines of the acquisition cost each quarter. It’s almost evident that Chase will come out profiting quite a sum, but there may still be variables attached that affects the projection… Mostly the individuals who plan on dropping the card after  a year. Lastly, I do not see the bonus peaking at 100,000 UR Points again any time soon. Hopefully, there will be backdoor links available for the 100k. As always, be sure to check out our complete list of Chase Card Promotions or Credit Card Promotions.