Brian Riley, director of the credit advisory service for payments research and consulting firm Mercator Advisory Group, says the minimum credit score you need for a premium rewards cards is between 680 and 700. Cards from American Express tend to have a higher minimum threshold of 700 to 720.
"There are other things that can make you fumble along the way, though," he says.
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“The card that provides the greatest benefit might not be the card that provides the greatest rewards.”
More than your credit score matters
Your credit score is one consideration that card issuers look at when deciding whether to extend credit to you. There is a "means test" that all issuers put you through during the application process that looks at other factors, as well, Riley says.
A thread on the social network Reddit that's dedicated to the Chase card says there are a lot of factors that are taken into account when Chase decides whether or not to approve you, including but not limited to:
- Credit score.
- Number of accounts currently opened.
- Average age of your accounts.
- Number of recently opened accounts.
- Derogatory marks on your report.
- Total credit limit across all banks.
- Total credit limit with Chase Bank.
- Age of your relationship with Chase.
- Total credit utilization ratio.
- Average credit limit utilization ratio.
"And even if we knew all of this about you, we still don't know how Chase weighs each of those metrics for this card (or any other)," Reddit states.
Chase also has another unpublicized requirement that other cards don't. The company won't approve a card application if you've opened 5 or more new credit card accounts in the last 24 months.
But for all top-tiered reward cards, few really know the magic that goes into deciding who gets one -- and who doesn't.
Starting with a good credit score probably won't hurt, though.
Who gets credit?
The credit bureau Experian found that during the 2nd quarter of 2016, 87% of all new credit card originations went to consumers with a VantageScore of at least 661, says Alan Ikemura, director of product management and marketing for Experian Marketing Services. VantageScore, which ranges from 300-850, is a credit score developed by the 3 major credit bureaus.
While few consumers are rejected for credit cards -- the Federal Reserve Bank of New York put the rejection rate at 15% in June 2016 -- borrowers with poor credit scores face a tougher challenge. Subprime applicants get approved about one-quarter of the time, according to the Consumer Financial Protection Bureau.
So, yes, scores matter.
In fact, an analysis of credit card data posted to the Reddit group shows the average credit score of the 1,197 people who were immediately approved for the Sapphire Reserve card was 767 at the time of application.
If you get rejected for the Chase card -- or any other top-tier rewards card -- you might still get a credit card. It just might not be the one you want.
"They want to book accounts, but they might not necessarily want to send you that Reserve card," Riley says.
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Your pre-application checklist
Whether you think your credit is pristine or a bit damaged, everyone who plans to apply for a credit card should answer a few key questions about themselves and their targeted card first, says Paul Golden, the director of media relations for the National Endowment for Financial Education.
First, check your credit report and credit score. The 3 major bureaus allow you to pull your report once a year. Stagger it throughout the year so that you can check 1 report every 3 months, Golden says.
"We should all be checking our credit and we should all know what our score is," he says.
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When you begin searching for a specific card, Golden says, examine these factors:
- Can you realistically pay your bill each month? (This is a requirement that card issuers must determine.)
- Is the interest rate too high?
- Do you understand the fees and penalties?
- Is there an annual fee, and if so, is it worth it?
- What does the card charge for balance transfers and cash advances?
- Is there flexibility in the rewards that are offered?
If you have a borderline credit score, you might find that cards with better interest rates are better than cards that offer miles or cash back, Golden says.
"The card that provides the greatest benefit might not be the card that provides the greatest rewards," he says.