When it rains it pours – not only have all Chase Sapphire links been updated with the brutal 4 year language for new customers but now customers will lose out on authorized user bonuses. This means one of the easiest ways of earning 5,000 points is gone. Will it return?
Chase Authorized User Bonuses of 5,000 Points Gone on Sapphire Preferred
Chase cards typically come with an authorized user bonus that gives 5,000 points/miles (or 7,500 points with some cards) to the primary card holder’s account if they add an authorized user to the account. After that is added, a single purchase will trigger that authorized user bonus.
This was a simple way to earn bonus points and miles that, depending on the card, could be worth close to $100 in redemption value! It only worked for the first authorized user and the AU card could essentially be placed in the drawer after that purchase.
The language about authorized user bonuses from September 6
That simple method of earning the points and the cost to Chase for offering that may be the reason that we find they are no longer offering that authorized user bonus. In the past, it was valid for all Visa issued cards from Chase, whether or not the language existed in the offer details. But, Chase has now removed the language spelling out that bonus (it was there as recently as September 6, 2018) which likely indicates that it is gone.
This could also have to do with Chase updating the card language to exclude potential customers who have received a Sapphire bonus in the previous 48 months (if you click through a previous referral offer link, it will ask you to hold while they direct it to a new application). It could just be that Chase wants to put the breaks on issuing those points for a while to check out their long-term marketing plan.
A Petty Change – Why Did Chase Make It?
But, I find that somewhat petty of a change. I mean, they have already ensured that the only people getting a Chase Sapphire Preferred or Reserve card are those that do not currently have one and have not had a bonus on one in the last 48 months. So, this means any new customers to the card would be pretty much new customers to the Chase Sapphire brand. What better way to encourage these new customers to let others use the card also than to offer an authorized user bonus?
There could be one other reason and I really hope I am just thinking crazy thoughts here – it could be that Chase may eventually restrict authorized users from getting the bonus on their own card. Chase is getting very strict with issuing bonuses so this may be the next avenue they could take. Personally, I think that would be something that would never happen without plenty of warning (imagine the outrage of customers that found out they would have to wait 4 years because they were an authorized user on their family member’s card!) – maybe this is the first hint of the warning?
HT: TPG
Chase is getting worse and worse. They are constantly taking benefits away from us. I have to wonder if they are even making money on any of their credit cards. Years ago they wanted to be the best credit card issuer because they were envious of city and AMEX. Now that they feel that they have the best (though I have to wonder at what cost) they feel that they can keep changing the rules without any repercussions. Well that might soon change and I can’t wait until people start dumping chase credit cards.
This market is really cyclical. When the economy is going great, banks tighten up and can be very selective. When it is on the lower side, banks get desperate for customers and give more to get. At the same time, they almost always are using these bonuses and perks as test cases to see what draws people in and then how much it costs to retain that. This latest move by Chase really is a big negative but I hope they will see it and back up.
[…] Chase Authorized User Bonus of 5,000 Points Gone on Chase Sapphire Preferred – Why? Running with Miles […]
I put my 13 year old daughter as an authorized user only because of the 5000 points, but I’d never dream of letting her have the card until she’s older. I haven’t put my wife on as an AU in quite a while because it shows up as a new account on her credit report. I’ve heard stories of people putting their dog on as an AU to get the 5000 points because Chase only asks for a name and birth date with no SSN.