Maximize Your Miles:
The Insider’s Strategy for the Chase 5/24 Rule
What is the Chase 5/24 Rule?
The Chase 5/24 rule is a pivotal policy for anyone interested in the art of credit card churning, especially within the travel rewards community. This rule, while not officially documented by Chase, is well-known among credit card enthusiasts and states that if you’ve opened five or more new credit cards from any issuer in the last 24 months, Chase will likely deny your application for any of their new credit cards. This rule applies to most of Chase’s personal credit cards but does not directly count business cards towards this limit, although you still need to be under 5/24 to be approved for Chase business cards.
Understanding the Mechanics
Chase’s decision-making process involves examining your credit report to see how many new credit accounts you’ve opened within the last 24 months. Importantly, this includes accounts from all banks, not just Chase. Here’s how it typically works:
- Each new personal or business credit card opened in the last 24 months counts towards your 5/24 tally.
- Business cards do not directly add to this count but can be a strategic way to earn rewards without affecting your personal card applications later.
- To monitor your status, you can pull your credit report from services like Experian, sorting by the date of account opening to count how many are within the 24-month timeframe.
Which Chase Cards are Impacted?
The 5/24 rule casts a wide net over Chase’s portfolio, affecting:
- Chase Sapphire Preferred® Card
- Chase Sapphire Reserve®
- Chase Freedom Unlimited®
- Chase Freedom Flex℠
- Virtually all Chase co-branded cards, including those with airlines like United and Southwest, and hotel partners like IHG and Marriott.
While business cards from Chase don’t count toward your 5/24 total, securing approval for them still requires you to be under the 5/24 limit at the time of application.
Strategies to Navigate the 5/24 Rule
Navigating the 5/24 rule requires foresight and strategy. Here are some detailed approaches:
1. Prioritize Chase Cards Early
If you’re new to the credit card game or haven’t applied for many cards in recent years, consider starting with Chase. Their Ultimate Rewards points are among the most versatile for travel redemptions, potentially offering the highest value. The “Chase Trifecta” – consisting of the Sapphire Reserve, Freedom Unlimited, and Ink Business Preferred – is a popular starting point for maximizing Chase points.
2. Utilize Business Cards
Chase’s business cards are a goldmine for those under the 5/24 rule. Even if your “business” is freelance work or a side hustle, you might qualify for these cards. They offer lucrative sign-up bonuses and rewards structures without directly affecting your 5/24 status. Cards like the Ink Business Preferred and Ink Business Cash are particularly popular for their point-earning potential.
3. Product Changes
If you’re already over 5/24 but want to switch to a different Chase card, a product change might be your solution. Transferring from one card to another within Chase’s ecosystem (like from a Freedom to a Sapphire) doesn’t count as a new account application. However, you should confirm with Chase whether this involves a hard credit pull or if it results in a new account number, as these details could imply a new account under 5/24 rules.
4. Look for Targeted Offers
Chase occasionally sends out personalized “Just for you” offers to existing customers. These can sometimes bypass the 5/24 rule, allowing you to apply for cards you wouldn’t otherwise qualify for. Check your Chase account regularly for these opportunities.
When to Consider Ignoring the 5/24 Rule
While the focus should often be on staying under 5/24, there are strategic times when other issuers might take precedence:
- Proximity to Significant Rewards: If you’re close to achieving a major reward with another issuer, like the Southwest Companion Pass, taking a card to push you over 5/24 might be worth it for long-term benefits.
- Outstanding Bonuses from Other Issuers: Sometimes, other banks like American Express or Citi offer sign-up bonuses that are exceptionally valuable. If these bonuses align with your travel plans or if you can transfer points to valuable partners, it might be strategic to apply even if it means going over 5/24 temporarily.
- Diversifying Your Points Portfolio: Having a mix of points from different issuers can offer more redemption options. If a card from another bank provides unique benefits or transfer partners that Chase doesn’t offer, it might be worth the wait after going over 5/24 to get under again.
Advanced Tips for Managing Your 5/24 Status
Beyond basic strategies, here are some advanced tips for managing your 5/24 status:
Timing Your Applications
Plan your applications with a calendar. Note when past accounts will drop off your 24-month window. If you’re at 4/24, waiting a few months before applying for another card might be wise if you know one will soon fall off your report.
Leveraging Authorized Users
Adding someone as an authorized user on a card can sometimes help bypass the 5/24 rule, especially for co-branded cards where this might not count towards your own 5/24 count. However, this is less common and more speculative, so proceed with caution.
Reconsideration Line
If you’re denied due to the 5/24 rule, calling Chase’s reconsideration line can sometimes result in approval. Be prepared to argue your case, perhaps explaining why certain cards were opened or if there were any errors in your credit report. Politeness and persistence can sometimes turn a no into a yes.
Keep Your Credit Health in Check
While focusing on 5/24, don’t neglect other aspects of your credit health like payment history, credit utilization, or diversity of credit. A robust credit profile can sometimes sway decisions in your favor for borderline cases.
Conclusion
The Chase 5/24 rule is a significant consideration for anyone looking to build a portfolio of credit cards for travel rewards. By understanding how it functions and employing strategic application timing, product changes, and considering alternative offers, you can make the most of your credit card applications. Remember, while patience can pay off when waiting to fall back under 5/24, sometimes the opportunity cost of missing out on significant rewards from other issuers might make it worth temporarily ignoring the rule. Balancing this equation between immediate gains and long-term strategy is the key to mastering the art of credit card rewards within the constraints of the 5/24 rule.
