Let’s face it—the easiest way to amass points and miles without flying is through credit card sign-up bonuses. However, entering the points and miles game isn’t a walk in the park; it demands dedication, information, discipline, and experience. It’s a meticulous and sometimes stressful process. If you’re not financially responsible, it’s best to steer clear. In the points and miles game, a crucial rule is never to carry a balance or pay interest. By staying debt-free and on top of payments, you maximize benefits and make your points work for you.
Many details are easy to overlook when managing points, miles and rewards, such as sign-up bonus opportunities, using an inappropriate credit card, neglecting point expiration policies, redeeming points inefficiently, failing to diversify points, accruing interest by maintaining a balance, and overlooking transfer partners and many more.
However, in this article, let’s focus on Chase’s 5/24 rule. Understanding this rule is crucial for success in the miles and points game. Reliable bloggers in the community provide valuable insights, so thorough research is essential for effective navigation [link1] [link2] [link3].
What is Chase notorious, unconfirmed 5/24 rule?
Chase’s 5/24 rule, though unconfirmed, is a big deal in the credit card world. It suggests that opening five or more credit cards in 24 months might result in denial of certain Chase cards. This rule applies universally, covering not only Chase-issued cards but credit cards from any financial institution. Chase business cards are factored into the 5/24 rule as well, significantly affecting eligibility for different Chase credit cards.
From Chase’s viewpoint, the 5/24 rule is a guardrail, preventing people from opening too many cards just for bonuses and ensuring the bank’s interests are protected. If you open more than five cards in 24 months, Chase sees it as a sign you might not be in it for the long haul, potentially risking credit issues.
Navigating the 5/24 Landscape:
Understanding the implications of the 5/24 rule is essential for anyone entering the world of credit cards and rewards programs. To navigate effectively, consider these insights:
- What Doesn’t Count?
- Certain accounts, such as mortgages, auto loans, student loans,do not count toward 5/24.
- Business credit cards from American Express, Bank of America, Barclays, Chase, Citi, US Bank, and Wells Fargo do not impact your Chase 5/24 status as these banks usually don’t report business card activity to personal credit reports [link].
- Workarounds:
- Product Changes: While maintaining your 5/24 status, you can still make product changes, like downgrading a Chase Sapphire Preferred card. However, this won’t qualify for a sign-up bonus.
- Authorized User and Targeted Offers: Being added as an authorized user or receiving targeted offers that bypass the 5/24 rule are reported strategies, though not guaranteed.
- In-Branch Approvals: Some individuals have reported success with in-branch applications, seemingly exempt from the 5/24 rule.
- “Just for You” offers: “Just for You” offers from Chase are personalized credit card deals designed for individual customers. These special offers are not available to everyone and are crafted for specific customers based on their finances and spending habits. Keep an eye on ‘Just for You’ offers within your Chase account, especially if you’re at or above the 5/24 rule limit. Be sure to check for fixed APR offers, as they could potentially bypass the rule.
- Surviving if You’re Over 5/24:
- Wait it Out: Wait until your existing ones hit the two-year mark for a better chance.
- Switch the Scene: If Chase’s door is closed, head to a different party. American Express, Citi, Barclay’s have a cool lineup that might suit your need.
- Monitoring Your 5/24 Status:
- Credit Karma: Utilize a reliable free tool for tracking active credit cards and their opening dates.
- Annual Credit Reports: Obtain a comprehensive list of your accounts and their opening dates.
- Personalized Spreadsheets: Create a personal tracker for a detailed history of your credit card activities.
- Changes in Chase’s 5/24 rule?
- Chase’s 5/24 rule might be easing up, but proceed with caution. Reports hint at changes, though nothing is confirmed. Stay informed by checking with Chase or their official website for the latest. In the dynamic world of points and miles, things can change swiftly, so be cautious when planning your credit card applications.
In Conclusion
In essence, entering the points and miles game through credit card sign-up bonuses is potentially rewarding but complex, requiring dedication and financial responsibility. The 5/24 rule, potentially denying certain Chase cards to those with five or more recent credit card openings, underscores the need for careful credit management. The key advice is to avoid carrying a balance, prioritize staying debt-free, regularly monitor credit reports, and conduct thorough research. Explore potential workarounds like product changes, in-branch approvals, or checking out ‘Just for You’ offers.
New to earning miles and points? Read my tips on how to collect them effortlessly [link]. I’ve got a beginner’s guide to credit card points and miles to help you start. If your credit card is declined or pending, don’t stress—it’s not over. Check this [link] for basics on the credit card application process and what to do with a reconsideration line. Explore my list of sweet spots to make the most of your miles and points. Enjoy your points and miles journey!
