Chase, So You Can’t: Update on 5/24 – The Other Shoe Drops

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Chase, So You Can’t: Update on 5/24 – The Other Shoe Drops

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[Disclosure: I may earn compensation if you click on any external links].

A few days ago, Doctor of Credit reported that his sources (and as posted on DansDeals Forum and Reddit) confirmed the “5/24” rule from Chase went into effect a few days ago. Briefly, the 5/24 rule from Chase means that if you have opened up 5 of any card (read: from all banks, not just Chase) within a 24 month period, you will not be eligible to open a new card, even if you check out on their other approval factors. Many data points seem to indicate that this is indeed the case for many cards.

This first started over a year ago with the Freedom, Sapphire and Slate cards. Doctor of Credit reported that March and April would be for business (Ink) and then co-branded cards, respectively. March and April came and went, but we all hoped to skate by unscathed. Not so anymore.

5/24 is indeed in effect for the following products:

But, there’s a silver lining.

Multiple data points indicate that the following cards fall outside these new rules:

  • British Airways
  • IHG
  • Hyatt
  • Fairmont
  • Disney
  • Amazon
  • AARP

Does this mean that these cards will be exempt forever? I’d imagine if Chase gets its way with the co-brand relationships, then no, these cards will fall under the 5/24 rule as well. For now, it seems like we’re safe. No promises on how long…

Moving forward, what are my best options?

Well, there are a few scenarios. I reviewed some of these here, but considering the cards that are okay and those that are not, let’s review.

If you are not over 5/24…

Travels internationally (all classes of service)

If you are just getting started and have 0 cards:

  1. Chase Freedom or Chase Freedom Unlimited – This is a great no fee card which is a powerful earner of Ultimate Rewards (UR), especially if this is your first card. Conventional churning wisdom would tell you to apply for this and another Chase card, but if you have no credit history, go for one at a time, and this is an easier approval than other premium cards.
  2. Chase Sapphire Preferred – Great sign-up and when paired with the Freedom or Freedom Unlimited; see some great transfer partner uses here.
  3. Chase United Mileage Plus Explorer – Because you can transfer points from the Sapphire (or Ink Plus) to United, this is a good card when it’s at the highest bonus of 50,000. Currently at 30,000 (that’s why no link has been provided) Rumor has it that chase will up this bonus to 70,000 in June.
  4. Chase Ink Plus – This is a business card. If you have a small business, I’d even recommend getting this before the Sapphire Preferred. Sign up and bonus categories earn greater.

You could fill your last two slots with Southwest (which are best for domestic airfare), or the Marriott and Ritz-Carlton cards. Just depends on what uses you have.

Travels domestically (coach)

  1. Chase Freedom or Chase Freedom Unlimited – This is a great no fee card which is a powerful earner of Ultimate Rewards (UR), especially if this is your first card. Conventional churning wisdom would tell you to apply for this and another Chase card, but if you have no credit history, go for one at a time, and this is an easier approval than other premium cards.
  2. Chase Sapphire Preferred – Great sign-up and when paired with the Freedom or Freedom Unlimited; see some great transfer partner uses here.
  3. Chase Southwest Premier – This card is currently offering 50,000 points after $2,000 in spending. If you get this with the Plus, you’d be on your way to earn the vaunted Companion Pass which is crucial for saving tons of money on domestic traveling.
  4. Chase Southwest Plus – This card is currently offering 50,000 points after $2,000 in spending and it will go a long way towards the Companion Pass.

These two categories are very similar because of the flexibility URs provide. For this last slot, I’d go for British Airways (even though it’s outside 5/24) or the Ink, if you have a small business.

If you are over 5/24… Or close

Interestingly, the cards which currently fall outside the 5/24 rule are a lot of Chase’s hotel co-branded products. As a churner, I’d say go for two at a time if you can handle the spending.

  1. British Airways – Very good for domestic short-medium haul traveling in most of the continents where One World has partners. Currently at 50,000 points for spending $2,000 and then 25,000 more for spending a total of $15,000 in a card member year.
  2. Chase Hyatt – One of the best hotel credit cards in the business, offering 2 nights at any category Hyatt worldwide, as long as there is availability. Using this at high category hotels is highly recommended. Spending is also really low at $1,000 in three months.
  3. Chase IHG – The sign up bonus fluctuates between 50 – 80,000 points (currently at 70,000). The sign up can be stretched for several nights or just 1 or 2 at a top tier IHG property, but the best part about the card is the annual certificate. You pay the annual fee of $49 and it can be used at any IHG. Great deal.
  4. Chase Fairmont – This card was a recent acquisition of mine, having had most of the Chase products in the past 24 months. The sign-up is two nights at any Fairmont hotel (most are pretty expensive). The only catch is that there are black out dates–usually around holidays. See them here. If you have a specific use, then go for it, otherwise, hold off.

Hopefully this helps you prioritize your applications if you fall in, or outside the 5/24 rule. As we move forward, I’ll continue to update this page with cards that fall into the 5/24 rule.

 

-The Miner

[Disclosure: I may earn compensation if you click on any external links].


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