The Chase 5/24 Rule has been a thorn on most of our sides since it was implemented last year. It’s one of the most stringent rules implemented by any bank to curtail credit card churning. With a few exceptions, Chase will not approve credit card applications for people who have applied for five of more credit cards in the last 24 months. The good news is that the 5/24 Rules doesn’t apply to all Chase credit cards. The Chase Hyatt Visa, IHG Rewards Club Card, British Airways Visa, and Marriott Premier Rewards Business Card are just a few of the credit cards excluded from this rule. So when I hear people lamenting about 5/24 I always wonder, “Is 5/24 even relevant anymore?” Is any Chase credit card worth staying under 5 applications? I don’t think so.
Regardless of whether you’re a regular credit card churner or not, I don’t think the 5/24 rule matters much anymore. Yes, if another 100,000 point Chase Sapphire Reserve offer comes around I’ll totally backtrack on that comment. But that isn’t likely to happen anytime soon, since it seems to have been purely a marketing ploy to promote a brand new card. After all, if the sign-up bonus had been 50k like it currently is, bloggers would have a hard time writing about it with enthusiasm. That’s especially true since the Sapphire Preferred offers the same bonus and a lower annual fee, albeit with fewer benefits.
Even if the 100,000 point bonus did make a comeback, I still don’t think its worth holding off on other credit card sign-up bonuses for. Nowadays, you can easily earn twice as many points per credit card churn as a single Sapphire Reserve megabonus. At the moment, there’s a 75,000 point sign-up bonus for the Business Platinum Card. Citi has been mailing out targeted 65,000 mile bonus offers for the Citi AAdvantage Platinum Card. The Barclay Aviator Red and Arrival Plus cards are still churnable with generous sign-up bonuses of 40,000 and 50,000 miles. And don’t forget about the Bank of America Alaska card, which you can get every 90 days (with some restrictions).
If you were to forego all of these cards over a 24 month period, you’d lose out on hundreds of thousands of miles. Never mind that some of them can be churned multiple times over 24 months. I don’t see a single credit card in Chase’s line-up that is worth avoiding 5/24 for.
“But what about the Southwest Companion Pass?” Recently, Chase did increase the sign-up bonus on the Southwest Premier credit cards. The business version is still at 60,000 points after $3,000 spent in 3 months. That’s a great offer and goes a long way towards the 110,000 points required for the Companion Pass. But it’s not the only way to earn those points. Points earned through the Southwest Rapid Rewards portal count towards the Companion Pass, as do those earned through Southwest Dining Rewards. If you’re heavily into manufactured spending, $50,000 worth of Visa gift card churning is basically a cakewalk. But is the possibility of earning the Southwest Companion Pass through an increased credit card sign-up bonus worth foregoing other sign-up bonuses? Absolutely not. Besides, who knows if the Companion Pass will even be a thing in 24 months. Or 24 hours!
Anyway, I want to hear from you: Do you think the Chase 5/24 rule is relevant anymore? Are there any credit cards you think are worth trying to stay under 5 applications in 24 months?
Subscribe to Blog via Email