Chase, Credit Card Points (Chase/Amex/Citi), MilesTalk University

What to know about the Chase 5/24 rule on credit card signups: MilesTalk University

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If you sign up for a lot of credit cards just to get the miles/points bonus (and why not?!), you need to know about the 5/24 rule from Chase, because it changes the rules of engagement.

What is it?

Chase is trying to get less credit card signup churning in favor of more spending. Makes sense, right?

So they are limiting the number of cards you can signup for in 24 months. It wouldn’t be so bad if it was a limit of 5 Chase cards per two years. But it’s not. While the rule isn’t 100% hard and fast, you should assume it will apply and what it means is that if you have opened 5 new personal credit cards – from any issuer – in the last 24 months you will not be approved for a new Chase card.  Business cards you’ve applied for shouldn’t affect 5/24 as long as they don’t report to your personal credit file. But it DOES apply to applying for a new Chase business card if you are over 5/24.

What cards does this affect?

All Chase personal cards and business cards EXCEPT (According to Doctor of Credit as of July 2018):

Chase IHG
Chase Hyatt
Chase British Airways
Chase Disney
Chase Marriott Premier business card
Chase Amazon
Chase AARP
Chase Iberia
Chase Aer Lingus

Note that the Hyatt card (as of July 2018) is not subject to 5/24 yet it’s been indicated that it will be in the future and, in fact Chase may well gradually apply it to all cards. I assume they are renegotiating contracts and trying to get away from the exceptions.

As of Nov 13th, 2018, it looks like the 5/24 rule has been expanded to include most or perhaps all of the above cards. Data points continue to trickle in on Reddit but it’s possible that ALL of the above cards are now inaccessible to those over 5/24.

What’s the strategy?

Obviously this one will depend on you, but my suggestion is to plot out what cards you want over the foreseeable future.  Over a period of approx. 6 months, go for all the Chase Ink cards you would like.  At the same time you may want one or two Chase personal cards – perhaps a Chase Sapphire Reserve or the Chase Sapphire Preferred.

Then go ahead and over the next 6 months apply for the remaining Chase cards you want. Don’t go too fast. One per month (let’s say 32 days) is safe. You may end up with 3-6 Chase cards in total over a year.

At the same time, you can safely open small business cards from other issuers as they won’t count. If you see an amazing bonus on a personal card you want, it’s more than OK to get that. Don’t sacrifice all just to max every possible Chase card. But keep track of your application dates so you know when you are hitting up against 5/24.

Is the overall credit card market changing?

In short, yes. While my blog isn’t focused on credit card churning or deals, many blogs are. And the massive publicity has no doubt led to a ton more activity than in years past.  When you churn (churn is defined as opening cards just for the bonuses, closing or storing it in a drawer, and opening more), the banks always lose. When they lose “enough” they notice.  Expect it to get worse.

Is anyone else doing this?

All the issuers are waking up in different ways. American Express, for example, is now limiting to one bonus per card product, LIFETIME, and recently also started denying bonuses to people that, in its sole opinion, have opened and closed too many cards. That might even be worse, depending on your perspective.

Citi has a 1/24 rule.

Any questions?

Let me know here, on Twitter, or in the private MilesTalk Facebook group.