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We’re living in surreal times. One can’t almost believe that the world’s major cities are completely locked down. When the economy was going steady, we saw many banks impose restrictions on who could get credit cards or how many cards one could get. With the economy the way it is now, many projections point towards a slowdown. In such a case, what happens to the many restrictions that are already in place, like the Chase 5/24 rule?
The Chase 5/24 rule
In simple terms, Chase’s 5/24 rule means that Chase will not approve you for a card if you fit certain criteria. If you have been approved more than 4 credit cards in the last 24 months by any bank, Chase will not approve you for any of their cards. Also, Chase introduced this rule initially only to a few of their cards. However, Chase expanded the rule and it now applies to almost all of their cards.
In addition to 5/24, Chase also added higher spend thresholds to meet welcome bonus requirements. For many of their cards, Chase introduced a tiered system. This meant that you had to spend more and spend for a longer period of time. For example, take the World of Hyatt Card. You’ll earn a total of 50,000 bonus Hyatt points. However, you’ll first have to spend $3,000 in the first 3 months to earn 25,000 points and then another $3,000 in the first 6 months to earn another 25,000 points, totaling to 50,000 bonus Hyatt points.
Over the last few months, we saw Chase target customers with offers. Chase targeted me with this offer as well. For many customers, they saw the offers after logging into their accounts.
The Pundit’s Mantra
As many predict, the economy could get worse before it gets better. How will Chase tweak their credit card acquisition strategy? I don’t see them completely drop 5/24. Also, remember that Chase 5/24 is pretty much an unwritten rule. Even if it were to ‘go away’, Chase has other restrictions in place like the One Sapphire Rule and the 2/48 rule.
Chase could well take a middle of the road approach. While 5/24 may still be alive, we could see them relax or lower spend thresholds for welcome bonuses. As people spend less, that could be their next avenue to still keep attracting customers for their credit card products. Who knows, Chase could simply keep 5/24 alive and start targeting more people with welcome bonus offers instead. Since 5/24 is an unwritten rule, Chase still holds all the cards. (no pun intended 😁)
Do you intend to apply for a Chase credit card any time soon? What’s your Chase 5/24 status? Let us know in the comments section.
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