The Chase 5/24 Rule is the Bank of Morgan’s most infamous and restrictive credit card application rule. While it sounds limiting for many prospective cardholders, the Chase 5/24 Rule is not something you should always be afraid of. This post explains why I stopped caring about the Chase 5/24 Rule.
Moreover, the Chase 5/24 Rule limits the amount of Chase credit cards a cardholder can be approved for. It states that a cardholder may not be approved for a new Chase credit card if they were approved for at least five new credit cards within the last 24 months. The five-card total includes all Chase cards, all other personal credit cards, and certain business credit cards.
I Already Have the Chase Trifecta
Part of playing your cards right is knowing which credit cards to apply for first. I chose Chase because of the 5/24 Rule and because their transfer partners worked best for my travel needs. Plus, their cards offer useful bonus categories for me.
I currently have the Chase Sapphire Preferred, Freedom Unlimited, and Chase Ink Business Cash. These three cards garner about 90% of my spend unless I am taking advantage of a promotion from another card. All of them are keepers because they are useful for my spending needs. Plus, I have not seen any offers from Chase lately that will nicely complement my trifecta. Therefore, I do not need to care about the Chase 5/24 Rule.
I Do Not Apply for Credit Cards Frivolously
Unlike a plethora of other travel bloggers, I do not apply for credit cards frivolously. Some other travel bloggers have upwards of 20 credit cards because they take advantage of the earning structures, status, and perks that come with them. I do not have a need for those perks and the annual fees that come with them. And this is especially true currently because of the COVID-19 pandemic.
Furthermore, my most recent credit application was for my Amex Hilton Surpass in September 2020. And I am currently at 2/24. This is because applying for a new credit card is a decision that I must honestly think about before acting. Such deliberation often makes me resist applying
The bottom line is that I am content with the six credit cards I have.
Other Issuers Have Great Offers Too
Chase is not the only valuable credit card issuer, especially for those who have a plethora of their cards. American Express, for example, is Chase’s primary competitor for points and miles credit cards. Their Membership Rewards (MR) points-earning cards are just as good as Chase’s Ultimate Rewards (UR) points-earning cards for travelers. Therefore, worrying about the Chase 5/24 Rule too much can make prospective cardholders forget about other issuers’ cards.
Consider the Chase Sapphire Reserve and the American Express Platinum Card. Both have different earning structures, perks, and sign-up bonuses. But they have the same annual fee. A prospective cardholder who is worried about the Chase 5/24 Rule might apply for the Sapphire Reserve over the Platinum Card. But they might find that the Sapphire Reserve is not right for them in the long run. Or they might find that they wanted to earn MR points and missed out on a valuable sign-up bonus because they passed on the Platinum Card.
The Chase 5/24 Rule & Opportunity Cost
Investopedia (H/T) defines an opportunity cost as “the benefits an individual, investor or business misses out on when choosing one alternative over another”.
In the example above, the cardholder who chose the Sapphire Reserve over the Platinum Card would be missing out on a larger sign-up bonus, a different set of perks, and a different earning structure. And the cause of missing out on the Platinum Card’s offerings is the Chase 5/24 Rule.
Not caring about the Chase 5/24 Rule provides less stress and anxiety. Furthermore, it lets cardholders expand their horizons and care about other offers. Benjy Harmon from Miles to Memories (H/T) provided an excellent example of such freedom. He compared the amount of points he would have received from Chase and other issuers combined over a one-year period. And the combined non-Chase offers were much bigger.
The Chase 5/24 Rule is the most infamous credit card application rule in the industry. But it does not have to restrict you, especially if you are above 5/24. There are plenty of other offers out there that can let you travel at little to no cost.
Moreover, this post presents my situation and why I stopped caring about the Chase 5/24 Rule. But your mileage may vary. Your credit situation will likely be different than mine. And that means you might not care about the Chase 5/24 Rule for different reasons. Or it might mean that you should care about it more.
Nonetheless, not caring about the Chase 5/24 Rule does not mean I am not a Chase fan. Chase is an amazing credit card issuer with some of the most lucrative cards in the industry. I will continue to use my Chase Trifecta because of the combined earning structures and perks that I am receiving. But I am also content with knowing that other issuers will provide me tantalizing offers as well.