Chase offers lucrative credit card rewards that are the most flexible in the industry. However, Chase has recently installed a new rule that limits the likelihood of approval. I will highlight the basics to the Chase 5/24 Credit Card Rule, so you can get started on credit card churning. Due to the Chase 5/24 Credit Card Rule, I would suggest that you start with Chase cards first for two reasons: 1) Chase credit cards offer best in breed bonus points and 2) not many other banks / credit cards have this limitation so prioritize accordingly.
Understanding the Chase 5/24 Credit Card Rule
I am a huge fan of Chase Credit Cards due to the ability to transfer to travel partners, consolidation between cards and the lucrative sign up bonuses. Chase credit cards are a must-have for fellow churners. I really like how the Chase credit cards are so easy to use in manufactured spending.
There have been limited red flag data points suggesting that clawbacks will could happen on rewards points. Also, the legal language in the Chase applications do not implicitly call out manufactured spending tactics such as gift card purchases or funding bank accounts with credit cards.
To top it all off, Chase credit cards allow for me to easily book award travel through the Chase Ultimate Rewards portal. I get 1.5x my rewards points by booking through the Ultimate Rewards portal with my Chase Sapphire Reserve card!
What is credit card churning?
Credit card churning is the act of repeatedly opening and closing credit cards so that you can earn the sign-up bonuses over and over. Churners love building a massive portfolio of rewards points. Think of your rewards points like an investment portfolio.
It is not that crazy to think like that because rewards points have actual cash value. Think about that family trip you are about to take? Would you rather pay cash or rewards points and travel for free.
For me, it’s a no-brainer. If you want to learn more, we have a guide to help you understand the basics of credit card churning.
What is the Chase 5/24 Credit Card Rule?
If the credit bureau Chase pulls for you shows 5 or more cards open in last 24 months, then Chase will generally deny you certain cards.
As of May 2015, Chase will no longer approve several of their credit cards if you have had more than 5 newly opened credit card accounts, across all lenders, in the past 2 years.
This policy has been expanded to a number of co-branded cards as of May 2016, the exact cards are still being reported in, but the following are included:
- Sapphire cards
- Freedom cards
- Ink cards
- Southwest cards
- United cards
- Marriott Personal
Chase Cards Not Subject to the Chase 5/24 Rule
Here is a list of some the Chase cards that are not subject to the Chase 5/24 rule (in no particular order). These are some of our favorites that are not subject to the 5/24 rule (besides the Chase Ink Preferred Card), so take a look.
The Ritz-Carlton Rewards® Credit Card
Ritz-Carlton Rewards Bonus Offer: Two complimentary nights at any participating Tier 1-4 Ritz-Carlton hotel, after you spend $4,000 on purchases in the first 3 months from your account opening with your Ritz-Carlton Rewards Credit Card.
- Enjoy a $300 annual travel credit to use for baggage fees, seat upgrades, access to your preferred airport lounge and more.
- Upgrade to The Ritz-Carlton Club® Level 3 times annually on paid stays of up to 7 nights.
- Annual Fee: $450
IHG® Rewards Club Select Credit Card
IHG Rewards Club Bonus Offer: 60,000 bonus points after you spend $1,000 on purchases in the first 3 months of account opening.
- Earn IHG® Rewards Club points on every purchase and 5 points per $1 spent when you stay at IHG®hotels.
- Annual Fee: $0 intro annual fee for the first year, after that $49.
The Hyatt Credit Card
The Hyatt Card Bonus Offer: 40,000 Bonus Points after you spend $2,000 on purchases with the Hyatt Credit Card in the first 3 months from account opening.
- Earn Bonus Points on every purchase, 3 Bonus Points per $1 spent at Hyatt hotels, plus, 1 free night every year.
- Annual Fee: $75
You can see the remaining list of Chase credit cards not subject to 5/24 in our detail post.
Chase Sapphire Rule
Starting in September 2017, Chase no longer will approve a 2nd Sapphire product within 24 months of previous Sapphire bonus. This rule treats Chase Sapphire Preferred (CSP) and Chase Sapphire Reserve (CSR) as one family, so if you apply for the CSP, you will not be approved for the CSR until 2 years after you receive the CSP bonus, AND that you cancel or product change the CSP.
A number of folks have pushed the boundaries on this rule by applying and receiving approval on both CSP/CSR on the same day.
Warning: There have been multiple reports that Chase closed ALL CCs when a customer applies to too many cards too fast. Typically it is someone with a thin credit history applies to many Chase cards in the first year.
Due to this,you should take your time getting to 5/24. Remember, credit card churning is a marathon not a sprint.
Use this Flyertalk Thread that monitors data points on this subject.
If a Companion Pass, the lucrative opportunity to travel with a companion for no additional cost on Southwest, is of high value to you then it makes sense to ditch the idea of applying for CSP and CSR and burn 2 slots of 5/24 towards attaining a companion pass.
However, an important thing to remember is that Ink products do not count towards 5/24. Because of this, if time allows, it makes sense to apply for an Ink product(s) before applying for SW cards. Find out how you can stay under the 5/24 rule.
Conclusion on the Chase 5/24 Credit Card Rule
If you are under the Chase 5/24 Credit Card Rule, start off with these Chase cards to get your portfolio started. Then, move onto the Companion Pass cards of the Chase Southwest Business Premier and the Chase Southwest Personal Plus.
I love being able to sit in lounges from my Chase Sapphire Reserve with my significant other AND travel two for the price of one!
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