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Credit card companies have been making changes lately to try and encourage profitable behavior and also cut down on the number of people applying for the same cards over and over. For example, American Express now restricts credit card bonuses to once in a lifetime, on both personal and business cards.
Last year Chase also instituted a new policy on their personal non co-brand credit cards (cards not issued in conjunction with another brand), like the Chase Sapphire Preferred® Card, Chase Freedom® Card, and Chase Freedom Unlimited. Specifically, Chase is generally no longer approving people for these cards if they’ve applied for more than five credit cards in the past 24 months. We’re not talking about five Chase cards in the past 24 months, but rather five cards of any kind.
The logic is likely that they assume those with more credit cards are more likely to be getting the cards just for the sign-up bonuses, and therefore are less likely to be profitable customers.
In March I wrote about how Chase was apparently planning on extending this policy to their co-branded credit cards soon. That was per Doctor of Credit, who was quoting an unnamed source.
Now Doctor of Credit is reporting that as of a couple of days ago, Chase’s policy of not approving those who have applied for more than five cards in the past 24 months has been extended to several more cards. The policy of not approving people who have applied for more than five cards in 24 months is nicknamed the “5/24 rule,” so it’s sort of funny that he wrote about it yesterday… which was May 24 (5/24).
Per Doctor of Credit, this 5/24 rule now applies to the following cards:
- Chase Business Ink Plus/Cash
- All Chase Marriott Cards
- All Chase Southwest Cards
- All Chase United Cards
Supposedly this doesn’t apply to the following cards:
- Chase IHG
- Chase Hyatt
- Chase British Airways
- Chase Disney
- Chase Fairmont
- Chase Amazon
- Chase AARP
The fact that different co-brand cards have different policies seems a bit strange, so I wonder what determines the differing policies. Interestingly Doctor of Credit points out that the cards to which the new rules apply are all ones where there’s both a business and personal version of the card. That’s not the case for the cards to which the new rules supposedly don’t apply.
I wouldn’t take this information so far as absolute fact (not doubting Doctor of Credit, but rather sometimes this isn’t implemented consistently). But I do think it’s at least being aware of what the new rules supposedly are, so that we can share data points based on our experiences going forward.
We knew the 5/24 rule was being extended to more Chase cards, so this doesn’t come as a surprise. I suppose the good news is that this doesn’t apply to all Chase cards, including the IHG® Rewards Club Select Credit Card and British Airways Visa Signature® Card, which are two of Chase’s better co-brand cards. I’d be very curious about what’s going on behind the scenes to determine whether a card has this restriction placed on it or not.
Have you applied for any Chase cards in the past few days, and if so, what was your experience like?