What is the “5/24” rule?

The “5/24 rule” is a term often used in the context of credit card applications and points-based travel rewards. It refers to a policy implemented by Chase, one of the major credit card issuers in the United States, specifically for their lineup of Chase Ultimate Rewards credit cards. The rule is designed to limit the eligibility of certain individuals for these cards based on their recent credit card application history.

Here’s what the “5/24 rule” entails:

If you have opened five or more new credit card accounts across all issuers within the past 24 months, you may not be eligible to apply for certain Chase credit cards, including those that are part of the Chase Ultimate Rewards program. This rule is aimed at preventing individuals who frequently apply for new credit cards from gaining excessive access to Chase’s premium rewards cards.

It’s important to note that the rule doesn’t only consider Chase credit card applications but takes into account all credit card accounts opened across different banks or financial institutions.

For avid points and miles enthusiasts, understanding the “5/24 rule” is crucial when strategizing credit card applications to maximize travel rewards. By being mindful of your application history, you can make informed decisions about which credit cards to apply for and when, ensuring you can take advantage of the best travel rewards opportunities available to you.

Why is the “5/24” rule important?

The “5/24 rule” is a crucial concept in the world of travel points and credit card rewards, particularly for those aiming to maximize their benefits and earn valuable points for travel. Understanding and adhering to this rule is important for several reasons:

1. Chase Ultimate Rewards Ecosystem: The 5/24 rule is primarily associated with Chase, a major player in the travel rewards credit card market. Chase offers a range of credit cards that earn valuable Ultimate Rewards points, which can be transferred to various airline and hotel loyalty programs or used for cash back, merchandise, or travel bookings.
2. Access to Premium Cards: Chase has some of the most sought-after premium travel rewards cards, such as the Chase Sapphire Preferred® Card and Chase Sapphire Reserve®. These cards offer generous sign-up bonuses, flexible redemption options, and valuable travel benefits. Adhering to the 5/24 rule ensures that you maintain eligibility for these premium cards, which can greatly enhance your travel experience.
3. Maximizing Points: Earning sign-up bonuses from credit cards is a key strategy for amassing travel points quickly. By understanding and following the 5/24 rule, you can strategically plan your credit card applications to ensure you’re eligible for the most lucrative sign-up bonuses and rewards offers.
4. Long-Term Strategy: Credit card rewards enthusiasts often develop long-term strategies to optimize their points and miles. Staying within the limits of the 5/24 rule is an essential aspect of this strategy, allowing you to continuously access new cards and their benefits over time.
5. Minimizing Impact on Credit Score: Frequent credit card applications can potentially impact your credit score. By adhering to the 5/24 rule, you can avoid excessive applications and maintain a healthy credit history.
6. Balancing Card Applications: The 5/24 rule helps you strike a balance between applying for new credit cards to earn bonuses and avoiding overextending yourself with too many accounts.

Ultimately, the 5/24 rule shapes the way avid travelers and points enthusiasts approach their credit card application strategy. By understanding its significance and planning your card applications strategically, you can unlock access to premium travel rewards and maximize the value of your points for unforgettable travel experiences.