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Travel hacking can be an excellent way to save money on travel expenses, and earning rewards points and miles can help make your family’s dream trips a reality. However, it’s important to understand the rules and regulations that come with credit card applications, including Chase Bank’s 5/24 rule.
What is 5/24?
The 5/24 rule limits your eligibility for certain Chase credit cards if you have opened five or more credit card accounts with any issuer within the past 24 months. While applying for a chase card you must be UNDER 5 applications in the past 24 months. While this may seem like a hindrance to your travel hacking plans, paying attention to this rule can actually benefit you in the long run. By being strategic with your credit card applications, you can ensure that you are maximizing your rewards potential without negatively impacting your credit score.
It’s essential to understand that applying for too many credit cards within a short period can result in a lower credit score. The 5/24 rule helps prevent this by encouraging consumers to be more selective with their credit card applications and avoid overextending their credit. By taking the time to research credit card options and only applying for cards that align with your spending habits and travel goals, you can build a strong credit history and earn valuable rewards points.
5/24 Strategies
One strategy for working within the 5/24 rule is to focus on credit cards that offer high rewards and benefits without being subject to the rule. Many travel hackers will pursue business cards because many, although not all, business cards will not affect 5/24. Additionally, these business cards often offer higher rewards. (Not sure if you qualify for a business card? Check HERE!)
Others utilize the strategy of hitting 5/24 with the personal cards they want from Chase, and then pursuing cards from other banks that do not have a 5/24 limit. While it’s true that these other cards will not be subject to the 5/24 rule, they can still impact your 5/24 with Chase. Therefore delaying your chances at getting back under 5/24. We view this as a higher risk strategy, and we don’t recommend it, especially to a beginner in travel hacking.
A third strategy is to get yourself a Player 2. By taking turns opening cards, you can get a lot more miles accumulation, and now your yearly card limit has doubled.
Truly, if you want to play it safe within this, you can still apply for cards every 4-5 months. This wouldn’t accumulate points as quickly for you, but it would keep you in a safe zone with the 90-day rule, and the 5/24 from chase.
What does NOT count against 5/24?
- MOST small business cards
- Cards you were denied for
- Auto Loans
- Student Loans
- Mortgages
What DOES count against 5/24?
- Personal Credit Cards opened w/in 24 months
- Authorized user from another person’s personal card opened w/in 24 months
- Store Credit Cards
- Business Cards from TD Bank, Discover, and capital one (excluding the Capital One Spark cards)
Important Notes
Your chase business cards will not count against your 5/24 but if you hit 5/24 you will not be approved for a chase business card.
If you hit a snag because you were an authorized user on someone else’s card, but are otherwise under 5/24 you can call the chase reconsideration line.
To keep track of your credit card accounts and rewards points, consider using a tracking platform like Travel Freely. This platform can help you manage your credit card accounts, track your rewards points, and provide personalized recommendations on which credit cards to apply for based on your spending habits and travel goals.
Final Thoughts
In conclusion, while the 5/24 rule may seem like a challenge for travel hackers, paying attention to this rule can help you to not get stuck in a tough travel hacking dead zone. By being strategic with your credit card applications, you can earn valuable rewards points and make your dream trips a reality. And with the help of a tracking platform like Travel Freely, you can stay on top of your rewards and ensure that you are getting the most out of your travel hacking efforts.
