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In May I wrote a post entitled “Deciding On A 5/24 Credit Card Strategy.”
Nowadays most of the major credit card issuers have restrictions in place that limit people from being approved for their cards, and one of the major restrictions is Chase’s 5/24 rule. With this rule, Chase typically won’t approve you for some of their cards if you’ve opened five or more new card accounts in the past 24 months.
There are some more details to be aware of, so see this post for everything you need to know about 5/24.
As I explained in May, I was in a position where I needed to decide whether I was going to try to get under 5/24 or not. At the time I was a couple of cards over the limit, and I explained that in 4-5 months I should be under the limit. So I wanted to provide an update on that, given that it has now been over three months since that post.
When I’ll fall “under” 5/24
It looks like my fifth credit card should be more than 24 months old as of September 13, 2018, since I opened the card on September 13, 2016.
So for me that’s the magic date. However, there seem to be mixed reports as to whether you can start applying again exactly 24 months to the day after you fall “out of” 5/24, or if you have to wait until the following month. To be on the safe side I think I’ll wait until October 1 for my first application, which is just over a month away.
And since I had my CreditKarma open, here’s my credit score, for anyone who is curious:
Which cards will I apply for once under 5/24?
As you might expect, I have quite a backlog of credit cards I want to apply for. We’ve seen several new great cards introduced in the past several weeks, and I haven’t applied for any of them yet, in order to get under this limit.
For context, here’s a post with all of the credit cards that I have as of now. So, now I’m putting some thought into which cards I should apply for starting in October, and in which order. I figured I’d share my thought process here.
The first two cards I’m definitely applying for
The absolute first card I’m going to apply for is the Ink Business Preferred® Credit Card. This card has a massive welcome bonus of 80,000 Ultimate Rewards points after spending $5,000 within three months.
It also offers 3x points on the first $150,000 spent each anniversary year in combined purchases on travel, shipping, internet, cable, and phone services, and advertising purchases made with social media sites and search engines. The card also offers a phenomenal cell phone protection benefit, which I’d get a lot of value out of.
Next up I’d get the new no annual fee Ink Business Unlimited℠ Credit Card, which offers a welcome bonus of 50,000 points after spending $3,000 within three months.
This card will be a great complement to both the Ink Business Preferred and the Ink Business Cash℠ Credit Card, which I already have. The card offers a flat 1.5x points for everyday purchases, so will be one of my go-to cards for business purchases.
The reason I’m getting these two cards first is because both cards are subjected to the 5/24 rule, meaning you can’t be approved for the cards if you’ve opened five or more new card accounts in the past 24 months. However, since these are business cards, the applications don’t count as a further card towards that limit.
That means once I’m at 4/24 and apply for the Ink Preferred, I’ll still be at 4/24. And then when I apply for the Ink Unlimited, I’ll still be at 4/24.
The next cards I’m applying for
After that, logically I should try to apply for another card that is subjected to 5/24, though I think the two Ink Business Cards are the only ones I really want.
So otherwise I guess I should apply for some of the non-Chase cards I’ve really been wanting to get. Since I’ll presumably have to wait a while after two Chase applications, my next order of business will be getting the Hilton Honors Aspire Card from American Express, which offers Honors Diamond status for as long as you have the card, and all kinds of other great perks.
Then eventually I’d also get the Starwood Preferred Guest® American Express Luxury Card. Personally I think the card is only marginally worthwhile, but still, I’ll take an anniversary free night certificate valid at a hotel costing up to 50,000 points per night.
Next I’d get the IHG® Rewards Club Premier Credit Card, which offers some phenomenal benefits. The card offers an anniversary free night certificate valid at a property costing up to 40,000 points per night, a fourth night free redemption on awards, and more. Since I have the old IHG Card, I can stack the 10% off award redemptions offered by that with the fourth night free on award redemptions offered by this card.
Lastly, I need to decide what to do with The World of Hyatt Credit Card. I really want this card, and I guess I should probably just upgrade my existing Hyatt Credit Card to this, given that it offers elite nights.
I’m excited to almost be under 5/24, and in particular to be able to get the Ink Business Preferred® Credit Card and Ink Business Unlimited℠ Credit Card. Though to be honest, now I’m wondering if it was worth waiting in order to get these two cards. They’re both great cards, but beyond that I don’t think there are any other Chase cards that are subjected to 5/24 that are that interesting.
I also can’t wait to pick up some of the other cards I’ve been holding out for.
What do you think — is my strategy off? What would you do differently?
Non-Affiliate Product Disclaimer: The information for the Starwood Preferred Guest® American Express Luxury Card and Hilton Honors Aspire Card has been collected independently by One Mile at a Time. The card details on this page have not been reviewed or provided by the card issuer.