My Post-5/24 Credit Card Application Strategy

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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:

See this post for details on how you can check your 5/24 status, and this post for details on how applying for credit cards can actually help your credit score.

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 UnlimitedSM 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.

Bottom line

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 UnlimitedSM 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?


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Comments

  1. I don’t see much value in staying under 5/24. Are 130K UR miles worth holding off on potentially 500K+ miles in sign up bonuses from other programs?

    Probably not.

  2. @ Lucky my experience with falling under 5/24 is it depends on when the CRA updates the account aged out. For me I fell under 5/24 on 8/30/17 and applied for the Sapphire Reserve on 9/2, but Experian hadn’t updated that information yet so I was denied. I called in to recon and argued my case that TU and EQ had already updated the info(I subscribe to EX so I get all 3). They asked if I was ok with them pulling one of those reports, I agreed and was approved then and there. EX didn’t update till 10/1

  3. @Lucky is there an end date for the increased bonuses for the Cash and Biz Unlimited cards?

    My wife will be under 5/24 on 9/29 and I thought I read the Unlimited would be ending the middle of September.

  4. I am trying to get under 5/24 and waiting it out right now, but to be honest, the Chase shut-downs scare the crap out of me. How do you know how many cards you can apply for before getting shut down? It feels a little bit like a game of Russian roulette.

  5. @lucky Do you carry all 21 cards with you at all time? What type of wallet or accessory do you use to carry so many cards?

  6. @ Ben — What JP said. Unless you are a newbie to this game, Chase is generally not worth bothering with. I am way better off constantly recycling Citi, AMEX, Barclay, and BofA, while picking up a randon new Chase product once every several years. One day it may be worth waiting for 5/24, but I seriously doubt it.

  7. I’m a tad ahead of you, Lucky, in that I fell under 5/24 last month. I’d been on this tortuous cc “diet” with the dream of getting the CSR. Now, here I am, and when I look at the card objectively, without the glare of the 100000 bonus, I don’t know that I get much out of it. Advice?
    (I did what you are doing, more or less, and got the Ink Unlimited as soon as I was under).

  8. I think you have been wise in holding off. I have both CIB cards, & they are critical components to maximizing business spend. Look at it this way – once you have them you’ll always have them & are free to apply for whatever moving forward. Your credit score has also certainly profited as well.

    I personally try & leave at least 1, 5/24 spot open, though, between my husband & myself to take advantage of limited Chase offers where we have to move fairly quickly (3x CFU; 60k WOH; Marriott Plat status with the RC – & those are only since April!).

  9. When I was under 3/24 after waiting 2 yrs, chase counted my bus preferred toward 5/24. I confirmed this w CSR.

  10. @Mbh — I’m in your position, too, waiting until next month to apply for the CSR that I’ve been coveting since it first became available. I questioned whether it was still worth it, but the kicker for me was that it would immediately increase the value of all of my existing UR points from 1.25 to 1.5 cents on the Chase portal. That’s more than $1,000 in value right there, making it worth the price to me.

  11. Lucky, have you tried applying thru a BRM for both cards? They can circumvent 5/24 for you, esp if you so close, & get you on your way yo other banks apps.

  12. I’m currently under 5/24 and will be 2/24 after August. Which 3 cards should I get in my Pro folio

  13. @ JP and Gene – Agree. I just picked up the CSR mainly to have a good card for TSA pre-check, Priority Pass and travel delay and regularly spend the $300 for the travel credit. Seems most Chase hotel and airline branded cards are not part of the 5/24 rule. Wanted CSR so don’t have to worry about any other card subject to 5/24 rule if that becomes an issue.

    @ Lucky. Like plan for Hyatt and Hilton card. Both pay for themselves with free nights. SPG AMEX would be last on list.

    Question: 1) Which Chase cards are not subject to 5/24 rule? All Chase hotel and airline branded cards?
    2) Can one have both the old and new Marriott cards as well as the
    IHG card? Really debating whether to hold on to 2 cards for each. I know it’s extra nights but do want doing an extra card of each to muck up other card pickups.

  14. @Mbh – If you “don’t know that you get much” out of the CSR, the single most compelling credit card in the game, then you are probably in the wrong game…

    …with the caveat that it is all YMMV, of course.

  15. mbh – I’m using the CSP a lot now on a trip. I’d love to be earning 3x on dining and travel instead of 2x. I’m well over 5/24, so I will have to somehow upgrade one of my existing Chase cards to if I want the CSR.

    Lucky, you should look more into Hilton. I’m enjoying a nice reward stay in a Hilton now and have had the option to redeem in Waldorf Astoria, Conrad and other luxury hotels at good rates.

  16. Two of my “5/24’s” are additional user on my domestic partner’s card as I was not aware these counted against me. As domestic partner’s we have different last names but do have same mailing address. Has anyone had any luck documenting this and getting reconsideration to not count them

  17. @David L – You can’t have both ‘old’ and ‘new’ Marriott credit cards. You can only have either one or the other.

  18. Hi everyone,

    I have a CSR, Unlimited, Unlimited Freedom, Hyatt (old one), and IHG (old one). These are the only 5 credit card’s I’ve ever opened and had CSR since January of 2016.

    I applied for United Explorer and was rejected due to 5/24. What the?!?!

    Anyone else had this experience?
    -Ryan

  19. @lucky,

    I thought you were a chase private client if so I believe the 5/24 rule doesn’t apply unless they dropped that. But good strategy none the less.

  20. Hi Lucky –
    I’m in pretty much the same boat (mid September I’ll be under 5/24). Looking forward to sending that Chase application on Oct 1!

  21. Ink Cash, United Biz, United Personal and another Sapphire (if it’s been 24 months w/ a referral) all seem like no brainers as well.

    Agree on the top two and order though.

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