All of the card issuers have different ways that they deal with people trying to “game” the system. Obviously card issuers want to encourage profitable behavior, so they do what they can to create policies that maximize the odds of that. There’s no doubt that by adding these restrictions they’re missing out on some potentially profitable customers, though there’s a balance there.
One of Chase’s restrictions is commonly referred to as the 5/24 rule, whereby Chase won’t approve you for many of their products if you’ve opened five or more new card accounts in the past 24 months.
What’s interesting is that up until now some Chase co-brand cards haven’t been subjected to this rule. So while cards like the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® Card have been subjected to the rule, some of Chase’s co-brand cards haven’t been.
The 5/24 restriction may be expanding
On Wednesday I attended a briefing in New York about The World of Hyatt Credit Card, which comes with some great perks. There were representatives from both Hyatt and Chase there, including Chase’s president of co-brand cards. Historically Hyatt’s credit card hasn’t been subjected to the 5/24 rule, and there were questions about whether or not that would change with the new card.
When answering this question, Chase’s president of co-brand cards said that while nothing is changing with the card right now (which suggests that 5/24 wouldn’t apply), Chase plans to expand the 5/24 rule to their entire portfolio of cards soon. We don’t have a timeline for when this will happen, and ultimately we don’t know if the implementation of this has already been set in motion, or if this is just something they’re hoping to do down the line. So this is something we could see within weeks, within months, or way further out. Only time will tell.
The three most popular credit cards not subjected to 5/24
The following three are the most popular Chase credit cards that aren’t subjected to 5/24:
- The World of Hyatt Credit Card, which has a $95 annual fee and can help you earn free nights and status with Hyatt (you can learn more about the card here)
- The IHG® Rewards Club Premier Credit Card, which has a $89 annual fee and offers an anniversary free night certificate, Platinum status for as long a you have the card, and more (you can learn more about the card here)
- The British Airways Visa Signature® Card, which offers 10% off select British Airways tickets, a Travel Together ticket when spending $30,000 on the card in a calendar year, and more (you can learn more about the card here)
My take on 5/24
Chase isn’t dumb. They have data on their customers, and they can easily determine the profitability of each customer. So I trust the 5/24 restriction as such is a sound business decision. Sure, in some cases they’re probably losing out on some potentially profitable customers, though in a majority of cases the customers who are above it may not be profitable. We don’t know for sure if this is the best possible restriction they could have in place, but I imagine it’s better for them than not having it.
Personally what I’d like to see is that they apply the 5/24 restriction to the welcome bonus, rather than to the acquisition of the card as such. In other words, let people above 5/24 get a card, but with no bonus. This is similar to what American Express does with their “once in a lifetime” bonus rule,” and that way people who want to put significant spend on the card aren’t locked out.
For now it seems to be “business as usual” for 5/24, including for The World of Hyatt Credit Card. However, expect the rule to be expanded sometime in the not too distant future, to the point that all Chase cards will be subjected to the rule.