Credit card companies have been making changes lately to try and encourage profitable behavior and also cut down on the number of people applying for the same cards over and over. For example, American Express now restricts credit card bonuses to once in a lifetime, on both personal and business cards.
Last year Chase also instituted a new policy on their personal non co-brand credit cards (cards not issued in conjunction with another brand), like the Chase Sapphire Preferred® Card and Chase Freedom® Card. Specifically, Chase is generally no longer approving people for these cards if they’ve applied for more than five credit cards in the past 24 months. We’re not talking about five Chase cards in the past 24 months, but rather five cards of any kind.
The logic is likely that they assume those with more credit cards are more likely to be getting the cards just for the sign-up bonuses, and therefore are less likely to be profitable customers.
As reported by Doctor of Credit back in February, this 5/24 (five cards in 24 months) policy will apparently be extended to Chase’s co-branded credit cards as of April 2016. Of course this comes from an unnamed source so I can’t confirm it, though I wouldn’t be surprised if it’s true. I assume the timeline has the potential to change, though if you want to be on the safe side you’ll want to pick up these cards in the next couple of weeks.
Chase has some extremely compelling co-branded credit cards, and I most recently wrote about trying to decide between applying for the Marriott Rewards® Premier Credit Card and the British Airways Visa. If you’re in a similar boat and have applied for more than five credit cards in the past 24 months, I’d highly recommend applying soon.
Doctor of Credit notes that apparently Chase’s non co-branded business cards, including the Ink Business Preferred℠ Credit Card and Ink Business Cash℠ Credit Card are supposed to have similar restrictions as of this month. As far as I know that hasn’t happened yet, so if you’ve been eying one of those cards I’d consider applying sooner rather than later.
While it won’t impact the average consumer, those with a lot of credit cards will be negatively impacted by these changes. While we don’t know the exact date that Chase’s “five cards within 24 months” rule will be applied to business and co-brand cards, it’s likely to be soon. If you’ve been eying one of those cards, you’ll want to apply sooner rather than later.