Difference between revisions of "Chase 5/24 rule"

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{{DISPLAYTITLE:{{Title|Chase 5/24}} (2018)}}
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{{DISPLAYTITLE:{{Title|Chase 5/24}} (2021)}}
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{{#seo:|description=Optimize your credit card strategy and signup bonuses based on the Chase 5/24 rule.}}
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{{seo|description=Optimize your credit card strategy and signup bonuses based on the Chase 5/24 rule.}}
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{{Page|article|Card Strategies}}  
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{{Page|article|before application|first signups}}  
  
 
{{Image|Chase524.jpg|full}}  
 
{{Image|Chase524.jpg|full}}  
  
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Chase has some of the best travel and reward credit cards available. However, they have an approval policy that can make it hard to get many of these cards.  
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Many of the best travel and reward credit cards come from Chase and Bank of America. Unfortunately, because they both have hard caps on how many new cards you can get, you may need to take special steps to get approved for their cards. You'll often hear the Chase rule referred to as the "5/24 rule".  
  
 
<blockquote>
 
<blockquote>
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Chase won't approve your credit card application, regardless of your credit score or income, if you’ve already signed up for 5 new credit cards, during the last 24 months.
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If you’ve already gotten 5 or more credit cards during the previous 24 months, Chase won't approve your credit card application (regardless of your credit score or income).
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Bank of America has a similar rule for people who have gotten 3 or more credit cards in the past 12 months, although the limit rises to 7 for people who have a BOA banking relationship.  
 
</blockquote>
 
</blockquote>
 
   
 
   
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They don’t just count cards you received from Chase. They count all the (personal) cards you’ve received from any credit card company, and even include cards for which you were simply added as an authorized user. This is widely referred to as the Chase “5/24” rule.  
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They don’t just count cards you received from Chase of Bank of America. They count all the (personal) cards you’ve received from any credit card company and even include cards for which you were simply added as an authorized user.  
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If you are following our advice, you are about to start applying for a set of new credit cards—to take advantage of their travel benefits, signup bonuses, and/or reward earning rates. Once you hit the these limits, you won’t be able to be approved for ANY Chase cards or personal Bank of America cards.
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'''As a result, we recommend that everyone sign up for these cards first, and only after hitting the limit, continue on to other cards.'''  Getting Bank of America cards is less critical for their banking customers (who have the higher 7/12 limit).
  
 
{{TOC}}
 
{{TOC}}
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*[[#Because of the Chase 5/24 rule, you need to get certain Chase cards first|You need to get certain Chase cards first]]
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*[[#Business credit cards usually don't count|Business credit cards usually don't count]
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*[[#Our recommended strategy|Our recommended strategy]]
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*[[#Maximize your slots|Maximize your slots]]
 
*[[#Strategies to continue qualifying for the Southwest Companion Pass|Strategies to continue qualifying for the Southwest Companion Pass]]
 
*[[#Strategies to continue qualifying for the Southwest Companion Pass|Strategies to continue qualifying for the Southwest Companion Pass]]
 
*[[#Possibilities for bypassing the rule|Possibilities for bypassing the rule]]
 
*[[#Possibilities for bypassing the rule|Possibilities for bypassing the rule]]
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*[[#Advanced 5/24 strategies|Advanced 5/24 strategies]]
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*[[#Getting under Chase 5/24 again|Getting under Chase 5/24 again]]
 
{{/TOC}}
 
{{/TOC}}
  
 
{{Main|article}}
 
{{Main|article}}
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=== Because of the Chase 5/24 rule, you need to get certain Chase cards first ===
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=== Business credit cards usually don't count ===
  
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If you are following our advice, you are about to start applying for a set of new credit cards—to take advantage of their travel benefits, signup bonuses, and/or reward-earning rates. Once you hit the 5 card limit, you won’t be able to be approved for any of the Chase cards that are affected by the “5/24” rule.  
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Business credit cards can help you partially get around the Chase 5/24 and Bank of America rules.  
  
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<blockquote>
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<ul class="bulletlist">
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As a result, we recommend that everyone sign up for these Chase cards first, and only after hitting the limit, continue on to other cards.
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<li>'''Business credit cards usually don't count against the limits'''. Even though your personal credit report is used to approve you for new business cards, once you get them, most business cards aren't listed on your credit report and won't be counted towards the limits. Chase and Bank of America don't even count their own business cards, even though they obviously know that you have them.</li>  
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</blockquote>
 
  
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For example, if you’ve gotten two new cards in the past two years, you’ve still got room for three of the Chase cards that are affected by this rule. If you haven’t signed up for any new cards, you’ve got room for five. Keep in mind, that you can only apply for two of these cards in any 30-day period, but you will probably want to go slower than that.  
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The main exceptions are cards from Discover and Capital One (except the Spark CASH card) and some smaller banks, which do wind up getting reported on your personal report. You can check detailed information on [//www.doctorofcredit.com/which-business-credit-cards-report/ Doctor of Credit].
  
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Once you’ve hit the 5 card limit, double-check to see if you have any cards that you acquired nearly two years ago. If you do, you can wait a couple of months, get back under the 5 card limit, and apply for an additional affected card(s). If you want to know the exact number of newer cards you have on record, you can {{Link|Credit Score|check your credit report}}.
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<li>'''As a result, you are free to get as many business cards as you want, without affecting your Chase 5/24 or Bank of America 3/12 or 7/12 status'''. That means that you can start taking advantage of cards from other banks before you finish getting all the Chase and Bank of America cards you want. For example, you could get the business version of the Delta Airlines card to start taking advantage of its checked bag benefit without using up one of your Chase and Bank of America "slots".</li>
  
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=== Our recommended strategy ===
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<li>'''Most people are eligible to get small business cards'''. As long as you have any type of side business (like selling stuff on eBay or doing some independent contracting), you are entitled to sign up for small business credit cards. You don't need to be incorporated and, in most cases, you don't even need to have made any money yet. {{Link|Business Cards}}.</li>
  
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We can’t stress this enough: The Chase cards have such good signup offers (and in many cases, ongoing benefits), that you don’t want to unnecessarily lose the opportunity to obtain them. Before you get any almost any other non-business credit cards, you should get as many of the affected Chase cards as you can. The only exception is you really want another card, such as the {{Card|Altitude|only}} or {{Card|Venture|only}} that is very hard to get once you've started signing up for other cards.  
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<li>'''You need to get any Chase business cards BEFORE you hit the 5/24 limit'''. The way that Chase handles their own small business cards is confusing. If you have gotten 4 or fewer new cards over the past 24 months, you can apply for Chase small business cards and your 5/12 count won't change. But as soon as you get a 5<sup>th</sup> card, you'll no longer be able to get any Chase cards, even the business ones. In other words, even though the United Business Explorer and Chase Ink Preferred card don't count against the limit, as soon as you hit 5/24, you won't be able to get them.</li>
  
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{{Box|The 5/24 Rule is Coming to More Cards}}
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It is different with Bank of America. Their 3/12 or 7/12 limit only affects their personal cards, so you can still apply for their small business cards after you've hit the limit.  
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According to current rumors, Chase is planning to eventually apply the 5/24 rule to all of their credit cards (not just the card that are currently affected by the rule). As more cards are affected, the prioritization of which cards to get will change. We will update this guide as the list of affected cards changes.
 
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{{/Box}}
 
  
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==== Step 1: Apply for any “critical” Chase 5/24 cards ====
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<li>'''It is often better to get the business version of a card (if one is available)'''. If you are under the Chase's or Bank of America's limit, it won't use up any of your slots and you'll have the flexibility to take advantage of any Chase or Bank of America cards you may want later. If you over the limits, it may let you get back under them more quickly.</li>
 +
</ul>
  
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The 5/24 rule doesn’t affect every Chase card. However, it affects most of their more attractive cards, specifically all their Ultimate Rewards (Sapphire, Freedom, Ink), Southwest Airlines, and United Airlines cards, and the personal version of their Marriott card.
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=== Maximize your slots ===
  
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You almost certainly want to make more than one of these cards part of your core credit card collection. While we’d love to be able to just tell you which of these cards to make sure to get, the right answer for each person can be different, based on the way you travel.  
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Since Bank of America and especially Chase have so many good credit cards, you'll want to get as you can before you hit these limits. Avoid signing up for other personal cards, until after your finished getting the Chase and Bank of America cards you want.  
  
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{{List|card}}
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<ol>
 +
<li>'''Figure out how many remaining "slots" you have'''. You may need to look at your credit report, but try to figure out how many personal credit cards you've signed up for in the last 12 and 24 months, including cards where you are only an "authorized cardholder". For example, if you've signed up for a single personal card in the last year and another in the year before that, you have room for three more personal credit cards before you hit the Chase 5/24 limit, but only two more cards before hit the Bank of America 3/12 limit. {{Link|Credit Score}}.</li>
  
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{{CardItem|SWAPremier}}
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Depending on the timing of your previous cards, new slots might be opening up soon, and you may get more room to open additional cards before you hit the limits.
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'''If you want to get the Southwest Companion Pass, you need to prioritize signing up for (ideally two) Southwest Airline card(s)'''. Depending on your travel patterns, the Southwest Companion Pass can be the most lucrative deal in travel hacking. It allows a second person to fly for free, on every paid and every award flight on Southwest Airlines. You can use it as many times as you like. If you are a couple, with the inclination and time to frequently jet around the country, getting the pass lets you travel at essentially half-price. On the other hand, many other travelers can’t get that much value from the pass, either because they frequently fly by themselves, or don’t have an opportunity to fly on Southwest very often.
 
  
−
For many people, the only realistic way to get the pass is by signing up for (ideally two) Southwest Airlines credit cards. Signup bonuses can vary, but are typically around 40-60,000 points. If you apply for two cards, and earn their signup bonuses, you’ll be near (or over) the number of points that entitles you to the pass. You’ll also be earning points worth around $3,200 of Southwest Airline flights—$1,600 for you to buy tickets, with $1,600 worth of free tickets for your companion. {{Link|Companion Pass}}.
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<li>'''Prioritize which affected cards to get'''. You need to decide the best use of your remaining slots. You may not have room to get all the cards you want. Perhaps you want to make sure to get a United Airlines card, the Hyatt card, a Sapphire card, and an Unlimited card. The mix of cards will be different for each person depending on where they live and how they travel. </li>
  
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If you want to pursue this strategy, you (or your partner) need to have room for a Chase 5/24 card. You are only supposed to be able to have one of the personal versions of the Southwest Airlines card at any one time (and only earn one signup bonus every two years). As a result, the easiest approach, if you qualify, is to signup for the business version of the card, and then one of the personal versions. However, some people have reported being able to sign up for two different personal versions of the Southwest card on the same day, and earning the signup bonuses from both cards. A third, and less desirable option, is to only sign up for only one card, and try to earn the rest of the points in other ways. All three approaches only require a single Chase 5/24 slot.  
+
You may also need to make room for any critical Barclays, Capital One Wells Fargo, and U.S. Bank cards you really want. While they don't have hard rules, it can be hard to get approved by those bank once you've had a bunch of recent applications.  
  
−
{{CardItem|United}}
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<li>'''If you are willing and able to get business cards, you can mix these in at any time'''. Prioritize signing up for any business cards that have useful benefits, so you can start using them as quickly as possible. </li>
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'''If you frequently fly United, you’ll want to make sure to get the United card, to get access to free checked bags and other benefits'''. If you fly on United a lot, and you check bags, you can save some serious cash by getting and keeping the United credit card—it lets you and a companion avoid the fee on your first checked bag.  It is also useful for people who frequently fly United, because cardholders get increased availability for both “anytime” and “saver” award redemptions.  
 
  
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{{CardItem|InkPreferred}}
+
<li>'''If you have any leftover slots available, use them to get the Chase and Bank of America cards with the best possible signup offers'''. You won't be able to get these cards later, but you will still be able to get cards from most other banks.</li>
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'''If you are entitled to a small business card, you probably want to get one or both of the Ink Preferred and Ink Cash cards'''. If you have any size business, you are entitled to sign up for small business cards, as well as personal cards. This is true even if you have another full-time job, or haven’t made any money yet. Chase offers some of the best options. The Ink Preferred card earns 3x points on travel, shipping, telecom services, and advertising. When used alongside a Sapphire or Ink Preferred card, the Ink Cash card earns 5x points on telecom services and office supply stores. {{Link|Business Cards}}.
 
  
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The good news here, is that while you can't get these cards if you are above the 5/24 limit, getting either or both these cards doesn't block your ability to get additional affected cards, because (as business cards) they don't count against the limit of five cards. But, you still need to make sure to apply for these before you hit the 5/24 limit.  
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<li>'''Make sure to get any Chase business cards before you hit the 5/24 limit'''. You don't need to get them right away, but you do need to get them before you apply for your 5<sup>th</sup> personal card in the last 24 months. You can get other business card signup offers either before or after you hit the 5/24 limit.</li>
 +
</ol>
  
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{{CardItem|FreedomUnlimited}}
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Once you've figured out which cards to get, you can get them in an order, as long as you're finished once you hit the limit. If your credit utilization is high, you might want to get a few personal cards first to improve your credit score.  
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'''Almost everyone should get the Sapphire Reserve and one of the Chase Unlimited cards, to earn the highest reward rates on much of their spending'''. These cards work together to earn the most valuable rewards on travel and restaurant spending, and for any spending that doesn’t fit into a bonus category. Most people will want the Freedom Unlimited card. But, if you are entitled to business cards, and willing to use one for your everyday spending, the Ink Unlimited card is the better option, and won't take up an additional slot. {{Link|general purpose}}.
 
  
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{{CardItem|SapphireReserve}}
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If you are planning on collecting signup offers, you can view detailed plans on how to proceed.
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'''You’ll also get valuable travel benefits from the Sapphire Reserve card''', like airport lounge access and primary rental car insurance. {{Link|premium cards}}
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<center>{{Tile|first signups}}</center>
  
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If you have room for these two cards, you should almost certainly get them before moving on.
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{{Box|Timing Your Applications}}
 +
Chase limits you to a maximum of two new credit cards every month, but we wouldn't recommend getting more than one card per month or two. The faster you expand the amount of your credit with Chase, the more nervous Chase might get that you are going to become a credit risk. Mix in any any Bank of America, business, or other high-priority cards to slow down the speed at which you sign up for Chase cards.  
 +
{{/Box}}
  
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{{CardItem|Freedom}}
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=== Strategies to continue qualifying for the Southwest Companion Pass ===
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'''The Chase “Freedom” card is interesting, but you are probably better off getting another card instead'''. The “Freedom” card is a different card than the “Freedom Unlimited”. It earns 5x points on purchases made in a set of categories that change every quarter; which is an incredible earning rate, since the points are worth around {{Value|ur}} cents each. These rewards, however, are capped at $1,500 of spending per quarter, so you can earn up to 30,000 points per year. It can take a bit of effort to use this card effectively, and you are probably better off just signing up for different Chase card instead, and just collecting the signup bonus. Then, you can always convert that card to a Freedom card later. {{Link|Rotating Category}}.
 
  
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{{CardItem|Marriott}}
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If you qualify for a Southwest companion pass by earning your signup bonuses towards the beginning of the year, you will have access to the pass for almost two years.  
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'''If you really want to maximize the number of Marriott / SPG free night certificates each year, you'll want to prioritize the Marriott card'''. Every year, after your anniversary, it provides a certificate that can be used for room nights that would cost 35,000 points per night. However, you can get these certificates from several other cards that wouldn't take up a Chase 5/24 slot, such as the SPG card, SPG business card, SPG luxury card, and Marriott business card. But, if you want to maximize the number of certificates you earn each year, you would want this card as well. In general, we would recommend using your slots for likely more valuable other options.  
 
  
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{{/List|card}}
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When the pass expires, most people will want to re-qualify for it. But to do that, you’ll need to be under the Chase 5/24 limit.
  
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This will typically add up to 1-4 personal cards, and potentially a bunch of Chase business cards.
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<ul class="bulletlist">
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<li>'''The simplest approach is to have one person stick to a smaller number of cards'''. Every two years, each person is eligible for a total of 5 personal cards. Assuming they are willing and able to get business cards, one person can get 5 personal cards, both Southwest business credit cards, and whatever other business cards they want, every two years. </li>
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==== Step 2: If (somehow) you haven’t reached the limit yet, apply for the affected Chase cards with the highest signup bonuses ====
 
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After you get any of the affected Chase cards, that you want to make a part of your core credit card collection, you will often be out of space for any additional Chase “5/24” cards. However, if you do have some space leftover, you should apply for whichever of the remaining affected Chase cards have the best signup offers. If you start signing up for other cards instead, you won’t be able to go back, and get these excellent signup bonuses later.
 
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This list shows the “normal” signup bonuses for each card. Promotions are sometimes available, which may temporarily make one of the cards a more attractive option. {{Link|Promotional Offers}}.
 
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{{List|card}}
 
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{{CardItem|InkPreferred}}
 
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'''Ink Preferred: 80,000 Ultimate Reward points'''. This is the most valuable standard signup offer available from Chase. If you qualify for a small-business card, it should be your first choice after getting your must-have Chase cards, even if you don’t value its extra benefits. Requires $5,000 initial spend (over 3 months). $95 annual fee.
 
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{{CardItem|InkUnlimited}}
 
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'''Ink Unlimited: 50,000 Ultimate Reward points'''. Chase advertises the signup bonus as $500, but you'll actually receive 50,000 Ultimate Reward points. If you have the Sapphire Reserve, Sapphire Preferred, or Ink Preferred card, you can transfer these points to airline and hotel partners, or get more than 1 cent per point when you use them to purchase travel through Chase. Requires $3,000 initial spend. No annual fee.
 
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{{CardItem|SapphirePreferred}}
 
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'''Sapphire Preferred: 50,000 Ultimate Reward points'''. This is the best pure signup bonus from any of their personal cards. Unlike the Sapphire Reserve, there is no first-year annual fee, and you can get an extra 5,000 points by adding an authorized cardholder.
 
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However, you can no longer have both this card and the Sapphire Reserve at the same time, so if you wanted the Sapphire Reserve for its ongoing benefits, you'll need to pass on the Sapphire Preferred's signup bonus.
 
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50,000 Ultimate Reward points are worth $600-750 when redeemed like cash, $750-1000 (or more) when redeemed for hotels, and potentially much more when redeemed for flights. To earn the bonus, you'll need to spend $4,000 in the first three months.
 
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{{CardItem|SapphireReserve}}
 
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'''Sapphire Reserve: 50,000 Ultimate Reward points'''. Since you can't collect the signup bonuses from both Sapphire cards, if you want the added benefits of the Sapphire Reserve card, you'll need to "settle" for only 50,000 points, rather than getting some additional points, with a lower out-of-pocket expense with the Sapphire Preferred card. That said, some people have reported that if you sign up for both the Sapphire Reserve and the Sapphire Preferred on the same day, you can get approved for both cards, and earn both signup bonuses.
 
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{{CardItem|swapremierbiz}}
 
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'''Southwest Business: 60,000 Southwest Airlines points'''. These points are valued at {{Value|southwest|60000}}.  $3,000 initial spending requirement. $99 annual fee.
 
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{{CardItem|Marriott}}
 
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'''Marriott: 100,000 Marriott points'''.  These points are valued at {{Value|Marriott|100000}} and can easily be used for Marriott / SPG hotel rooms or converted into up to 41,666 airline miles with a larger number of different frequent flyer programs. $3,000 initial spending requirement in the first 3 months. $95 annual fee. If you qualify for small business cards, you can get the business version of this card, without taking up one of your slots. But since the business version isn't affected by the Chase 5/24 rule, you could get it later, as well.
 
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{{CardItem|swaplus}}
 
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'''Southwest Personal: 40,000 Southwest points'''. If you fly Southwest periodically, this works out to about $600 towards flight purchases. The Plus card is a better deal with a $69 annual fee, versus $99, and the same $1,000 initial spending requirement (in first 3 months). Like the Sapphire cards, you are only supposed to have one of the personal Southwest airlines cards at a time, and can only earn one bonus every 24 months. However, some people have reported being able to sign up for both cards in the same day, and earn both signup bonuses.  
 
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{{CardItem|United}}
 
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'''United Explorer: 40,000 United miles'''. You can use these on a variety of partner airlines, even if you don’t fly United. So, they are more flexible than Southwest Points, but you will need to find available awards space first You need to spend $1,000 in the first 3 months. The annual fee is $95, but it is waived the first year, and if you are only getting it for the signup bonus, you won’t keep it longer than that. If you qualify for small business cards, you can get the business version of this card, without taking up one of your slots. (But, once you hit the limit, you won't get approved for the business version of the card.) 
 
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{{/List|card}}
 
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==== Step 3: Fit in the best remaining “Perks” cards ====
 
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After you’ve hit the limit for your Chase “5/24 cards”, you are ready to get any unaffected cards, from Chase or other credit card companies, that you want to make part of your core credit card collection.
 
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The only exception would be for a potential travel benefit that is extremely valuable to you. For example, if you could save hundreds of dollars with the Citi Prestige's 4<sup>th</sup> night free benefit, by getting the card earlier, it may be worth missing out on one of your potential Chase 5/24 slots. You have to trade off the value of having access to the benefit, while you are still under the 5/24 limit, versus the value of being able to get an additional valuable Chase card or signup bonus.
 
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==== Step 4: Collect the best remaining “sign-up” bonuses ====
 
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Then, you can continue to get additional cards, just to take advantage of their signup bonuses. {{Link|Best Offers}}.
 
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{{Box|Avoiding Other Chase Cards Once You've Signed Up for a Lot of Cards}}
 
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While many of Chase's best cards are affected by the Chase 5/24 cards, some of its other cards, such as the Hyatt, IHG, and British Airways cards, are not. As a result, you can sign up for these other cards after you've hit the 5/24 limit.
 
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However, if you've been signing up for lots of cards in a relatively short period of time (across all of the credit card companies), in order to collect a lot of signup bonuses, there is some risk in trying to sign up for one of these other Chase cards. As part of processing your application, there is a small risk that Chase will decide that your large number of new cards and/or inquiries makes you a risk, and they will cancel all of your existing cards. This hasn't happened to many people, but it has happened to some.
 
  
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To play it safe, if you want a couple of these cards, get them before you've signed up for many other cards, and don't try to sign up for every possible Chase card as fast as you can. Then, don't apply for new Chase cards, unless you wind up slowing down your credit card applications in the future.  
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With just personal cards, one person would need to reserve one of the 5 slots every two years for one of the Southwest cards and earn the remaining companion pass qualification requirements through other earning options.  
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{{/Box}}
 
  
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=== Strategies to continue qualifying for the Southwest Companion Pass ===
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The other person doesn’t need to worry about the signup limit and can get as many cards as they want.
  
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If you qualify for a Southwest companion pass, by signing up for your Southwest Airline cards towards the beginning of the year, you will have access to the pass for almost two years. The pass is good till the end of the year following when you qualify for it. When the pass expires, you are going to want to re-qualify. But to do that, you’ll need to be under the Chase 5/24 limit, so that you can reapply for the cards.  
+
<li>'''The skip-a-year method'''. Under this approach, you get all the credit cards which are most important to you, including the Southwest Airlines cards, during the first year. That way, you can be sure to get all the cards you want for your core credit card collection and collect all the best signup offers. Then, you stop signing up for new credit cards.</li>
  
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<ul class="bulletlist">
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A year later, your Southwest pass will expire, but you won’t be able to immediately re-qualify. About two years after you finished your initial burst of signup activity, you’ll back under the limit and will be able to apply for the Southwest Airlines cards again. Depending on how quickly you acquired the other cards you want, you may only need to live without the pass for 12-18 months.
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<li>'''The simplest approach is to have one person stick to a smaller number of cards'''. Every two years, they are eligible for a total of 5 personal cards. As long as you sign up for the Southwest Business card first, you can get the Southwest personal card, as well as four other personal cards over every two year period. The other person doesn’t have to worry about the sign-up limit, and can sign up for as many cards as they want.  </li>
 
  
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<li>'''The skip-a-year method'''. Under this approach, you get all the credit cards which are most important to you, including the Southwest Airlines cards, during the first year. That way, you can be sure to get all the cards you want for your core credit card collection, and collect all the best signup offers. Then, you stop signing up for new credit cards. A year later, your Southwest pass will expire, but you won’t be able to immediately re-qualify. Then, about two years after you finished your initial burst of sign-up activity, you’ll back under the limit, and will be able to apply for the Southwest Airlines cards again. Depending on how quickly you acquired the other cards you want, you may only need to live without the pass for 12-18 months.</li>
+
And if you are willing and able to get business cards, you can get those at any point in the process.  
 
</ul>
 
</ul>
  
 
=== Possibilities for bypassing the rule ===
 
=== Possibilities for bypassing the rule ===
  
−
While is almost impossible to get approved for the affected cards, if you are over the 5/24 limit, it is not completely impossible.  
+
If you are over the 5/24 limit, it is almost, but not completely, impossible to get approved for Chase cards.
  
 
<ul class="bulletlist">
 
<ul class="bulletlist">
−
<li>'''If you are “pre-approved” in-branch, you will usually get approved for the card, even if you are over 5/24'''. You need to ask your banker to see if you are pre-approved for any cards, and fill out the application in the branch. Just be aware that there isn’t a high likelihood that you will qualify for any pre-approved offers for these cards.</li>  
+
<li>'''If you are “pre-approved” in-branch, you will usually be able to get the card, even if you are over 5/24'''. You need to ask your banker to see if you are pre-approved for any cards and you need to fill out the application in the branch (not online). Just be aware that if you are over 5/24, there is a very low likelihood that you'll have any pre-approved offers.</li>  
  
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<li>'''If you have a more significant business, you may be able to get approved for additional cards, even if you are over the limit'''. You will need to have your own “Business Relationship Manager”, and fill out a paper-based application form. For this to work, you usually need to be doing a significant amount of business-related banking with Chase.</li>  
+
<li>'''Other pre-approved offers'''. On the "Offers for You" section of the Chase website, you may see credit card offers that are marked with a green star and "Already Approved" or a black star and "You're pre-qualified". If these offers state a fixed APR, not a range of percentages, they will bypass the normal 5/24 limits. If you use the United mobile application and you see a pre-qualified offer for the United Explorer card with a fixed APR, it should also bypass the 5/14 limits. Any other Chase offer, where it seems like you are pre-qualified or already approved, including all offers with an adjustable APR, will NOT bypass the limits.</li>  
  
−
<li>'''Being a Chase Private Client no longer exempts you from the rule'''. During the earlier days of the Chase 5/24 rule, Chase didn’t always apply the rule to its best customers. If you were a Chase Private Client, your application might still get approved, or you could wind up getting up approved by having your personal banker help you with the reconsideration process. While anything is possible, this is no longer working for most people.</li>
+
<li>'''If you have a more significant business, you may be able to get approved for more cards'''. You will need to have your own “Business Relationship Manager” at Chase and it will only work if you fill out a paper-based application form.</li>
 +
 
 +
<li>'''Being a Chase Private Client no longer exempts you from the rule'''. During the earlier days of the Chase 5/24 rule, Chase didn’t always apply the rule to its best customers. If you were a Chase Private Client, your application might still have gotten approved or you could have gotten approved by having your personal banker help you with the reconsideration process. While anything is possible, this has stopped working.</li>
 
</ul>
 
</ul>
  
−
=== Advanced 5/24 strategies ===
+
=== Getting under Chase 5/24 again ===
  
 
Our basic approach to the Chase 5/24 rule is simple. Sign up for as many affected cards as you can, move onto other cards, and don’t look back.
 
Our basic approach to the Chase 5/24 rule is simple. Sign up for as many affected cards as you can, move onto other cards, and don’t look back.
  
−
Until Chase gets rids of the policy, or you slow-down, you won’t be getting any additional affected cards. But, if you are willing to deal with some complexity, you can optimize this further.  
+
<blockquote>
−
 
+
But if Chase cards are extremely important to you, you can use a one-year-on, two-years-off strategy.
−
<ul class="bulletlist">
+
</blockquote>  
−
<li>'''If you are at 4 cards, you can probably be approved for 2 additional Chase cards, as long as you apply on the same day'''. This allows you to sneak-in an additional affected card. Apply for the card you want more first.  Then apply for an additional card later that same day.  There is a limit of 2 new Chase cards every 30 days, so you need to make sure at least 30 days have passed since you were approved for your previous card.</li>  
 
  
−
<li>'''Most business credit cards don’t count towards your Chase 5/24 limit'''. Credit card companies usually look at your personal credit report when deciding whether to give you a small-business card. But once you get the card, it usually won’t be listed among the open accounts on your personal report. So, when Chase looks at your credit report, they won’t see (most of) the small-business cards that you’ve already signed up for.  To see the best information about whether a card will show up or not, check [//www.doctorofcredit.com/which-business-credit-cards-report/ Doctor of Credit’s List].</li>
+
With this approach, you go crazy with credit cards signups and then go (close to) cold turkey (with personal cards) for two years. At the end of your two-year abstinence, you can sign up for another set of Chase cards again, then a bunch of other credit cards, and then possibly go cold-turkey again.
  
−
<ul>
+
During the two “down years”, you can always sign up for a particularly amazing or useful card. You’ll still get under the 5-card limit around the same time. You'll just wind up having room for one less Chase card, when you do. And you can still sign up for as many business cards as you want the entire time.  
−
<li>'''You can sign up for affected Chase business cards (Ink, Southwest, United) before you hit 5/24, and they shouldn’t count against your limit'''. This lets you squeeze in extra Chase 5/24 cards. Even though Chase obviously knows that you signed up for these cards, most people report that they don’t count against the 5-card limit. This can be confusing, because you can’t get these cards if you have already gotten 5 cards, but getting this card earlier doesn’t count as one of those 5. There are some conflicting reports, so don’t be too upset, if they wind up counting against your 5-card limit</li>
 
  
−
<li>'''If you are trying to stay or get back under 5/24, you don’t need to worry about signing up for (most) business cards'''. As soon as you drop below 5 personal cards in the last 24 months, you are re-eligible to get another Chase 5/24 card. To repeat, you can get as many business card as you want, from almost any bank, without affecting your Chase 5/24 status. </li>
+
Also, there is no hard and fast rule about how long your active period should be. You could limit it to six months, so you can get Chase cards every 2.5 years; or you can lengthen it out to 2 years and get a set of Chase cards every four years.
−
 
 
−
<li>'''To increase your flexibility of signing up for Chase offers, you focus on business cards first, even before getting all the affected Chase cards that you want'''. Since business cards generally won't be listed on your credit report, you'll stay under the 5/24 limit. This allows you to sign-up for one of the affected Chase cards if a particularly good opportunity comes along; or if your plans change. Until you've started running out of business credit cards to apply to, or you need more than one or two non-Chase personal cards for other reasons, you can postpone getting the personal cards from Chase (or any other bank). </li>
 
−
</ul>
 
−
 
 
−
<li>'''If Chase cards are extremely important to you, you can use a one-year-on, two-years-off strategy'''. With this approach, you go crazy with credit cards sign-ups, and then go close to cold-turkey for two years. At the end of your two-year abstinence, you can sign-up for up to a set of Chase cards again, then a bunch of other credit cards, and then possibly go cold-turkey again.</li>
 
−
 
 
−
During the two “down years”, you can always sign-up for a particularly amazing or useful card. You’ll still get under the 5-card limit around the same time. You just will have room for one less Chase card, when you do. And, you can still sign-up for business cards the entire time.
 
−
 
 
−
Also, there is no hard and fast rule about how long your active period should be. You could limit it to six months, so you can get Chase cards every 2.5 years; or you can lengthen it out to 2 years, and wait to get Chase cards every four years.
 
−
 
 
−
<li>'''It MAY still be possible to earn the signup bonuses for both versions of the Sapphire card and/or both personal versions of the Southwest Airline cards'''. Chase's official rule is that you can only have one Sapphire card and one personal Southwest Airline card at any one time, and can only earn one Sapphire card bonsu every 48 months, and one personal Southwest card bonus every 24 months. However, some people have reported being able to sign up for both Sapphire or both Southwest cards on the same day, and earn the bonuses from both cards.
 
−
</li>
 
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You are still subject to Chase's 2/30 rule, so make sure you haven't signed up for any Chase cards in the last month. According to an excellent post on [//www.reddit.com/r/churning/comments/837eq3/faq_credit_card_recommendation_flowchart/ Reddit], wait to get approved for the first card (if you aren't immediately approved called the reconsideration line at 888-270-2127), then apply for the second card in a different browser. The post suggests "starting early in the day, on a non-holiday weekday".
 
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Latest revision as of 20:29, 18 February 2021

  Step-by-Step Guide: Before You Apply, Which Signup Bonuses to Get First

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Many of the best travel and reward credit cards come from Chase and Bank of America. Unfortunately, because they both have hard caps on how many new cards you can get, you may need to take special steps to get approved for their cards. You'll often hear the Chase rule referred to as the "5/24 rule".

If you’ve already gotten 5 or more credit cards during the previous 24 months, Chase won't approve your credit card application (regardless of your credit score or income).

Bank of America has a similar rule for people who have gotten 3 or more credit cards in the past 12 months, although the limit rises to 7 for people who have a BOA banking relationship.

They don’t just count cards you received from Chase of Bank of America. They count all the (personal) cards you’ve received from any credit card company and even include cards for which you were simply added as an authorized user.

If you are following our advice, you are about to start applying for a set of new credit cards—to take advantage of their travel benefits, signup bonuses, and/or reward earning rates. Once you hit the these limits, you won’t be able to be approved for ANY Chase cards or personal Bank of America cards.

As a result, we recommend that everyone sign up for these cards first, and only after hitting the limit, continue on to other cards. Getting Bank of America cards is less critical for their banking customers (who have the higher 7/12 limit).


Jump to


Business credit cards usually don't count

Business credit cards can help you partially get around the Chase 5/24 and Bank of America rules.

  • Business credit cards usually don't count against the limits. Even though your personal credit report is used to approve you for new business cards, once you get them, most business cards aren't listed on your credit report and won't be counted towards the limits. Chase and Bank of America don't even count their own business cards, even though they obviously know that you have them.

    • The main exceptions are cards from Discover and Capital One (except the Spark CASH card) and some smaller banks, which do wind up getting reported on your personal report. You can check detailed information on Doctor of Credit.

  • As a result, you are free to get as many business cards as you want, without affecting your Chase 5/24 or Bank of America 3/12 or 7/12 status. That means that you can start taking advantage of cards from other banks before you finish getting all the Chase and Bank of America cards you want. For example, you could get the business version of the Delta Airlines card to start taking advantage of its checked bag benefit without using up one of your Chase and Bank of America "slots".
  • Most people are eligible to get small business cards. As long as you have any type of side business (like selling stuff on eBay or doing some independent contracting), you are entitled to sign up for small business credit cards. You don't need to be incorporated and, in most cases, you don't even need to have made any money yet. Unlock Extra Reward Points with Business Credit Cards.
  • You need to get any Chase business cards BEFORE you hit the 5/24 limit. The way that Chase handles their own small business cards is confusing. If you have gotten 4 or fewer new cards over the past 24 months, you can apply for Chase small business cards and your 5/12 count won't change. But as soon as you get a 5th card, you'll no longer be able to get any Chase cards, even the business ones. In other words, even though the United Business Explorer and Chase Ink Preferred card don't count against the limit, as soon as you hit 5/24, you won't be able to get them.

    • It is different with Bank of America. Their 3/12 or 7/12 limit only affects their personal cards, so you can still apply for their small business cards after you've hit the limit.

  • It is often better to get the business version of a card (if one is available). If you are under the Chase's or Bank of America's limit, it won't use up any of your slots and you'll have the flexibility to take advantage of any Chase or Bank of America cards you may want later. If you over the limits, it may let you get back under them more quickly.

Maximize your slots

Since Bank of America and especially Chase have so many good credit cards, you'll want to get as you can before you hit these limits. Avoid signing up for other personal cards, until after your finished getting the Chase and Bank of America cards you want.

  1. Figure out how many remaining "slots" you have. You may need to look at your credit report, but try to figure out how many personal credit cards you've signed up for in the last 12 and 24 months, including cards where you are only an "authorized cardholder". For example, if you've signed up for a single personal card in the last year and another in the year before that, you have room for three more personal credit cards before you hit the Chase 5/24 limit, but only two more cards before hit the Bank of America 3/12 limit. Monitor Your Credit Score to Make Sure Everything is On Track.

    2. Depending on the timing of your previous cards, new slots might be opening up soon, and you may get more room to open additional cards before you hit the limits.

  2. Prioritize which affected cards to get. You need to decide the best use of your remaining slots. You may not have room to get all the cards you want. Perhaps you want to make sure to get a United Airlines card, the Hyatt card, a Sapphire card, and an Unlimited card. The mix of cards will be different for each person depending on where they live and how they travel.

    3. You may also need to make room for any critical Barclays, Capital One Wells Fargo, and U.S. Bank cards you really want. While they don't have hard rules, it can be hard to get approved by those bank once you've had a bunch of recent applications.

  3. If you are willing and able to get business cards, you can mix these in at any time. Prioritize signing up for any business cards that have useful benefits, so you can start using them as quickly as possible.
  4. If you have any leftover slots available, use them to get the Chase and Bank of America cards with the best possible signup offers. You won't be able to get these cards later, but you will still be able to get cards from most other banks.
  5. Make sure to get any Chase business cards before you hit the 5/24 limit. You don't need to get them right away, but you do need to get them before you apply for your 5th personal card in the last 24 months. You can get other business card signup offers either before or after you hit the 5/24 limit.

Once you've figured out which cards to get, you can get them in an order, as long as you're finished once you hit the limit. If your credit utilization is high, you might want to get a few personal cards first to improve your credit score.

If you are planning on collecting signup offers, you can view detailed plans on how to proceed.

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Which Signup Bonuses to Get First
Timing Your Applications

Chase limits you to a maximum of two new credit cards every month, but we wouldn't recommend getting more than one card per month or two. The faster you expand the amount of your credit with Chase, the more nervous Chase might get that you are going to become a credit risk. Mix in any any Bank of America, business, or other high-priority cards to slow down the speed at which you sign up for Chase cards.

Strategies to continue qualifying for the Southwest Companion Pass

If you qualify for a Southwest companion pass by earning your signup bonuses towards the beginning of the year, you will have access to the pass for almost two years.

When the pass expires, most people will want to re-qualify for it. But to do that, you’ll need to be under the Chase 5/24 limit.

  • The simplest approach is to have one person stick to a smaller number of cards. Every two years, each person is eligible for a total of 5 personal cards. Assuming they are willing and able to get business cards, one person can get 5 personal cards, both Southwest business credit cards, and whatever other business cards they want, every two years.

    • With just personal cards, one person would need to reserve one of the 5 slots every two years for one of the Southwest cards and earn the remaining companion pass qualification requirements through other earning options.

    The other person doesn’t need to worry about the signup limit and can get as many cards as they want.

  • The skip-a-year method. Under this approach, you get all the credit cards which are most important to you, including the Southwest Airlines cards, during the first year. That way, you can be sure to get all the cards you want for your core credit card collection and collect all the best signup offers. Then, you stop signing up for new credit cards.

    • A year later, your Southwest pass will expire, but you won’t be able to immediately re-qualify. About two years after you finished your initial burst of signup activity, you’ll back under the limit and will be able to apply for the Southwest Airlines cards again. Depending on how quickly you acquired the other cards you want, you may only need to live without the pass for 12-18 months.

    And if you are willing and able to get business cards, you can get those at any point in the process.

Possibilities for bypassing the rule

If you are over the 5/24 limit, it is almost, but not completely, impossible to get approved for Chase cards.

  • If you are “pre-approved” in-branch, you will usually be able to get the card, even if you are over 5/24. You need to ask your banker to see if you are pre-approved for any cards and you need to fill out the application in the branch (not online). Just be aware that if you are over 5/24, there is a very low likelihood that you'll have any pre-approved offers.
  • Other pre-approved offers. On the "Offers for You" section of the Chase website, you may see credit card offers that are marked with a green star and "Already Approved" or a black star and "You're pre-qualified". If these offers state a fixed APR, not a range of percentages, they will bypass the normal 5/24 limits. If you use the United mobile application and you see a pre-qualified offer for the United Explorer card with a fixed APR, it should also bypass the 5/14 limits. Any other Chase offer, where it seems like you are pre-qualified or already approved, including all offers with an adjustable APR, will NOT bypass the limits.
  • If you have a more significant business, you may be able to get approved for more cards. You will need to have your own “Business Relationship Manager” at Chase and it will only work if you fill out a paper-based application form.
  • Being a Chase Private Client no longer exempts you from the rule. During the earlier days of the Chase 5/24 rule, Chase didn’t always apply the rule to its best customers. If you were a Chase Private Client, your application might still have gotten approved or you could have gotten approved by having your personal banker help you with the reconsideration process. While anything is possible, this has stopped working.

Getting under Chase 5/24 again

Our basic approach to the Chase 5/24 rule is simple. Sign up for as many affected cards as you can, move onto other cards, and don’t look back.

But if Chase cards are extremely important to you, you can use a one-year-on, two-years-off strategy.

With this approach, you go crazy with credit cards signups and then go (close to) cold turkey (with personal cards) for two years. At the end of your two-year abstinence, you can sign up for another set of Chase cards again, then a bunch of other credit cards, and then possibly go cold-turkey again.

During the two “down years”, you can always sign up for a particularly amazing or useful card. You’ll still get under the 5-card limit around the same time. You'll just wind up having room for one less Chase card, when you do. And you can still sign up for as many business cards as you want the entire time.

Also, there is no hard and fast rule about how long your active period should be. You could limit it to six months, so you can get Chase cards every 2.5 years; or you can lengthen it out to 2 years and get a set of Chase cards every four years.




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