Temp: Dealing with the Chase 5/24 and BOA 3/12 Rules (2018)

Many of the the best travel and reward credit cards come from Chase. Unfortunately, because of something called the "Chase 5/24 rule", you may need to take special steps to get approved for these cards.

If you’ve already received 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).

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.

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 most Chase cards.

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.

The 5/24 rule doesn’t affect every Chase card. However, it affects most of their more attractive cards, specifically all their Ultimate Rewards cards (Sapphire, Freedom, Ink) and all of their airline and hotel cards. It doesn't affect a few of their other co-branded cards like the Amazon, Disney, Starbucks, and AARP card.

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General approach
1. Get as many Chase Business cards as you can.
2. Get the critical Chase personal cards
3. Collect extra Chase 5/24 signup bonuses
4. Fill out the rest of your core credit card collection
5. Collect the best remaining signup bonuses
Strategies to continue qualifying for the Southwest Companion Pass
Possibilities for bypassing the rule
Getting under Chase 5/24 again

If you really want any of these cards you are going to need to get them, before you hit the 5 card limit. Even if you don't decide to go crazy collecting signup bonuses, there is a good chance that you'll wind up hitting the 5/24 limit, just be adding some useful cards to your core credit card collection. Once you do, it may be a few years before you will be able to get any more of the affected Chase cards. If you are planning on collecting signup bonuses, it could be a much longer time are under 5/24.

Depending on your circumstances, you may not be able to get them all. You'll need to prioritize your choices or potentially wait for some additional time to elapse before signing up for other cards.

There are also a few potentially important cards from other banks, where you are unlikely to get approved if you've signed up for too many other cards. Even though these cards will take up one of your available slots, if it is important to you, you'll need to get it early.

Southwest Credit Card Guide	If you want to get the Southwest Companion Pass, your top priority is usually to get a Southwest Airlines card.. If you frequently fly Southwest, the Southwest Companion Pass is one of the most lucrative deals in travel hacking. It provides 2 for 1 paid and award tickets on Southwest Airlines, and can be used an unlimited number of times, for up to two years. {Link\|Companion Pass}}. If you want to earn enough Southwest points to qualify, you really want to take advantage of the 40-60,000 point bonus you can receive by signing up for a new Southwest Airlines card. Because you can only collect a signup bonus for one of their personal cards, every two years, we recommend getting the Priority version of the card (unless one of the other cards currently has a higher signup bonus). The Priority cards's $75 travel credit and larger number of anniversary bonus miles more than make up for its higher annual fee. And you'll get some additional ongoing benefits for your future Southwest Airlines flights.
United Credit Card Guide	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. You can potentially 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.
Freedom Unlimited Guide	Many people will want to get the Sapphire Reserve and Freedom Unlimited cards, to earn the highest reward rates on much of their spending. These cards work together to earn the best rewards for your travel and restaurant spending, and for any spending that doesn’t fit into a bonus category. Upgrade to the Chase Freedom Unlimited and Sapphire Reserve Card. The Chase Unlimited combo normally take TWO slots, one for each card. The Unlimited card's reward rate is not very interesting unless you have the Sapphire Reserve, Sapphire Preferred, or Ink Preferred card, so that you can transfer your Ultimate Reward points to their travel partners (or use them at more than 1 cent each to purchase travel). And none of the other cards earn more than 1x points on everyday purchases.
Sapphire Reserve Guide	And as a side benefit, the Sapphire Reserve provides a number of valuable travel benefits like airport lounge access and primary rental car insurance. We highly recommend this combination of cards for most travelers. While this is usually our approach, some people may want to take an alternative strategy. If so, getting the Sapphire Reserve and Freedom Unlimited cards is not that critical. Advanced Options for Everyday Spending.
Altitude Reserve Guide	Bank of America's Altitude Reserve card is a lucrative card for anyone who wants to optimize their rewards for credit card spending, and is hard to get approved for once you start signing up for a bunch of credit cards. It earns 4.5% back on any purchase you make with digital wallets, like Apple Pay. This allows you to earn extra rewards at any brick and mortar or online business that supports mobile wallets. And with Samsung Pay, you can earn 4.5% at any location where you swipe your credit card. To get this card, you'll need an account at U.S. Bank. Even then, it is hard to get approved, if you have too many recent inquiries or credit card accounts. As a result, if you want to be sure to get this card, get it early, even though it will effectively take up one of your Chase 5/24 slots.
Hyatt Credit Cards Guide	If you stay at Hyatt on a semi-frequent basis, the Hyatt card's ability to earn additional elite night credits can make it indispensable. You'll earn 5 qualifying nights just by having the card, plus 2 additional qualifying nights for every $5,000 you spend. If this may help you get to a higher status level this year, or in some future year, you'll want to make sure to get the card, while you still can. Many other travelers may still want the card for its other ongoing benefits. If you've got room for one more card, you might want to get the Hyatt card, rather than just choosing a card with the highest possible signup bonus. You'll get a valuable free night certificate you get each year you have the card, the ability to get a second certificate, if you spend at least $15,000, and at least some extra status benefits of Hyatt.
Freedom Flex Card Guide	The Chase “Freedom” card is interesting, but you are probably better off prioritizing other cards 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. This is an incredible reward rate, since the points are worth around 1.7 cents each. These rewards, however, are capped at $1,500 of spending per quarter, so you can only earn up to an 30,000 bonus category points per year (or 21,000 points on top of the Unlimited Combo's base earning rate). It can take a bit of effort to use this card effectively, so be sure you are willing to take the time to follow this approach, before prioritizing this card too highly, especially because the signup bonus is so low. Earn 5-10% in Rewards with Rotating Category Cards.

Any personal card you get, before you hit the limit, blocks your ability to get one of the affected Chase cards. If you sign up for a card from another bank, you'll have one less slot available for getting a Chase card. Because Chase has so many good cards affected by the rule, you'll miss out on getting a card with a lucrative signup bonus, and/or with valuable travel or reward benefits.

If you really don't want to wait to take advantage of a particular credit card's benefits, you can consider getting it before you hit the Chase, rather than waiting until after. For example, even though it "wastes" a slot, you may want to get the Citi Prestige card (for its valuable 4th night free benefit), the Alaska Airlines card (for its companion certificate and checked bag benefit), or the Hilton Aspire card (for its free night certificate), so you can take advantage of their benefits for an upcoming trip; or you may want to take advantage of a particularly good promotional signup offer, while it is still available.

Timing Your Applications

You can't apply for all these cards at the same time. 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. If you don't spend enough to quickly meet the minimum spending requirements to earn the signup bonuses, you'll need to slow down even more. You never want to miss qualifying for the bonus. Tips to Easily Meet the Initial Spending Requirements of New Credit Cards.

Once you've determined which cards you have room for, you can apply for them in whichever order is most convenient. For example, the Southwest Priority card may be your most important card, but you may want to wait until the end of the year to get it. So, you might get the Freedom Unlimited card first, to start earning a better reward rate on your everyday purchases. Or, if you have an upcoming trip on United Airlines, you might want to get the United card quickly, to take advantage of its free baggage benefit.

If you are planning to use one of your slots on the Altitude Reserve, you should get it as quickly as possible, to increase your odds of approval. Make sure to check out the Altitude Reserve guide, as their are some other steps you may need to take.

Expand your options with business cards

Business credit cards help you partially get around the Chase 5/24 rule.

You can get as many small business credit cards as you want, without taking up any of your Chase 5/24 slots. Of all the major banks, only Capital One will add your business cards to your personal credit report. Because they aren't listed, they aren't counted against the 5 card limit.
Most people are eligible to get small business cards. If you have kind of small business, even a side business that is not incorporated (like selling stuff online, doing odd jobs, working on a book or website. etc.), you can get small business cards. In most cases, you don't even need to have made any money yet. You just need to apply with your social security number and specify your business income. Unlock Extra Reward Points with Business Credit Cards.
If you are aiming for the Southwest Companion Pass, you'll definitely want to get the Southwest business card. You can earn a typical signup bonus of 60,000 points, independently of the bonus you can earn from one of their personal cards. Simply by signing up for a personal and a business version, and meeting the spending requirement, you will have enough points (or nearly enough) to qualify for the pass, as well as pay for over $3,000 in tickets.
Getting the Ink Unlimited card instead of the Freedom Unlimited card saves a slot, and earns you a more valuable bonus. Chase's Ink Unlimited earns the same 1.5x Ultimate Reward points per dollar as the Freedom Unlimited card and doesn't have an annual fee. But unlike the Freedom Unlimited, it doesn't take up one of your Chase 5/24 slots. Even better, you can earn a signup bonus of 50,000 points ($4,000 minimum spend), rather than 15,000 points ($500 minimum spend).

Ink Unlimited Guide

If you want the United card, you can save a slot by getting the business version instead of the personal version. It provides all the important benefits as the personal card (as well as a few additional benefits that probably don't add much additional value). But, it allows you to use up your slot on an additional Chase card, like the Hyatt card or one of the Avios cards.
It is always valuable to save your slots by getting the business version of a card. Even if you have enough slots to get the cards that are most important to you, you can choose to use any remaining slots to collect lucrative signup bonuses from some of the other Chase cards.
If there is a business version available, you don't have to wait to start taking advantage of useful credit card benefits from other banks. Rather than waiting until after you've hit the Chase 5/24 limit to start getting credit cards from other banks, you can get business cards at any time. For example, you could get the business version of the Alaska Airlines credit card to start getting free bags and a companion certificate, or the business version of the SPG credit card to start getting Marriott elite night credits and free night certificates, without using up any of your slots, or waiting until you are done applying for the Chase cards you need.
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. Any business cards you get don't "count" as part of the total number of cards you've gotten in the last 24 months. So, if you've already gotten three cards, and you get two small business cards, your count will still be 3. But, once you've hit the 5/24 limit, you won't be able to get approved for any Chase business cards. For example, even though the United Business Explorer and Chase Ink Preferred card don't count against the limit, as soon as you hit the limit, you won't be able to get them.

Getting the Ink Cards Before it is Too Late

At this point, you might not be particularly interested in the Ink Preferred Card and Ink Cash Card. They don't have any special travel benefits, and you should be able to earn 3x Ultimate Reward points on travel spending with your Sapphire Reserve card.

Ink Cash Guide

What they do offer is high reward rates on a variety of small business categories. Unless you have a more substantial business, there is a good chance you wouldn't naturally spend enough money in these bonus categories to make the cards worthwhile. But, as you get more sophisticated, there is a good chance that you wish you had at least one of these cards.

Unfortunately, if you don't get them now, while you are still under 5/24, there is a good chance you can't get them later. Our advice is to try to signup for both cards now, collect the lucrative signup bonuses (a total of 130,000 Ultimate Reward points, valued at $$2210), and keep at least the Ink Cash card (which has no annual fee) after the first year. If you apply separately with an EIN and a SSN, you may even be able to get two copies of each card, and collect double the signup points.

Because Chase sometimes restricts the number of Ink cards you can receive, the order you apply is important. Apply for the Ink Preferred card first. It has the most valuable signup bonus and can be converted into either of the other cards after the first year. Then get the Ink Unlimited. Finally, get the Ink Cash.

Use any remaining slots to collect signup bonuses

If you are willing and able to use business cards, you can collect bonuses from every Chase business card. As mentioned above, you just need to sign up before you hit the 5/24 limit. You might have already decided to get the Ink Unlimited, United Business Explorer, and/or Southwest Business Premier cards; and if you are following our recommendations, you should be planning to get at least one of the Ink Preferred and Ink Cash cards. That leaves the Marriott Business card as the remaining option, plus any of the cards mentioned above that you weren't already planning to get.
If you have any remaining personal slots, you can use them to collect signup bonuses.

Sapphire Preferred Guide	If you aren't already planning on getting a Sapphire card, it is usually the best option. If you are already getting the Sapphire Reserve, you can't also earn a bonus on the Sapphire Preferred. Chase only allows earning the bonus on one Sapphire card every two year. But, if you aren't planning on getting the Sapphire Reserve, sign up for the Sapphire Preferred to earn its 50,000 Ultimate Reward point bonus. The annual fee is waived the first year.
Hyatt Credit Cards Guide	If you want to focus on points that are easy to use, get the Hyatt and/or a Southwest Airlines card next. It is easy to redeem your points with both programs, and both cards provide other useful benefits. As mentioned above, you can only receive the bonus on one of the personal Southwest Airlines cards every two years.
Avios Credit Cards Guide	If you can generate a lot of credit card spending, and the promotional offers are still available, you may want to get one or more of the Avios cards. Signup bonuses on the British Airways, Iberia, and Aer Lingus cards can be up to 100,000 points. You'll get 50,000 points if you spend $3,000 in the first 3 months, an additional 25,000 points if you spend $10,000 in your first year, and another 25,000 points if you can spend $20,000. Since you can transfer points between these three programs, it doesn't matter very much which of the three cards you get. However, they all offer different companion certificates, so read the guide to determine which card works best for you.
United Credit Card Guide	Otherwise the United Explorer is a good option, typically offering 40,000 United miles.
Marriott Credit Card Guide	Don't bother with the Marriott card. Since you can't get both the Marriott card and the SPG card, and the SPG card has a similar bonus, it is better to use your Chase slot for another card, and get the SPG card from Amex if you want the Marriott points.

There is some risk of getting too many Chase cards. Each time you apply, Chase reevaluates your entire relationship. If they decide that you are a potential risk, they can shut down all your accounts. Some people can get them reinstated, and some can't. Unfortunately, there isn't really a clearly identifiable pattern, so there are no hard and fast rules to follow. We wouldn't get more than a total of 8 Chase cards, including small business cards. This won't guarantee that you avoid a shutdown, but seems like a reasonable trade-off between risk and reward.

It is also worthwhile to start reducing the credit limits on your existing Chase cards, before you apply for more.

Get the Barclays Arrival Plus Next

The Barclays Arrival Plus offers a signup bonus of at least 50,000 points, worth 1 cent each towards almost any travel purchase. It is usually only available to people who are under a 6 cards in 24 month limit. So, if you are collecting signup bonuses (or collecting cards with 2% cashback rates), a good time to get it is just after you use up your last Chase 5/24 slot.

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 (the pass is good until the end of the year following when you qualify for it).

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

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 during every each two year period. The other person doesn’t have to worry about the signup limit, and can sign up for 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. Then, 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.

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 “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 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 if you are over 5/24.
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.
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.

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 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.

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.