If you’re a travel credit card holder, you’ve likely heard of the Chase 5/24 rule.
The rule, which states that if you’ve opened five or more credit card accounts in the past 24 months, you won’t be approved for most Chase credit cards, can initially seem like a hindrance to points and miles aficionados.
However, it’s actually a blessing in disguise, allowing savvy cardholders to be even more strategic and intentional with their credit card applications.
In today’s post, we’ll explore how the Chase 5/24 rule can help you maximize your points aka travel for less.
1. Helps You Focus on the Most Valuable Cards
By limiting the number of cards you can get in a 24-month period, the Chase 5/24 rule forces you to be deliberate about which cards you apply for. Instead of chasing every offer that comes along, you have to prioritize the cards that will give you the most value. This means you’re more likely to earn sign-up bonuses that are worth your time and effort.
2. Keeps Your Credit Score Healthy
Opening too many credit cards too quickly can harm your credit score. The Chase 5/24 rule helps prevent this by encouraging you to space out your applications. Not only does this protect your credit score, but it also makes it easier to get approved for the cards you sincerely want.
3. Nurtures Your Relationship with Chase
Chase is one of the biggest credit card issuers in the US. They are known to offer some of the best travel rewards cards on the market. The 5/24 rule encourages you to foster a positive relationship with Chase. Its conservative lending practices prove to be reassuring for customers who want to do business with a stable and reliable financial institution.
4. Forces You To Develop a Long-Term Strategy
The 5/24 rule encourages you to think intently about your credit card applications and consider how each card fits into your long-term travel goals. It’s an opportunity to prioritize the cards that align with your travel plans and maximize the benefits over time. By developing a long-term strategy, you can avoid impulsive decisions and ensure that you’re getting the most value out of your credit card applications.
5. Encourages You To Maximize Benefits
By being limited to only five credit card accounts in the past 24 months, you’re forced to maximize the benefits of the cards you already have. You’ll be more inclined to use each card for its rewards categories and take advantage of its features. This, in turn, can lead to increased savings and value when it comes to travel.
6. Helps You Avoid Fees and Debt
The Chase 5/24 rule can help prevent you from accumulating unnecessary fees and debt. By limiting the number of cards you can apply for in a two-year period, you’ll be less likely to overspend and miss payments. This will keep your credit score healthy and ensure that you’re making the most of your rewards without incurring unwanted expenses.
7. Enables You To Discover Other Valuable Rewards Programs
When you’re unable to apply for Chase credit cards due to the 5/24 rule, it presents an opportunity to explore other rewards programs. By branching out, you may discover hidden gems and valuable offers from other issuers that you wouldn’t have otherwise considered. This can broaden your horizons and help you become a more well-rounded traveler.
So next time you feel frustrated by the 5/24 rule, remember that it’s actually a friend, not your foe. Use it to your advantage and watch your points mileage take off.