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Which Chase Cards Are Affected by The 5/24 Rule?

The 5/24 rule applies to the following cards:
Chase Freedom
Chase Freedom Unlimited
Chase Sapphire Preferred
Chase Sapphire Reserve
Chase Slate
Chase Ink Cash
Chase Ink Plus
Chase Ink Preferred
Chase Southwest Plus personal card
Chase Southwest Premier personal card
Chase Southwest Premier business card
Chase Marriott Premier personal card
Chase United MileagePlus Club Card
Chase United MileagePlus Club  Business Card
Chase United MileagePlus Explorer personal card
Chase United MileagePlus Explorer business card

What Cards Arenít Affected?

The following cards donít have this rule applied to them:
Chase IHG
Chase Hyatt
Chase British Airways
Chase Disney
Chase Fairmont ?
Chase Marriott Premier business card
Chase Ritz-Carlton
Chase Amazon
Chase AARP

HT: DOC
« Last edited by etech0 on October 24, 2017, 10:11:36 PM »

Author Topic: Chase 5/24 Rule To Apply On Co-branded Cards?  (Read 41393 times)

Offline benjie1305

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #60 on: February 16, 2016, 03:31:35 PM »
I see big potential here for other credit card providers to effectively lock out customers from Chase. If they (Barclays/Citi/Amex etc) up their offers just a bit, I believe it could easily sway people to go" for those cards and thus be 5+/24 and snagging processing fees away from Chase.
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Offline @Yehuda

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #61 on: February 16, 2016, 03:37:02 PM »
I see big potential here for other credit card providers to effectively lock out customers from Chase. If they (Barclays/Citi/Amex etc) up their offers just a bit, I believe it could easily sway people to go" for those cards and thus be 5+/24 and snagging processing fees away from Chase.
I think you're forgetting how many credit cards the average consumer has. 5/24 should not impede most Americans from getting a Chase card.

Offline benjie1305

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #62 on: February 16, 2016, 03:46:58 PM »
I think you're forgetting how many credit cards the average consumer has. 5/24 should not impede most Americans from getting a Chase card.

Looks like that number is right around 4. Actually quite close then.
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Offline Centro

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #63 on: February 16, 2016, 03:48:36 PM »
Looks like that number is right around 4. Actually quite close then.
But they probably got 1 per year.
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Offline benjie1305

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #64 on: February 16, 2016, 03:54:03 PM »
But they probably got 1 per year.

I hear that. I obviously don't know all the numbers.

Let us see how it develops. I also think that when marketing from some of the partners comes next year complaining about significantly less YoY % of new credit card account holders that might also have an effect on either Chase keeping the rule this way or some partnerships starting to dwindle.
« Last Edit: February 16, 2016, 03:59:44 PM by benjie1305 »
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Offline Aerial Dag

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #65 on: February 16, 2016, 03:58:20 PM »
I hear that. I obviously don't know all the numbers.

Let us see how it develops. I also think that when marketing from some of the partners comes next year complaining about significantly less YoY % of new credit card account holders that might also have an effect on either Chase keeping the rule this way or in some partnerships starting to dwindle.

Yeah except it might work the other way too. Other banks might see that their credit card signups increase but profitability goes down as churners migrate to other banks and take advantage of big sign up bonuses. That might then encourage the other banks to limit their bonuses to once a lifetime or a similar 5/24 rule.

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #66 on: February 16, 2016, 04:10:10 PM »
Yeah except it might work the other way too. Other banks might see that their credit card signups increase but profitability goes down as churners migrate to other banks and take advantage of big sign up bonuses. That might then encourage the other banks to limit their bonuses to once a lifetime or a similar 5/24 rule.
Thought about that too, after all, the rule was only put in place due to turners.

Offline benjie1305

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #67 on: February 16, 2016, 04:19:59 PM »
Thought about that too, after all, the rule was only put in place due to turners.

The metric Chase chooses though to get rid of its churners makes no sense at all to me. Look at Amex as an example, they implement a "once in a lifetime policy". That focuses on its own product, not the products of other banks. The same goes for Citi with their "18 months" policy which focuses on its own product and not on others. And then you have Chase who a) doesn't punish slow churners at all but does stop people who for example churned at a different bank and might want to get a Chase product for the long term that they want to keep.


On a complete side note: what bugs me tremendously as well is the fact that from a banks perspective the financial risk they are exposed to with a given customer that is given a $30K CL for a Hyatt Card is no different - and thus should make no difference - then having a $7.5K CL via a Marriott,UA,Hyatt and Southwest card.
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Offline Redbull3

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #68 on: February 16, 2016, 04:37:47 PM »
On a complete side note: what bugs me tremendously as well is the fact that from a banks perspective the financial risk they are exposed to with a given customer that is given a $30K CL for a Hyatt Card is no different - and thus should make no difference - then having a $7.5K CL via a Marriott,UA,Hyatt and Southwest card.
This isn't about risk.

Offline Redbull3

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #69 on: February 16, 2016, 04:42:17 PM »
In terms of delinquencies and NCL (net credit losses) there may be some slight incremental risk to having the same CL spread over multiple accounts, iinm. But these rules are about limiting/erasing the revenue hit they are taking on all of the rewards they are doling out.

Offline PETERP

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #70 on: February 16, 2016, 04:51:09 PM »
Do you think having a Private Client account/banker lets you get past 5/24, at least for Biz cards?

do we have any data points here in the past?

I had a Chase Banker send in the special consideration/recommendation form for INK and was
still denied . Is that a data point ?

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #71 on: February 16, 2016, 04:53:49 PM »
I had a Chase Banker send in the special consideration/recommendation form for INK and was
still denied . Is that a data point ?
No

Offline PETERP

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #72 on: February 16, 2016, 04:55:06 PM »

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #73 on: February 16, 2016, 05:08:56 PM »

Tough to prove a negative !
Happened to many many here on DDF that can share that experience.

Offline AJK

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Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #74 on: February 16, 2016, 06:02:08 PM »
In terms of delinquencies and NCL (net credit losses) there may be some slight incremental risk to having the same CL spread over multiple accounts, iinm. But these rules are about limiting/erasing the revenue hit they are taking on all of the rewards they are doling out.

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