Topic Wiki

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 41390 times)

Offline benjie1305

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Dec 2013
  • Posts: 6142
  • Total likes: 11
  • DansDeals.com Hat Tips 15
  • Gender: Male
    • View Profile
  • Location: NY Area
Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #75 on: February 16, 2016, 06:30:54 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.

I understand that and thus I find it awfully weird that they are using a system looking at someone's other bank activities. Someone churning AA cards for travel but with a sapphire preferred card he has had for 5 years and pays an annual fee on gets punished if he potentially wants to get a freedom card for himself to keep long term. They look at other activity as opposed to the end users activity with them.

Furthermore - then don't give them the bonus. Have language just like Amex has it for example. Don't deny a creditworthy person credit because of 5/24.
« Last Edit: February 16, 2016, 06:57:46 PM by benjie1305 »
Work hard, Play harder!

Online Hershelsdeals

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jul 2014
  • Posts: 3358
  • Total likes: 4
  • DansDeals.com Hat Tips 2
    • View Profile
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #76 on: February 16, 2016, 06:56:21 PM »
I understand that and thus I find it awfully weird that they are using a system looking at someone's other bank activities. Someone churning AA cards for travel but with a sapphire preferred card he has had for 5 years and pays an annual fee on gets punished if he potentially once to get a freedom card for himself to keep long term. They look at other activity as opposed to the end users activity with them.

Furthermore - then don't give them the bonus. Have language just like Amex has it for example. Don't deny a creditworthy person credit because of 5/24.
What would you do if you were the CEO of Chase?

Offline Redbull3

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Dec 2011
  • Posts: 2992
  • Total likes: 28
  • DansDeals.com Hat Tips 1
    • View Profile
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #77 on: February 16, 2016, 07:03:58 PM »
Chase doesn't want people who have been churning Citi for years. The best predictor of future behavior...

Offline Venilla

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Jun 2014
  • Posts: 867
  • Total likes: 1
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: USA
  • Programs: Mothering
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #78 on: February 16, 2016, 07:08:43 PM »
What would you do if you were the CEO of Chase?
+1 As much as I don't want, I have to say Chase has -so far- done the best/smartest...
I like vanilla but my name is Venilla.

Offline benjie1305

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Dec 2013
  • Posts: 6142
  • Total likes: 11
  • DansDeals.com Hat Tips 15
  • Gender: Male
    • View Profile
  • Location: NY Area
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #79 on: February 16, 2016, 07:11:46 PM »

Chase doesn't want people who have been churning Citi for years. The best predictor of future behavior...

Who is talking about years? There are numerous people I know that started their own business over the course of the last few years. They travel for work and need to figure it out by themselves. So they got themselves an AA card because it gives them miles but also has perks when they travel with AA. They also have an AS Card for the perks they get on that card. Same goes for his DL Card. They have HH card for some of his hotel stays. He is planning on keeping all of these cards because they benefit him in his travel and he wants to use the card offering him the best benefit at a given location that he can get. That's worth it for him. So now if he would have applied for the Hyatt card first and then would have applied for his other cards, no problem. But because he got the other cards first and now wants to get a long term chase card, he will get denied. How is he even supposed to know that? What did he do wrong? I don't even think - if this is a real rule - that any T&C's mention it (for the UR earning cares atm)
Work hard, Play harder!

Offline Redbull3

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Dec 2011
  • Posts: 2992
  • Total likes: 28
  • DansDeals.com Hat Tips 1
    • View Profile
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #80 on: February 16, 2016, 07:27:07 PM »
Sounds like you are worked up about Chase specifically because they uniquely focus on "any bank" behavior (compared to Citi or Amex focusing on their own products).  The point of the anti-gaming measures these issuers take is to eliminate gamers, and as few profitable clients as they can in the process, with the smallest hits possible to the more intangible metrics like NPS. And I'm sure you would agree that your exceptions probably don't come close to eliminating all of flyertalk, us, others, etc.

Any measure they take would create "unfair" exceptions. Those exist for Citi and Amex as well.
What would you do if you were the CEO of Chase?

Offline EJB

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Sep 2012
  • Posts: 3936
  • Total likes: 38
  • DansDeals.com Hat Tips 13
    • View Profile
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #81 on: February 16, 2016, 07:29:54 PM »
Who is talking about years? There are numerous people I know that started their own business over the course of the last few years. They travel for work and need to figure it out by themselves. So they got themselves an AA card because it gives them miles but also has perks when they travel with AA. They also have an AS Card for the perks they get on that card. Same goes for his DL Card. They have HH card for some of his hotel stays. He is planning on keeping all of these cards because they benefit him in his travel and he wants to use the card offering him the best benefit at a given location that he can get. That's worth it for him. So now if he would have applied for the Hyatt card first and then would have applied for his other cards, no problem. But because he got the other cards first and now wants to get a long term chase card, he will get denied. How is he even supposed to know that? What did he do wrong? I don't even think - if this is a real rule - that any T&C's mention it (for the UR earning cares atm)

Why would the T&C mention chase's underwriting rules? This isn't an eligibility thing, it's an underwriting decision.

Offline benjie1305

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Dec 2013
  • Posts: 6142
  • Total likes: 11
  • DansDeals.com Hat Tips 15
  • Gender: Male
    • View Profile
  • Location: NY Area
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #82 on: February 16, 2016, 07:32:23 PM »

Why would the T&C mention chase's underwriting rules? This isn't an eligibility thing, it's an underwriting decision.

That's fine. My point still stands.

Also I assume this means that the denial letter will state that then. Has anyone had this listed in their denial letter that was told they couldn't get the card due to 5/24?
Work hard, Play harder!

Offline EJB

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Sep 2012
  • Posts: 3936
  • Total likes: 38
  • DansDeals.com Hat Tips 13
    • View Profile
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #83 on: February 16, 2016, 07:35:15 PM »
That's fine. My point still stands.

Also I assume this means that the denial letter will state that then. Has anyone had this listed in their denial letter that was told they couldn't get the card due to 5/24?

I'd assume it says too many recent accounts. Have never seen a denial letter that specifies what is considered too many. And I didn't know that you had a point in the first place. Why should Chase feel bad for someone that can't get a card they want? They decided that they don't want customers with a lot of recent accounts, likely because they are not profitable.

Offline CS91

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Feb 2015
  • Posts: 3526
  • Total likes: 29
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: NY
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #84 on: February 16, 2016, 07:37:47 PM »
Am I the only one that thinks that "The Game" will basically be over within the next 2-3 years? I know things always came and went, but it seems like every loophole is being closed.

Offline Freddie

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Apr 2013
  • Posts: 3058
  • Total likes: 184
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: Pittsburgh
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #85 on: February 16, 2016, 07:43:06 PM »
That's fine. My point still stands.

Also I assume this means that the denial letter will state that then. Has anyone had this listed in their denial letter that was told they couldn't get the card due to 5/24?

My denial letters just said you have adequate credit already, maybe even too many recent accounts. No specific mention of 5/24. That's strictly an "in-house" metric. I'm surprised recon even mentioned the exact limit on the phone. I know they've told it to me (5/24) but it seems funny to me that they even share that info.

Offline benjie1305

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Dec 2013
  • Posts: 6142
  • Total likes: 11
  • DansDeals.com Hat Tips 15
  • Gender: Male
    • View Profile
  • Location: NY Area
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #86 on: February 16, 2016, 07:44:27 PM »

I'd assume it says too many recent accounts. Have never seen a denial letter that specifies what is considered too many. And I didn't know that you had a point in the first place. Why should Chase feel bad for someone that can't get a card they want? They decided that they don't want customers with a lot of recent accounts, likely because they are not profitable.

Look what I wrote at earlier points. It is only unprofitable if they keep giving everyone the bonus. Doesn't make it right to deny a creditworthy person a credit card with them. So don't give them the bonus if they got it before. Furthermore look at someone's behavior within your institution. What if he did have several AA cards but long term chase cards that have been profitable with them. That shouldn't matter at all? Punishing their own - profitable - clients?
Work hard, Play harder!

Offline EJB

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Sep 2012
  • Posts: 3936
  • Total likes: 38
  • DansDeals.com Hat Tips 13
    • View Profile
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #87 on: February 16, 2016, 07:46:52 PM »
Am I the only one that thinks that "The Game" will basically be over within the next 2-3 years? I know things always came and went, but it seems like every loophole is being closed.

For the most part, I agree. From my line of work, I'll tell you that both the airlines and the banks are increasingly caring about managing the liabilities associated with their outstanding points, which for the larger programs is in the billions. Airlines want to turn their FF programs into essentially rebate programs with the redemption value of points pegged at a fixed number. Banks are getting much better and more efficient at using data to monitor customer profitability and make business decisions based on this data. From a tax perspective, there is one disadvantage to controlling the program costs, but they haven't come to realize that yet  ;D.
« Last Edit: February 16, 2016, 07:52:53 PM by EJB »

Offline CS91

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Feb 2015
  • Posts: 3526
  • Total likes: 29
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: NY
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #88 on: February 16, 2016, 07:47:16 PM »
Furthermore look at someone's behavior within your institution. What if he did have several AA cards but long term chase cards that have been profitable with them. That shouldn't matter at all? Punishing their own - profitable - clients?
While that would make sense, it would make things very subjective and on a case-by-case basis. They probably want a uniform set of rules that they can tell every rep to follow.

Offline EJB

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Sep 2012
  • Posts: 3936
  • Total likes: 38
  • DansDeals.com Hat Tips 13
    • View Profile
Re: Chase 5/24 Rule To Apply On Co-branded Cards?
« Reply #89 on: February 16, 2016, 07:51:19 PM »
Look what I wrote at earlier points. It is only unprofitable if they keep giving everyone the bonus. Doesn't make it right to deny a creditworthy person a credit card with them. So don't give them the bonus if they got it before. Furthermore look at someone's behavior within your institution. What if he did have several AA cards but long term chase cards that have been profitable with them. That shouldn't matter at all? Punishing their own - profitable - clients?

They seem to be making a rule that at the aggregate they project will improve profitability. While it is possible that in some individual cases they'll piss off customers and cause them to bank elsewhere or spend less (I don't think this is a major concern of theirs), they likely believe that the additional cost to make more individualized lending decisions is greater than the additional profit they'd generate from those customers. I think the 5/24 rules makes sense from a business perspective in terms of awarding sign on bonuses, but agree with you that they should be able to give someone a card without any bonuses.