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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 Aren’t Affected?

The following cards don’t 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 127428 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.

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.

Offline Hershelsdeals

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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 ?

Offline Hershelsdeals

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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 »

Offline Hershelsdeals

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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.

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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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Offline benjie1305

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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 »
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Offline Hershelsdeals

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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

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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...

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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...
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Offline benjie1305

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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)
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