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Recently, my credit card timing broke me out from under Chase’s 5/24 rule. Hallelujah! I have been looking forward to this day for quite a while. Due to everything happening with the pandemic right now, I had actually forgotten than my liberation day was coming up. My handy free tool from Travel Freely sent me a reminder email of my new status.
Unfortunately, any excitement I had about this moment quickly disappeared. Why?
Business Cards Are Off the Table
My original plan was to apply for a business card first, then a personal card. This is because you need to be out from under 5/24 to qualify for a business card, but getting one doesn’t add to your 5/24 amount.
However, a few months ago Chase tightened up its requirements for business card approvals. I read about it on Doctor of Credit and in the Travel Freely tool. Most people are being denied.
Of course, I tried to apply for one myself. I already have bank accounts with Chase and a legitimate business. But, I was still denied due to business structure (i.e. I’m a sole proprietorship as a freelance writer).
I’ve Seen Better Offers
To be completely honest, I’ve seen better offers on some of these Chase cards. I realize this is like a car salesman telling people he’s not wild about the cars on the lot. But, this blog has always been more about being honest than being hard-core about selling credit cards.
The best offer on a personal card is for the Chase Sapphire Preferred. 60k Chase Ultimate Rewards points are very useful. But, Chase’s rules state that you can’t get the bonus on that card until it’s been 48 months after receiving the bonus on any Sapphire card. Based on my card history, I don’t qualify for the bonus on this card until next year. Bummer.
I’ve seen higher bonuses on the current Southwest cards and lower spending thresholds for the second-tier bonuses on the Avios cards.
I’m Not in a Rush
Because my big summer trips have all been pushed back a year, and because I don’t need more points for those trips, I have the luxury of time on my side. I’m not in a big crunch to accumulate miles and points in a hurry.
My next goal is to get miles and points for a trip to Europe in 2022. I’m already about halfway there with United miles. But, I have time to apply and accumulate the rest in a different currency.
So for now, I’m not rushing to apply for a card. I’m going to wait at least a few weeks to see if offers change. If not, I might circle back to a card that earns Avios (Aer Lingus, Iberia or British Airways). Or, I may go with a non-Chase card if the offer is more useful to me.
Anybody else out from under 5/24 recently? What is your plan?
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Author: Nancy
Nancy lives near Dallas, Texas, with her husband and three kids. Her favorite vacations include the beach, cruising and everything Disney.
Same here. Not in a hurry to get any new cards. With 3 big trips cancelled and all my points and miles refunded, now I have a huge stash of them to use as soon as I think it is safe enough to travel again. Very bummed out that all my hard work in collecting points and miles was all wasted when I had to cancel my trips this year. Yes, I can use them for future trips, but now I have way more points & miles than I need. On a scale of 1-100, my level of enthusiasm and drive for collecting is at 25% (normally it is 80%). All things considered, I am very fortunate to be where I am.
@Jacob I’m sorry you had to cancel 3 big trips. Many of us on here can relate. It’s such a bummer. Can you book a trip for next year to gain some of that enthusiasm back?
I’m with you. Since leisure travel is such a bad idea right now it’s tough to get enthused. Chase cracking down just makes things worse. For the first time in around a decade I’m well below 5/24 but unless I cancel some of my many business and personal cards I’m afraid that Chase would close a number of my accounts because I have around 10 and Chase is getting understandably more cautious.
@Christian My husband and I own quite a few Chase cards as well. I was just thinking I should cancel one or two if I’m going to apply for another personal card. But again, I’m in no hurry.
I feel you, Nancy! Ever since 5/24 was implemented in 2015 (right before I planned to apply for my 2nd CSP), I finally got under 5/24 for the first time back in April. I planned to apply for the IHG 140k offer on April 1 since that was supposedly the last day for the offer then try for the Chase Ink Preferred (CIP) on May 1. I got IHG but the Chase business card application issues popped up soon after. For all of the reasons in your post (i.e. your headings), my plan is to bide my time on the Chase business cards and stay under 5/24, only applying for (mostly business) cards with REALLY great offers.
I already used the IHG card to stay using the 4th award night free benefit so I’m glad to have it. I ended up getting a 2nd CSP (converted from the Fairmont card) which I recently upgraded to the CSR to take advantage of the increased benefits. To that end, don’t dwell on the business card situation and look for ways to make the most of it with the info we have.
@K.Johnson I’m glad you were able to get the IHG and make good use of it! Sounds like you have a good strategy with focusing on other business cards. I hope Chase loosens its restrictions soon!