How the 5/24 Rule Affects Your Chase Sapphire Preferred Application in 2024
When it comes to choosing a travel credit card, the Chase Sapphire Preferred often sits at the top of many travelers' lists. Known for its lucrative rewards, flexible redemption options, and comprehensive travel benefits, it’s no wonder why it’s considered a favorite in the world of credit cards. But for those who are eyeing a Chase card, there’s an important factor to consider—the infamous 5/24 rule.
What is the 5/24 Rule?
The 5/24 rule is a guideline used by Chase (and most all other banks and major credit cards) to determine eligibility for new credit card applications. Essentially, if you have opened five or more credit cards from any issuer in the past 24 months, your application for certain Chase cards will likely be denied. This rule includes all types of credit cards – personal and business – and even accounts where you're listed as an authorized user.
The 5/24 rule was implemented to prevent customers from opening multiple accounts just to take advantage of sign-up bonuses and then closing them shortly after. While it may be frustrating for some applicants, it's a way for Chase to ensure that cardholders are genuinely interested in using the card long-term.
Is the 5/24 Rule Still in Effect in 2024?
With the credit card landscape constantly evolving, you might wonder if the 5/24 rule remains relevant in 2024. The short answer is yes, the 5/24 rule is very much alive and continues to play a crucial role in Chase's credit card application process.
Despite speculations about changes or relaxations in the rule, Chase has maintained this policy consistently over the years. For many, understanding this rule means strategically planning applications to avoid surpassing the five-card threshold.
Why is the Chase Sapphire Preferred Everyone’s Favorite?
Lucrative Rewards Program
The card offers generous rewards on travel and dining, making it a top choice for frequent travelers. Points earned can be redeemed through the Chase Ultimate Rewards portal or transferred to travel partners at a 1:1 ratio, offering flexibility and value.
Travel Benefits and Protections
The Chase Sapphire Preferred provides comprehensive travel insurance, including trip cancellation/interruption insurance, auto rental collision damage waiver, and baggage delay insurance. These perks give cardholders peace of mind when on the road.
Sign-Up Bonus
Chase often offers an attractive sign-up bonus after meeting a minimum spend requirement within the first few months. This bonus can be a significant boost for your next adventure.
No Foreign Transaction Fees
For globetrotter, the lack of foreign transaction fees is a huge plus, ensuring that you can use your card abroad without incurring extra costs.
Navigating the 5/24 Rule
If you're planning to apply for a Chase card and you're near the 5/24 threshold, consider these tips:
Monitor Your Card Openings: Keep track of your credit card applications over the recent two years to plan your next move strategically.
Prioritize Chase Cards: If a Chase card is a priority, consider applying for it before pursuing other credit card opportunities.
Authorized User Accounts: If you're an authorized user on someone else’s account, see if you can be removed temporarily to improve your chances of approval.
So while the 5/24 rule can be a hurdle, understanding it allows you to plan effectively and secure a card that's truly worth it. The Chase Sapphire Preferred remains a top contender for travelers seeking valuable rewards and robust benefits. Rest assured, with careful planning, you can tackle the 5/24 rule and enjoy the perks of this beloved card. Happy travels!