What is the 5/24 Rule? A Simple Guide for Moms Looking to Maximize Travel Rewards
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What is the 5/24 Rule? A Simple Guide for Moms Looking to Maximize Travel Rewards
If you've been exploring the world of credit card rewards, you might have come across the term "5/24 rule." It’s a rule that can make or break your strategy for earning points and miles, especially if you’re looking to unlock amazing family vacations with credit card rewards. But what exactly is the 5/24 rule, and why is it so important? Don’t worry—I've got you covered with a simple explanation that will help you understand how to navigate this crucial rule in the points and miles world.
What is the 5/24 Rule?
The 5/24 rule is a guideline set by Chase, one of the most popular banks for travel rewards credit cards. According to this rule, if you have opened five or more personal credit cards from any bank (not just Chase) within the past 24 months, you’ll likely be denied for most Chase credit cards.
In other words, Chase will count how many new credit cards you’ve been approved for in the last two years. If that number is five or more, you’re considered "over" 5/24, and your chances of being approved for a new Chase card are slim.
Why Does the 5/24 Rule Matter?
The 5/24 rule matters because Chase offers some of the best credit cards for earning travel rewards, including the Chase Sapphire Preferred and the Chase Ink Business Unlimited. These cards are essential tools in maximizing your points and miles, allowing you to travel more with your family for less money.
If you’re over 5/24, you’ll be locked out of applying for these cards, which can limit your ability to earn valuable rewards. That’s why it’s important to be strategic about when and how you apply for new credit cards, especially if you’re aiming to maximize your travel rewards.
How to Check Your 5/24 Status
Wondering how to know if you’re over 5/24? It’s easy to check:
Review Your Credit Report: Start by pulling your credit report from a service like Credit Karma or Experian. Look for all the credit cards you’ve opened in the last 24 months. Remember, this includes cards from all banks, not just Chase.
Count Your Cards: Count the number of personal credit cards you’ve opened in the last two years. If the total is five or more, you’re over 5/24.
Business Cards May Not Count: One important note—most business credit cards (including Chase business cards) do not count toward your 5/24 status when you apply for them. However, if you’re over 5/24, you may still be denied for a new Chase business card.
How to Strategically Manage Your 5/24 Status
If you’re serious about maximizing travel rewards, managing your 5/24 status is key. Here are a few tips to help you stay on track:
Prioritize Chase Cards First: If you’re new to the points and miles world, consider applying for Chase cards first. This way, you can lock in those valuable Chase Ultimate Rewards points before you reach 5/24.
Space Out Your Applications: Be mindful of how often you apply for new credit cards. If you’re close to hitting the 5/24 limit, it might be worth waiting a few months before applying for another card.
Leverage Business Cards: Since most business cards don’t count towards your 5/24 status, consider applying for these if you’re nearing the limit. This allows you to continue earning rewards without affecting your 5/24 count.
Wait it Out: If you’re over 5/24, don’t worry—it’s not permanent. After 24 months from the date you opened your fifth card, you’ll drop back down to 4/24, and you can start applying for Chase cards again.
Final Thoughts: Navigating the 5/24 Rule
The 5/24 rule is a crucial aspect of managing your credit card strategy, especially if you’re aiming to maximize your travel rewards with Chase cards. By understanding how the rule works and being strategic with your applications, you can ensure that you’re always in a position to apply for the best cards and earn the most points.
If you’re new to this, it might seem a little overwhelming at first, but with a bit of planning, you can make the 5/24 rule work in your favor. So, before you apply for that next credit card, take a moment to check your 5/24 status and think about how it fits into your overall travel rewards strategy.
Remember, the goal is to turn those points and miles into unforgettable family adventures, and with the right approach, you’ll be well on your way!
Editorial Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
Advertiser Disclosure: The Rewards Mom has partnered with CardRatings for our coverage of credit card products. The Rewards Mom and CardRatings may receive a commission from card issuers.
