Ignoring Chase’s 5/24 rule? Here’s how that could cost you hundreds of thousands of points
Editor's Note
I hate to be the bearer of bad news, but I have bad news. If you aren't following a quality credit card strategy when you play the points and miles game, it could cost you hundreds of thousands of points in travel rewards.
Due to credit card application restrictions like Chase's 5/24 rule, it's important that you focus on Chase credit cards when getting started. If you aren't applying for Chase credit cards early on, it will cost you in the long run.
Let's look at two hypothetical people — both beginning their journeys in the world of points and miles — to see a real example of just how much you could lose by not focusing on Chase cards in the beginning stages.
Related: From credit newbie to credit wizard: Here's a 5-year strategy for rewards cards
The wrong way: Not focusing on Chase
For our first example, let's call this person Steve. Steve hears about points and miles, gets excited and jumps in with no discernible credit card strategy. When it's time to apply for another card, Steve chooses credit cards that seem interesting, but he doesn't have a long-term strategy.
Steve also doesn't understand the Chase 5/24 rule well and, therefore, doesn't get many cards from Chase before becoming ineligible for more Chase cards.
Steve picks up the following credit cards:
| Card name | Welcome bonus | Value of bonus* |
|---|---|---|
| Chase Sapphire Preferred® Card | Earn 60,000 points after spending $4,000 on purchases in the first three months of account opening, | Up to $1,230 |
| Delta SkyMiles® Gold American Express Card | Earn 50,000 bonus miles after spending $2,000 on purchases in the first six months of cardmembership | $600 |
| Citi Strata Premier℠ Card (see rates and fees) | Earn 75,000 bonus points after spending $4,000 on purchases in the first three months from account opening. | $1,350 |
| AAdvantage® Aviator® Red World Elite Mastercard® | Earn 60,000 bonus miles after making your first purchase and paying the $99 annual fee in full, both within the first 90 days | $960 |
| Capital One Venture X Rewards Credit Card | Earn 75,000 bonus miles after spending $4,000 on purchases in the first three months from account opening | $1,388 |
| Total | 315,000 points and miles plus a $300 statement credit | Up to $5,738 (including the travel credit) |
*Value is based on TPG's November 2024 valuations and has not been provided or reviewed by the card issuer.
The information for the AAdvantage Aviator Red World Elite Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Steve has opened five credit cards and is now at the 5/24 limit, meaning he can't get any additional credit cards from Chase at this point. He hauled in 315,000 points and miles and a statement credit, all together at a value of up to more than $5,700 (based on TPG's valuations) — not bad. But Steve will be jealous when seeing what our second person pulls in.
Related: The best credit card welcome bonuses currently
The right way: Focusing on Chase from the start
Our second person is Monique. Monique understands the importance of the Chase 5/24 rule and getting Chase's credit cards now since they will be inaccessible to her later. Thus, Monique picks up five credit cards from Chase when starting out.
Here are the credit cards and bonuses Monique accrues:
| Card name | Welcome bonus | Value of bonus* |
|---|---|---|
| Chase Sapphire Preferred Card | Earn 60,000 points after spending $4,000 on purchases in the first three months of account opening | $1,5230 |
| United℠ Explorer Card | Earn 60,000 miles after spending $3,000 on qualifying purchases in the first three months of opening an account | $810 |
| World of Hyatt Credit Card | Earn up to 60,000 bonus points: 30,000 points after spending $3,000 on purchases in the first three months from account opening, plus up to 30,000 more points by earning 2 points per dollar on purchases that normally earn 1 point per dollar (up to $15,000) | Up to $1,020 |
| Aeroplan® Credit Card | Earn up to 100,000 bonus points: 75,000 bonus points after spending $4,000 on purchases in the first three months of account opening, plus 25,000 bonus points after spending $20,000 on purchases in the first 12 months of account opening | Up to $1,500 |
| Chase Freedom Flex® | Earn $200 cash back after spending $500 on purchases in the first three months from account opening | $200 |
| Total | 270,000 points and miles plus a $300 statement credit and $200 cash | Up to $4,925 (including the travel credit) |
*Value is based on TPG's November 2024 valuations (excluding the Freedom Flex's welcome offer) and has not been provided or reviewed by the card issuer.
Monique earns 270,000 points and miles plus a $300 statement credit and $200 in cash back. She is well positioned to obtain the Chase trifecta, and she netted almost $5,000 worth of welcome bonuses.
Related: The best ways to use your Chase 5/24 slots
Comparing the results
From just these five cards in the charts above, Steve is ahead right now. In the long run, however, Monique will come out ahead.
That's because Steve is past 5/24 and can't get Monique's bonuses. However, Monique can obtain Steve's bonuses in her second round, so she applies for all the cards Steve has applied for (minus the Chase Sapphire Preferred, which she already opened).
Monique can now add thousands more dollars in welcome bonuses in non-Chase cards, while Steve won't be able to apply for any more Chase cards for the foreseeable future.
Related: How TPG staffers with the most credit cards handle Chase's 5/24 rule
Bottom line
Ignoring 5/24 can be costly when starting out in this hobby, as seen in the examples above. If Steve wants to get the Chase cards on Monique's list, he'll need to wait until he falls back under 5/24. That means not opening new credit cards for a while — forgoing welcome bonuses during that waiting period.
The lists above don't consider Chase's excellent lineup of business credit cards, which we should mention. You may be surprised to find out that your side gig or freelance work would qualify for a business credit card. Steve and Monique could consider some of these cards while under 5/24, too.
Whether they open business credit cards or not, Monique's strategy will provide much more value in the long run. By ignoring 5/24, Steve missed out on more than 200,000 extra points and miles and a $200 bonus — worth up to $3,395. Ouch.
Related: Want to open a new Chase card? Here's how to calculate your 5/24 standing