Some of the first questions new points & miles enthusiasts often have is “why is everyone talking about Chase?” and “are Chase points (Ultimate Rewards or “URs”) that much more valuable than all other points & miles?” These questions are understandable and are questions I dealt with back in 2015/2016. The points can't be THAT good, can they? Every single blog that covers award travel discusses Chase, something called 5/24, and steers newbies towards Chase cards first. Why? The “5/24” rule is the reason behind this.

Chase Application Rules

Chase has lots of rules for credit card applications, as do most banks. The main rules are: 1) the “2/30” rule: meaning that you will not be approved for more than 2 cards in a 30-day period. 2) “0/30” rule: meaning that you cannot have applied for any credit cards in a 30-day period before applying for a business card. 3) the “Sapphire Family” rule: meaning you can only receive one sign-up bonus every 48 months from any of the three Chase Sapphire cards and you cannot apply for a new Sapphire product while currently holding a Chase Sapphire Preferred, Chase Sapphire Reserve, or the no annual fee Chase Sapphire. 4) the “Southwest Family” rule: meaning you can only receive one sign-up bonus every 24 months from any of the Southwest personal cards and you cannot apply for a new Southwest personal card while currently holding a Chase Southwest Plus, Chase Southwest Premier, or Chase Southwest Priority card. 5) the “5/24” rule: This rule is so onerous, so cut-and-dried, and so black-and-white that it is THE rule for all points & miles enthusiasts. It is (or should be) the first response to any “what card should I get next?” question. I cannot stress enough the importance of this rule! Learn it. Know it. Think about it. When you meet someone new, introduce yourself and tell them your 5/24 status (okay, maybe don't go that far). But before you apply for ANY credit card, ask yourself: “what is my current 5/24?” and  “how will this application affect my 5/24?”

The 5/24 Rule Explained

Quite simply, the “5/24 Rule” is a count of how many personal credit card accounts you've opened in the prior 24 months from any bank. Also, business cards from Discover, TD Bank, and Capital One Spark Miles cards count against your 5/24 count. If you are 5+/24, you will not be approved for any Chase personal or business credit cards. Two very rare exceptions are some very high net worth Chase Private Client banking customers or receiving a targeted offer from Chase for one of its products (very, very rare). Absent a near miracle, if you are 5/24 (or higher), you cannot obtain a Chase card until you fall back under the magic number.

Determining Your 5/24 Status

The easiest way to confirm your current 5/24 status (for free) is to download Credit Karma and/or Credit Sesame. You should ignore their credit score models, as they are notoriously inconsistent and attempt to draw you back to their apps with wild fluctuations in your score. What both apps are great for is looking at all the accounts on your credit report and confirming the date each account was opened. Before you begin your award travel journey, you must confirm your 5/24 status. Once known, I highly recommend creating a spreadsheet to track your 5/24 status. This spreadsheet can also track your annual fee due dates, sign-up bonus, opening/closing dates, etc. Here is a look at a sample chart that is similar to ours:

Under 5/24 Roadmap

If you're just learning about rewards travel and you are under 5/24, congratulations! You are eligible for Chase credit cards! The first step in the journey is obtaining a UR-earning card. Here, you must decide between a Chase Sapphire Preferred and a Chase Sapphire Reserve, as you can no longer have both cards. Note: You also must wait 48 months since you last received a bonus on either the CSP or CSR. If you earned a bonus on either of these in the past 48 months, you must wait to sign up again. The Chase Sapphire Preferred is the best card for most beginners because the annual fee is $95 versus the CSR annual fee of $550. While the CSR's annual fee can be offset by multiple annual credits, including a $300 travel credit, plus $120 in DoorDash credits, $180 ($15/month) in Instacart credits, and a 12 month membership to Lyft Pink. Is the CSP perfect for everyone? Definitely not. If you are a high spender in restaurants and/or travel or you plan to use the Chase travel portal to buy economy flights, rental cars, hotel rooms, or excursions/tours with your URs, then the CSR might make sense for you. Let's break down the math: URs earned on a CSP are worth 1.25 cents per point (cpp) in the Chase portal. You earn 3.1x on all dining and 2.1x on travel purchases, after the annual 10% bonus points per dollar spent. URs earned on a CSR are worth 1.5 cpp in the Chase portal. You earn 3x on all dining and travel purchases. If you plan to spend the sign-up bonus points in the Chase portal, as described above, CSR wins. We generally discourage portal bookings, however, because you can get more value from transfer partners and because the portal functions as a third party and can add a layer of complexity if something changes with your plans. While I still think most beginners should consider the CSP for the reasons outlined above, the CSR makes sense for those who spend more than $5,000/year on travel. Note: CSR and CSP offer many other perks. CSR's perks are superior in every way: better car rental insurance, better trip delay/cancellation/interruption coverage, airport lounge access, Global Entry/TSA Precheck reimbursement, etc. I am not including these perks in the evaluation, for simplicity's sake. However, please know that there are many tangible benefits with the CSR that the CSP does not have.

Over 5/24 Roadmap

If you're new to award travel, only to realize that you are over 5/24 (whomp, whomp, whomp!), do not fret! There are TONS of great options out there. Chase is the only bank that unofficially-officially recognizes the “5/24 rule.” Other banks do not apply this rule. You can still earn many valuable sign-up bonuses and, eventually, get back under 5/24 to open those valuable Chase cards. Your journey will just be different than most others'. Feel free to reach out to me via email on the Contact Us page or in our Facebook group for a personalized plan moving forward. Good luck to all as you begin your award travel journey!

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