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Chase 5/24 on co-branded cards soon?

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Discover2016
Valued Contributor

Re: Chase 5/24 on co-branded cards soon?

I had a feeling that Chase would eventually cover the cobranded cards under the 5/24 rule. I have the CSP, Freedom and Ritz so I am pretty happy with my Chase card selection at the moment so this new policy doesn't affect me as much but I can see how it would really affect somebody that plans to get their first Chase card with a lot of new accounts.Smiley Indifferent

Gardening until September 2025
Next app: Mortgage in September 2025
Message 31 of 65
Anonymous
Not applicable

Re: Chase 5/24 on co-branded cards soon?

Reading that on DOC was what prompted me to hop out the garden and apply for that marriott card, glad it all worked out as the only other card I was interested in, (the british airways)  has you jumping through hoops for that 100k avios.

Message 32 of 65
Anonymous
Not applicable

Re: Chase 5/24 on co-branded cards soon?

Sad.  From a rebuilder's standpoint...you get your 3 majors and 2 store cards, there's 5.  SoL for Chase with 5/24, unless your scores and report are adequate to have any of the chase line up as one of those Majors, however IMO most require Good to Excellent credit to get them.  I hit "good" in Chase's definition after getting my first 5.  This is all debatable and YMMV, I know, just sharing my opinion and viewpoint and angst. I enjoy using credit cards, and every card has it's specific use in my Arsenal. 

Message 33 of 65
CreditCuriosity
Moderator Emeritus

Re: Chase 5/24 on co-branded cards soon?


@Anonymous wrote:

@Anonymous wrote:

@CreditCuriousity wrote:

Hopefully this isnt true.. If so I suspect they are going to lose some of their partners to other issuers as the partners have a say as well or you would hope so.


Won't happen.  Their partners like profitable relationships too.  Someone with 3-4 cards where Chase cards are frequently used are more profitable than someone with 20+ cards where the Chase cards are barely touched.  I can only see this sort of rule happening with other credit card lenders once they see the kind of success Chase is having. 


I think Jon is hitting this point squarely. We can forget that the usage represented on this board is generally outside of the mainstream usage of most CC users. For a huge portion of the market, having 5 CCs would itself seem excessive (Gallup reported that the average # of CCs per person is 2.6; it is 3.7 if counting only those who have CCs). The ideal situation for the CCCs is to have customers who do considerable spending over just a couple of accounts; this is clearly what Chase wants. I feel that Jon is right that other banks might follow suit. Finally, all of this belt tightening is likely an indication of where the banks think the economy is heading...if so, the trend might tend toward even more tightening as we move forward. I certainly hope not, but it is what it is.


Thank gosh the average consumer doesn't have more than 3 CC as the average consumer CC debt is 16k I believe as well Smiley Happy.  Imagine if they had more room to hang themselves with meaning the 16k CC debt.  

 

Altough I am sure the banks like the interest, not good for the consumer..

 

edit for graph from 2015.. also this isn't consumer, but household and that number is scary at least to me.  

 

debt.PNG

Message 34 of 65
red259
Super Contributor

Re: Chase 5/24 on co-branded cards soon?


@Anonymous wrote:

Sad.  From a rebuilder's standpoint...you get your 3 majors and 2 store cards, there's 5.  SoL for Chase with 5/24, unless your scores and report are adequate to have any of the chase line up as one of those Majors, however IMO most require Good to Excellent credit to get them.  I hit "good" in Chase's definition after getting my first 5.  This is all debatable and YMMV, I know, just sharing my opinion and viewpoint and angst. I enjoy using credit cards, and every card has it's specific use in my Arsenal. 


You make a valid point. The 5/24 rule can impact rebuilders who may get a few low limit cards to start out with and by the time they are ready for Chase they may be able to get at most one card without waiting two years. The numbers people are quoting about the average number of credit cards people have in the US, is that for all people in the US or that is the average for people who have credit cards? If it is the prior then that number is somewhat misleading, because many people have zero credit cards for a variety of reasons and throws off the average. I also believe that Chase is making a mistake if they extend the 5/24 to co-branded cards.

 

While I understand the argument for UR cards with co-branded cards it is different. There is a whole segment of people who travel  a lot for business. These people tend to have many more cards than the average person, because they get different credit cards for different benefits, airlines, hotels, lounges, etc. Let's say someone travels with AA & stays at Hilton. They have those associated credit cards along with other cards for their groceries and maybe the prestige or amex plat for lounge access etc. They decide they want to switch to United and Marriott (a reasonable move to pair the two due to the cross tie ins).These types of card holders could be kept out by the 5/24 rule and chase will miss out on significant spend if they are hard core road warriors with 90+ nights in hotel stays and a ton of airline flights. Heck their refusal to give the co-branded card may cause some people to reassess their loyalty to that hotel/airline if they can get a credit card from another lender and much more earning on their annual hotel/airline spend. What if Chase gets to issue a new SPG card? The SPG people in violation of the 5/24 rule would be prevented from getting a co-branded card for their chain? These travel partners are going to want to sell their miles/points to the highest bidder. If Chase isn't interested in buying as many miles and hotel points as another lender then I can see unhappy providers who may look to make deals with other banks. It is one thing to say a bonus is once in a lifetime. It is another to say you can't have the card at all when it comes to co-branded cards. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 35 of 65
redpat
Senior Contributor

Re: Chase 5/24 on co-branded cards soon?

Their data must be pretty interesting to include co-branded cards also.

 

Exclusivity has it's privileges and can lead to better results and return. 

Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
Message 36 of 65
SouthJamaica
Mega Contributor

Chase 5/24 rule to be expanded to cobranded cards

According to this article, Chase's 5/24 rule will now be expanded to include Chase's cobranded cards.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 37 of 65
Anonymous
Not applicable

Re: Chase 5/24 rule to be expanded to cobranded cards

Well, that blows.

Message 38 of 65
MASTERNC
Frequent Contributor

Re: Chase 5/24 rule to be expanded to cobranded cards

Definitely reducing churning but also penalizes those not churning but rather getting cards that meet their needs as they change.

 

I'm still waiting out for CSP but can't justify either Southwest or Marriott given I don't use either that often and the Marriott free night does me no good in major cities.  Unless other banks start following Chase, I shouldn't be too affected with what I have been doing.

Message 39 of 65
Ghoshida
Valued Contributor

Re: Chase 5/24 rule to be expanded to cobranded cards

Message 40 of 65
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