topic Re: Applying for the same Credit Card Twice and the 5/24 Rule in Credit Cards

Applying for the same Credit Card Twice and the 5/24 Rule

iNathanDrake — Wed, 08 Aug 2018 14:21:41 GMT

Hey Everyone!

Is it possible to apply for the same credit card twice? More specifically the Chase Freedom Unlimited card. I opened this card summer 2017. I generally open a new card yearly to take advantage of APR free periods and sign up bonuses. The goal there is to reach over 15 accounts without it all being in one shot. I already opened my next card back in June (Discover It Chrome - 2nd discover card now). I've had Amex blue cash, Capital One Quicksilver, Bestbuys CC, etc. I've also had the original chase freedom since 2015, however during 2015 I did not care for credit or know much about it. The reason I am interested in another CFU is due to the fact that it's within the same bank as my bank account. What this means to me is, if I spend today 300 dollars, I can pay today 300 if I chose to, and it credits my account instantly. Where as another credit card (Amex/Discover) It could show that I have 5000 available of 7000, however my current balance could be 800. I cannot make a 2000 payment until it updates, where as with chase I can.

I know the purpose of credit is to not worry about paying it back immediately not the purpose of this post. Simply like the convenience of instant payments and credits and just curious if next year, during say July can I open another CFU? As for the 5/24 Rule, I don't believe I've opened 5 cards in the last 2 years. Amex BCE Was April 2016 so the 24 months do not apply to that. After that was Discover It October 2016? So almost past the 2 years, and last summer CFU July 2017.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

Ardecko — Wed, 08 Aug 2018 14:38:07 GMT

About paying on your cards: you're doing it wrong.

Use your bank's provided bill pay service to initiate payments. You can pay whatever about you choose, regardless of the settling of charges on your card. Also, if you initiate from the credit card side, there is a chance something will burp and you end up with nasty fees.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

Anonymous — Wed, 08 Aug 2018 14:44:06 GMT

@Ardecko wrote:
About paying on your cards: you're doing it wrong.

Use your bank's provided bill pay service to initiate payments. You can pay whatever about you choose, regardless of the settling of charges on your card. Also, if you initiate from the credit card side, there is a chance something will burp and you end up with nasty fees.

In my experience, after linking my bank account to my credit cards, if I initiate the transfer from the credit side, the credit line is restored instantly (I've done this with my citi card, BOA card and discover) even though it takes my bank 2 days or so to actually pay it. I also don't have any fees from that route, that may just be a TD bank feature though.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

Anonymous — Wed, 08 Aug 2018 14:45:25 GMT

@Ardecko wrote:
About paying on your cards: you're doing it wrong.

Use your bank's provided bill pay service to initiate payments. You can pay whatever about you choose, regardless of the settling of charges on your card. Also, if you initiate from the credit card side, there is a chance something will burp and you end up with nasty fees.

It’s not ‘wrong’ to pay your credit cards directly and not use your bank’s bill pay service. It’s just a different way to make payments and it certainly isn’t something inherently bad to use that method. I’ve done it for 30+ years and never had any issues whatsoever. There’s just as much chance for a ‘burp’ using bill pay vs direct payment. It’s up to each person to decide how they want to make payments and both methods work fine.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

K-in-Boston — Wed, 08 Aug 2018 14:51:47 GMT

I'm almost positive that Chase does not allow you to apply for card products that you already have. However, you can do a product change from an existing card to a card product that you already have. I'm not sure what purpose having two Freedom Unlimited cards would have (the 1.5 URs per dollar is unlimited). If you really were determined to apply for a new Freedom Unlimited card, I would first product change your existing Freedom Unlimited card to a 2nd Freedom card (which then allows you up to $3000 per quarter between the 2 cards on the 5% categories), then apply for a new Freedom Unlimited card.

Do you not have the Chase Sapphire Preferred or Reserve? The signup bonus on those cards is going to be substantially better, and would give you the option to either transfer your URs to travel partners or to redeem through the Chase travel portal for 125% or 150% of the value of your URs earned through all of those cards.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

Anonymous — Wed, 08 Aug 2018 14:52:00 GMT

OP I'm a bit confused as to why you want the second Unlimited based off your reasoning? You said the CL would be replenished with an instant payment, but wouldn't your two freedom cards already have that feature? I will say also that you don't have to wait until a pending charge updates to pay it. I have paid off cards in full while charges weren't a part of the balance yet. The way I do it is subtract my total credit line and the available credit line and pay that specific number. It may give your account a credit for a day before pending charges post but that's how you would get around that issue you're facing. I'm pretty sure you can get another Freedom Unlim. if you really want one, but in your case I would diversify personally.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

iNathanDrake — Wed, 08 Aug 2018 15:48:43 GMT

Hey there! I've never had issues wiht direct payments from each card issuers app/website. Been doing just fine with 0 burps so far thankfully. I'm very ontop of my payments and due dates and cycle updates.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

iNathanDrake — Wed, 08 Aug 2018 15:51:42 GMT

@K-in-Boston wrote:
I'm almost positive that Chase does not allow you to apply for card products that you already have. However, you can do a product change from an existing card to a card product that you already have. I'm not sure what purpose having two Freedom Unlimited cards would have (the 1.5 URs per dollar is unlimited). If you really were determined to apply for a new Freedom Unlimited card, I would first product change your existing Freedom Unlimited card to a 2nd Freedom card (which then allows you up to $3000 per quarter between the 2 cards on the 5% categories), then apply for a new Freedom Unlimited card.

Do you not have the Chase Sapphire Preferred or Reserve? The signup bonus on those cards is going to be substantially better, and would give you the option to either transfer your URs to travel partners or to redeem through the Chase travel portal for 125% or 150% of the value of your URs earned through all of those cards.

How would that product change work? If I product change to CF will that keep the same limit I have on the current CFU? In the future could I merge the 2 CF's? Would the limits on each combine?

I do not have a CSR/CSP card as the travel aspect of it does not appeal to me currently. I'm not sure how the 125% or 150% would work either as I've never looked into that card.

The purpose was mostly to use the prodcut I like with another APR free period and sign up bonus.

However, I'm not very knowledgable on how this specifically would work, so I came to the experts

Re: Applying for the same Credit Card Twice and the 5/24 Rule

Anonymous — Wed, 08 Aug 2018 15:56:33 GMT

@Ardecko wrote:
About paying on your cards: you're doing it wrong.

Use your bank's provided bill pay service to initiate payments. You can pay whatever about you choose, regardless of the settling of charges on your card. Also, if you initiate from the credit card side, there is a chance something will burp and you end up with nasty fees.

I disagree with that. I always pay from the bill side. That way the bill immediately shows a payment confirmation and info, and usually an email (if I want). It may take a day or two to pull from my bank account, but the creditor/bill credits the payment the date I clicked. If there's a hiccup the card's customer service isn't going to care or necessarily believe "I paid it from my bank's site." They will, however, see info if you paid from the card account itself.

But, if you do a push payment, from the bank side, the creditor or card account has no indication of a payment until it clears. If there's any issue this can mean that it's days later and possibly late.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

K-in-Boston — Wed, 08 Aug 2018 16:09:42 GMT

@iNathanDrake wrote:
How would that product change work? If I product change to CF will that keep the same limit I have on the current CFU? In the future could I merge the 2 CF's? Would the limits on each combine?
All you have to do is call them and tell them that you would like to change your current Freedom Unlimited card to the Freedom card with the rotating categories. The card number, credit line, APR and all account history reported to the credit bureaus would not change. Your expiration date and security code would, however, when you receive the replacement Freedom card. Yes, you can certainly combine them in the future (or now if you wanted, instead of doing a product change) - in the interest of full disclosure, Chase typically does not allow you to move the last $500 from a card when you close it, though.

I do not have a CSR/CSP card as the travel aspect of it does not appeal to me currently. I'm not sure how the 125% or 150% would work either as I've never looked into that card.
With the CSP (ignoring any travel aspects), you earn 2x URs on travel and dining. Both of those categories are quite broad. The signup bonus is typically 50,000 URs, which would be $500 if used as cash back. There is no annual fee the first year ($95 after), and if you decided not to keep the card after the first year, it could be product changed to Sapphire (no longer available for new applications), Freedom Unlimited, Freedom, or Slate. The CSR has a $450 annual fee (with $300 broad credit among other perks) and earns 3x URs on travel and dining; otherwise everything I said about CSP applies.

As for the 125% and 150%... All URs earned from all of your accounts can be combined. For cash back you will always get 1 cent per UR (10,000 URs = $100). If you booked airfare, hotels, etc. through the Chase UR travel portal, with a CSP your points are worth 1.25 cents and with a CSR your points are worth 1.5 cents. So let's say you had 100,000 URs total and a CSR. You could either get $1000 cash back, or you could buy up to $1500 in airfare at no charge (and let's say you were buying a $1800 round-trip ticket to Tokyo; you could use 100,000 URs and charge the remaining $300 to the CSR card to pay for that ticket). Airfare purchased through Chase, Amex, and Citi, is almost always the same price you would find at the airlines' websites or through places like Kayak, Expedia, etc.

The purpose was mostly to use the prodcut I like with another APR free period and sign up bonus.
As fasr as I am aware, on the consumer side, Freedom, Freedom Unlimited and Slate are the only two cards with 0% introductory offers. F and FU have $150 bonuses currently, while CSP and CSR are effectively $500 (or $625/$750 toward travel).

Re: Applying for the same Credit Card Twice and the 5/24 Rule

K-in-Boston — Wed, 08 Aug 2018 16:14:50 GMT

There is no wrong or right way to make a payment, as long as it's made prior to the due date. Let's try to stay on the topic of applying for a Chase product that one already has.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

iNathanDrake — Wed, 08 Aug 2018 16:41:05 GMT

@K-in-Boston wrote:
@iNathanDrake wrote:
How would that product change work? If I product change to CF will that keep the same limit I have on the current CFU? In the future could I merge the 2 CF's? Would the limits on each combine?
All you have to do is call them and tell them that you would like to change your current Freedom Unlimited card to the Freedom card with the rotating categories. The card number, credit line, APR and all account history reported to the credit bureaus would not change. Your expiration date and security code would, however, when you receive the replacement Freedom card. Yes, you can certainly combine them in the future (or now if you wanted, instead of doing a product change) - in the interest of full disclosure, Chase typically does not allow you to move the last $500 from a card when you close it, though.

I do not have a CSR/CSP card as the travel aspect of it does not appeal to me currently. I'm not sure how the 125% or 150% would work either as I've never looked into that card.
With the CSP (ignoring any travel aspects), you earn 2x URs on travel and dining. Both of those categories are quite broad. The signup bonus is typically 50,000 URs, which would be $500 if used as cash back. There is no annual fee the first year ($95 after), and if you decided not to keep the card after the first year, it could be product changed to Sapphire (no longer available for new applications), Freedom Unlimited, Freedom, or Slate. The CSR has a $450 annual fee (with $300 broad credit among other perks) and earns 3x URs on travel and dining; otherwise everything I said about CSP applies.

As for the 125% and 150%... All URs earned from all of your accounts can be combined. For cash back you will always get 1 cent per UR (10,000 URs = $100). If you booked airfare, hotels, etc. through the Chase UR travel portal, with a CSP your points are worth 1.25 cents and with a CSR your points are worth 1.5 cents. So let's say you had 100,000 URs total and a CSR. You could either get $1000 cash back, or you could buy up to $1500 in airfare at no charge (and let's say you were buying a $1800 round-trip ticket to Tokyo; you could use 100,000 URs and charge the remaining $300 to the CSR card to pay for that ticket). Airfare purchased through Chase, Amex, and Citi, is almost always the same price you would find at the airlines' websites or through places like Kayak, Expedia, etc.

The purpose was mostly to use the prodcut I like with another APR free period and sign up bonus.
As fasr as I am aware, on the consumer side, Freedom, Freedom Unlimited and Slate are the only two cards with 0% introductory offers. F and FU have $150 bonuses currently, while CSP and CSR are effectively $500 (or $625/$750 toward travel).

Thank you for this super informative answer! It's cleared up alot on the UR points system for me! You said I can currently combine my F and FU now if I wanted to into one? How would that affect my AAoA?

Example 1: Change CFU to CF and have 2 CF's. Merge them into 1 CF with a now combnied higher limit. Apply for CFU new, and get reward bonus and apr free period?

Example 2: Merge CF and CFU into one single CF. Apply for new CFU and get reward bonus and apr free period?

Do both examples end up with the same result? Would the merge count as closing an account? My CF also has a pretty low limit, it was one of my first cards and the idea of merging their limits is very appealing.

CSP's bonus requires a spending of 4000 within 3 months, its cool for the free 500 but then the fee anually sucks as I usually use credit cards by apr terms and bonuses. Once I feel I've squeezed out what I want from a card I sock drawer it. So a card with an anual fee isnt too appealing.

Re: Applying for the same Credit Card Twice and the 5/24 Rule

K-in-Boston — Wed, 08 Aug 2018 16:53:04 GMT

Yes, both examples end up with the same result. Yes, merging them would count as closing one of the cards. You would keep the history on the one you keep. The other one will be reported as closed, but will continue to show on your credit reports for up to 10 years and continue to calculate into your AAoA (but not AAoOA where the big O is "open").

As for the CSP, I wouldn't want to pressure you into it, but the card could indeed be changed to one of the no-fee cards I mentioned before when it came time for the renewal. Depending on your travel/dining spending, it could make sense to pay the AF for the higher earning. (Dining is everything from McDonalds to a Michelin-star restaurant and travel is very broad, including mass transit, parking, and tolls.)

Re: Applying for the same Credit Card Twice and the 5/24 Rule

QuakerOatmeal — Wed, 08 Aug 2018 17:42:14 GMT

Oh man, I'd love to apply for another BOA Cash Rewards card to get another 0% APR period!

Premium Rewards didn't come with that. :3

Re: Applying for the same Credit Card Twice and the 5/24 Rule

iNathanDrake — Wed, 08 Aug 2018 19:18:08 GMT

@K-in-Boston wrote:
Yes, both examples end up with the same result. Yes, merging them would count as closing one of the cards. You would keep the history on the one you keep. The other one will be reported as closed, but will continue to show on your credit reports for up to 10 years and continue to calculate into your AAoA (but not AAoOA where the big O is "open").

This is awesome! I think I'd like to go this route! Won't be for a while but atleast I know and I'm excited for it!

As for the CSP, I wouldn't want to pressure you into it, but the card could indeed be changed to one of the no-fee cards I mentioned before when it came time for the renewal. Depending on your travel/dining spending, it could make sense to pay the AF for the higher earning. (Dining is everything from McDonalds to a Michelin-star restaurant and travel is very broad, including mass transit, parking, and tolls.)
I would consider it in the future perhaps after my CFU period is over. And after the 1st year of no anual fee if my yearly earnings weren't worth it I could product change it to a bse Sapphire? Could I also just merge it into my CFU?