Due To Massive Growing Competition Will Chase Be Forced To Do Away With Its 5/24 Rule?

[Anonymous]

Due To Massive Growing Competition Will Chase Be Forced To Do Away With Its 5/24 Rule?

Chase's 5/24 Rule, which will decline you for any of their credit cards if you have acquired five credit cards in the last twent-four months, in my opinion hurst them more than it those consumers.

Chase's 5/24 Rule reminds me of how tough Verizon Wireless was back in the 1999/2000, it was extremely tough for almost anyone outside of a businessmen/women to obtain service with them.

So, all those potential clients went over to (at the time) lesser quality wireless providers like T-Mobile and Sprint, two companies whose stock rose, because of Verizon's tough standards.

Other credit card issuers are talking advantage of Chase's 5/24 rule and offering comparable credit cards "without" the restrictions.

Chase is in a tough spot, stand firm and allow others to catch up or even surpass you or relax that 5/24 Rule and regaining its edge.

Also, I've read numerous comments on several websites that people went with the Chase Trifecta first, then went on an App Spree only to have Chase reduce their limits or even closed down a card or two or all due to that person obtaining more credit cards.

[Remedios]

I am only going to address your main question:

Chase does not need to revisit 5/24, because that is NOT an issue for majority of applicants.
In addition, when Chase wants to, 5/24 does not matter. Some people get approved with lolwut/24 and others cannot get approved with 1/25.

[Brian_Earl_Spilner]

It's not changing anytime soon. They just applied the rule to all of their cards this past November. That's in addition to what @Remedios said. Normal people, when it comes to credit, may only apply for a new card every few years.

[Anonymous]

Better way to be competitive is for chase to boost the UR points on its card. 3x on travel/dining is now just middle of the pack. 2x on travel/dining is simply sad.

[budugu]

All banks go through cycles ( like most of us on the forums) ... Chase was in an acquisition mode to grow the business for a couple of years. Now they are under expense pressure to show results. So the cut down. Some one will realize few years later that the book attrition is high (my guess 3) and will try to grow in a different pocket.

[wasCB14]

5/24 does prevent many applications from being approved, but those applications are largely from unprofitable bonus chasers.

[K-in-Boston]

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@Anonymous wrote:

Due To Massive Growing Competition Will Chase Be Forced To Do Away With Its 5/24 Rule?

Chase's 5/24 Rule, which will decline you for any of their credit cards if you have acquired five credit cards in the last twent-four months, in my opinion hurst them more than it those consumers.

...

Also, I've read numerous comments on several websites that people went with the Chase Trifecta first, then went on an App Spree only to have Chase reduce their limits or even closed down a card or two or all due to that person obtaining more credit cards.

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Their 5/24 rule is not going away and there's no reason for them to take it away.  It was implemented to cut down on churning.  As stated earlier, the average consumer is not opening that many accounts in a 2 year period.  Many people won't open 5 credit cards in their entire life.  They took a bit of a hit with the initial 100k CSR bonus and not only kept 5/24 but expanded it and also added additional restrictions on Sapphire products.  I assure you that Chase is not hurting due to 5/24.

As for the last paragraph, that's going to depend on the borrower.  Those with thick and aged files, good income, good credit scores, etc. will likely not run into that issue.  (I opened 8 credit card accounts in the first 9 months after opening my CSP (now CSR) including another Chase card with no adverse action.)  Those who don't meet that criteria can (and arguably should) be subject to the same treatment from any lender.

[Anonymous]

Barclay and Capital One have implemented similar rules.  Amex now has their pop-up telling you won't get the bonus due to past behaviors.  Bank of America has its 2/3/4 rule.   It is a sad world we are entering.   With such little options I actually took Amex upgrade offer for $250 to convert my card from BCE to BCP.  Net is only $155 but no hard pull and no new account.  Other than Citi the pickings are slim these days.  

[mongstradamus]

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@Anonymous wrote:

Better way to be competitive is for chase to boost the UR points on its card. 3x on travel/dining is now just middle of the pack. 2x on travel/dining is simply sad.

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Not having any bonus categories for groceries is what is making me move a lot of spend away from Chase. For me personally Groceries and restaurants are the majority of my spend so they are missing out a lot with what the gold is providing for me. I am still debating wether i want to go fully in with Amex MR system and going for the 2x flat MR card. 

I am presently using my FU card for that purpose for non category spend but may move away from that and just use FU for chase portal purchases who knows. 

[kdm31091]

Sorry but I really doubt 5/24 would go away. Outside of the "churning" or reward chasing community, no general consumer is over the 5/24 threshold or even close. It doesn't impact any "regular" customers. Chase is not that interested in the business of reward chasers or churners, who tend to be unprofitable anyway.

In general in the credit card world I think things will only get tighter with regard to approval standards. Companies want to give generous rewards to compete, but they also want only long term users. Across the board I think we will just see more and more restrictions.