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

[Anonymous]

I would love to eventually be proven wrong, but 5/24 or stricter is likely to be the new normal.
Loosening of credit coming out of the great recession and greater competition in the rewards card market may prove to be the anomoly.
Priority Pass was a lot more valuable before everyone had it.

[UpperNwGuy]

Yep, I see Chase keeping 5/24, but I do think they will come under pressure to reinvent the CSP so it is something other than a junior version of the CSR.  Perhaps it could be a 3x grocery and 2x dining card.  

Despite what an earlier poster wrote, the CSR is solid at 3x points for dining and travel.  Yes, it is fewer points for dining, but the dining bonus covers all US restaurants, whereas Amex only covers some, and it covers international restaurants, which Amex excludes.  The CSR's travel bonus also covers far more travel subcategories than does Amex and doesn't have Amex's silly restrictions.

[Remedios]

It's harder to get some of the Cap One cards these days. 

[Anonymous]

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@Anonymous wrote:
I would love to eventually be proven wrong, but 5/24 or stricter is likely to be the new normal.
Loosening of credit coming out of the great recession and greater competition in the rewards card market may prove to be the anomoly.
Priority Pass was a lot more valuable before everyone had it.

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I agree.   I assume Chase has done their research and know better, but my first pass at the policy would be more:   no bonus for those with more than X open credit cards (and some factor for counting closed ones as well).   If you have a lot of cards, you probably won't spend enough on mine.  The current Chase approach adds recency, perhaps for those who have recently become churners!

Chase also doesn't just restrict the bonus, they don't give you the card at all.   I don't know if this is because "bad" people don't even make up the cost of the account, or it is easier to deny than be like Amex and say you can have it with no bonus and have arguments.

[NRB525]

5/24 is just one of the ways banks are trying to keep their credit card offerings profitable. All banks have some variation of this.

In the same way that one significant charged off account can wipe out interest earnings from many other customers, a churner getting multiple SUB is expensive.

[Anonymous]

I think quite the contrary, Chase will lead the industry shift to making such rules standard. The credit card companies are all tightening up. They want customers who will actually be profitable. As unpopular as Chase’s 5/24 is around here, it makes sense for the companies. 

[Anonymous]

No, they will not do away with the rule.  Competition is not growing, as fewer players control more of the marketshare.  Also they want to keep profit margins higher by preventing people from getting multiple bonuses.  

I don’t expect this to change.  Goldman Sachs is a wildcard if they come out with Credit Cards with favorable products but so far has not materialized.  Hundreds of banks issue credit cards but due to Mergers and Acquisitions there are less and most marketshare is small.  

[Gollum]

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@Anonymous wrote:

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.

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I don't want to bank with or have a credit card with J.P. Morgan Chase Bank, N.A. (Chase Bank).

I like to read the news (I try to avoid reading the "news" from biased "news" organizations) though, and it seems to me that some/many large commercial banks that were offering generous credit card rewards programs are now trying to reduce expenses/payouts for rewards programs. Churners are a logical place to start. Churners wouldn't seem to suffer any "hurt:" they just would lose their sign up bonus or whatever.

[MrDisco99]

What competition?  All the other big CC issuers have followed Chase's example and implemented their own anti-churning rules.

At least Amex will still approve you even if they deny the bonus, so there's that I guess.

[Anonymous]

I think the only thing that could cause the 5/24 rule to end is if the airlines and hotels lose revenue because of it and switch to other banks. If Chase started losing Southwest or United then they might reexamine their decision.