Mar 3, 2016, 8:48 pm
Last edit by: StartinSanDiego
Moderator Note:
5/24 is the new application reality at Chase, so this speculation thread is now closed. As of this writing, there are some exceptions, and in-depth discussion is ongoing. To assist you in finding the most current information, please direct application discussions to the "Applying for Chase Cards" thread:http://www.flyertalk.com/forum/chase...5-present.html
Further discussion regarding the nuances, exceptions and possible work-arounds to Chase's imposed 5/24 limitations may also be found here:
http://www.flyertalk.com/forum/chase...-strategy.html
==============================================
What is Chase's so-called 5/24 policy?
Does the 5/24 rule apply to applications for all Chase cards?
How does Chase calculate the number of an applicant's new cards for purposes of the 5/24 rule?
Are targeted offers exempt from the 5/24 rule?
5/24 is the new application reality at Chase, so this speculation thread is now closed. As of this writing, there are some exceptions, and in-depth discussion is ongoing. To assist you in finding the most current information, please direct application discussions to the "Applying for Chase Cards" thread:http://www.flyertalk.com/forum/chase...5-present.html
Further discussion regarding the nuances, exceptions and possible work-arounds to Chase's imposed 5/24 limitations may also be found here:
http://www.flyertalk.com/forum/chase...-strategy.html
==============================================
What is Chase's so-called 5/24 policy?
Does the 5/24 rule apply to applications for all Chase cards?
How does Chase calculate the number of an applicant's new cards for purposes of the 5/24 rule?
Are targeted offers exempt from the 5/24 rule?
See the wiki at Applying for Chase Credit Cards- May 2015-Present.
Chase "may" limit approvals (5/24) on co-branded cards [flame free speculation]
Feb 12, 2016, 7:23 am
#46
Join Date: Feb 2016
Posts: 292
I need to be educated. How does a sign-up bonus keep new customers? I understand the get, but not the keep.
If I were running a credit card program, I would de-emphasize the sign-up bonus and emphasize a retention bonus. It seems to me that loyalty means sticking around, not showing up every xx months.
And I don't mean to pick on jsk1973; this thought has been running around my head for some time. On the hotel side, I had HHonors reps tell me that HHonors was a loyalty program, and I could get status by being loyal to its competitors and then asking for a match. (Background: I was going to spend about 150 nearly consecutive days at a site. I asked HHonors if I could get any enticement, like complimentary diamond for the number of days it would take to earn diamond. No way, I was told, unless I had been loyal to its competition. Very well, I stayed with Hyatt the whole time, and never regretted it.) It illustrates the mindset that businesses would rather poach to get a new customer than retain existing customers. I don't understand.
If I were running a credit card program, I would de-emphasize the sign-up bonus and emphasize a retention bonus. It seems to me that loyalty means sticking around, not showing up every xx months.
And I don't mean to pick on jsk1973; this thought has been running around my head for some time. On the hotel side, I had HHonors reps tell me that HHonors was a loyalty program, and I could get status by being loyal to its competitors and then asking for a match. (Background: I was going to spend about 150 nearly consecutive days at a site. I asked HHonors if I could get any enticement, like complimentary diamond for the number of days it would take to earn diamond. No way, I was told, unless I had been loyal to its competition. Very well, I stayed with Hyatt the whole time, and never regretted it.) It illustrates the mindset that businesses would rather poach to get a new customer than retain existing customers. I don't understand.
Feb 12, 2016, 7:37 am
#48
Join Date: Feb 2016
Posts: 292
While those who want to maximize value on transactions don't necessarily feel the card justifies the AF, those people are a minority to the banks. And if it's not worth the AF, ok, cancel it/downgrade. You just won't be getting the bonus over and over, that's all.
Feb 12, 2016, 7:50 am
#49
Join Date: Dec 2012
Posts: 76
Here's the problem from the prospective of the co-brands.
They could give a hoot if Chase loses customers/money from the churners. Because from the co-brand's perspective they are only giving out goods that will expire (ie: rooms unsold or flights unsold). The co-brand decides if you can book an award flight or award room. And guess what, they blackout when they want to black out.
The co-brand also gets incremental sales even from award nights/flights.
Some examples:
Purchasing an extra room night when one is using points for the other nights at the same property because it's not worth changing hotels.
Paying for F&B on award flights/award stays.
Incremental staying at other properties/booking cash flights because one is SO close to the next award.
These are all WINS for the co-brand. And again, they have the ability to block out high value dates all in their control. I just CANNOT imagine this going over well when the co-brand Director of Marketing calls up Chase and asks why their April new credit card account holders is down X% YoY.
They could give a hoot if Chase loses customers/money from the churners. Because from the co-brand's perspective they are only giving out goods that will expire (ie: rooms unsold or flights unsold). The co-brand decides if you can book an award flight or award room. And guess what, they blackout when they want to black out.
The co-brand also gets incremental sales even from award nights/flights.
Some examples:
Purchasing an extra room night when one is using points for the other nights at the same property because it's not worth changing hotels.
Paying for F&B on award flights/award stays.
Incremental staying at other properties/booking cash flights because one is SO close to the next award.
These are all WINS for the co-brand. And again, they have the ability to block out high value dates all in their control. I just CANNOT imagine this going over well when the co-brand Director of Marketing calls up Chase and asks why their April new credit card account holders is down X% YoY.
Feb 12, 2016, 8:03 am
#50
Join Date: Feb 2016
Posts: 292
While all of us on these sites think the loss of customers will be massive, I think in the grand scheme it's not going to be very high. Yes, they will of course lose signups from those who know about the 5/24, but other than that? General population? Doubt they will lose much.
Feb 12, 2016, 8:34 am
#51
Join Date: Aug 2015
Posts: 214
KDMs post actually swayed me a bit. It got me thinking, this could very well be response to the financial crisis that there are new laws against letting it happened again, not just an act toward churners.
I'm not going to pretend to know everything that is now enforced on Wall St since the recession, but we all know there are new rules and huge government pressure in place to avoid it from happening again. We also know it happened because the banks, but we'll focus on Chase, was fined $13 billion for several bad practices, notably giving out lines of credit to customers who had shaky credit and income. Obviously this community maintains solid and responsible credit, but we account for such a tiny fraction of the millions of people these multiple credit lines went out to, and that's the post-recession focus. Putting in restrictions to give credit to customers who have asked for a lot of new credit lines in the last two years seems like a method that might actually work to prevent them from doing that again, and keeping long term, responsible credit holders.
Obviously I'm not okay with it, but from a post-recession stand point, I don't see this move costing them $13 billion, so it makes sense to me...unfortunately
I'm not going to pretend to know everything that is now enforced on Wall St since the recession, but we all know there are new rules and huge government pressure in place to avoid it from happening again. We also know it happened because the banks, but we'll focus on Chase, was fined $13 billion for several bad practices, notably giving out lines of credit to customers who had shaky credit and income. Obviously this community maintains solid and responsible credit, but we account for such a tiny fraction of the millions of people these multiple credit lines went out to, and that's the post-recession focus. Putting in restrictions to give credit to customers who have asked for a lot of new credit lines in the last two years seems like a method that might actually work to prevent them from doing that again, and keeping long term, responsible credit holders.
Obviously I'm not okay with it, but from a post-recession stand point, I don't see this move costing them $13 billion, so it makes sense to me...unfortunately
Feb 12, 2016, 8:48 am
#52
Join Date: Sep 2015
Location: SFO
Posts: 3,881
If not, why? If so, please let us know...you'll prob get many new FT customers.
Feb 12, 2016, 8:59 am
#53
Join Date: Feb 2016
Posts: 292
KDMs post actually swayed me a bit. It got me thinking, this could very well be response to the financial crisis that there are new laws against letting it happened again, not just an act toward churners.
I'm not going to pretend to know everything that is now enforced on Wall St since the recession, but we all know there are new rules and huge government pressure in place to avoid it from happening again. We also know it happened because the banks, but we'll focus on Chase, was fined $13 billion for several bad practices, notably giving out lines of credit to customers who had shaky credit and income. Obviously this community maintains solid and responsible credit, but we account for such a tiny fraction of the millions of people these multiple credit lines went out to, and that's the post-recession focus. Putting in restrictions to give credit to customers who have asked for a lot of new credit lines in the last two years seems like a method that might actually work to prevent them from doing that again, and keeping long term, responsible credit holders.
Obviously I'm not okay with it, but from a post-recession stand point, I don't see this move costing them $13 billion, so it makes sense to me...unfortunately
I'm not going to pretend to know everything that is now enforced on Wall St since the recession, but we all know there are new rules and huge government pressure in place to avoid it from happening again. We also know it happened because the banks, but we'll focus on Chase, was fined $13 billion for several bad practices, notably giving out lines of credit to customers who had shaky credit and income. Obviously this community maintains solid and responsible credit, but we account for such a tiny fraction of the millions of people these multiple credit lines went out to, and that's the post-recession focus. Putting in restrictions to give credit to customers who have asked for a lot of new credit lines in the last two years seems like a method that might actually work to prevent them from doing that again, and keeping long term, responsible credit holders.
Obviously I'm not okay with it, but from a post-recession stand point, I don't see this move costing them $13 billion, so it makes sense to me...unfortunately
I just wish some people would stop acting as though they have an unalienable right to whatever cards/benefits/bonuses they want, as many times as they want them. This isn't directed at anyone in particular, just a theme I see sometimes.
Feb 12, 2016, 9:09 am
#54
Join Date: Feb 2016
Location: New York
Programs: Navy A-4 Skyhawk, B727 FE/FO, S80 FO, B757/767 FO, B737 CA
Posts: 1,342
Here's the problem from the prospective of the co-brands.
They could give a hoot if Chase loses customers/money from the churners. Because from the co-brand's perspective they are only giving out goods that will expire (ie: rooms unsold or flights unsold). The co-brand decides if you can book an award flight or award room. And guess what, they blackout when they want to black out.
The co-brand also gets incremental sales even from award nights/flights.
They could give a hoot if Chase loses customers/money from the churners. Because from the co-brand's perspective they are only giving out goods that will expire (ie: rooms unsold or flights unsold). The co-brand decides if you can book an award flight or award room. And guess what, they blackout when they want to black out.
The co-brand also gets incremental sales even from award nights/flights.
So, IMO, Chase will save money by not having to buy as many miles for the card churners but the airlines will make less. We may never know, but it would be interesting to see if Chase gets any backlash over a 5/24 rule from the airlines in the back channels/executive suites.
Feb 12, 2016, 9:17 am
#55
Join Date: Dec 2008
Location: DUB-BOS
Programs: various
Posts: 3,690
For the Co-Brand partner, it is not really about the bonus, Chase will not issue you the card if you do not meet the 5/24 rule.
I cannot see how that does not negatively impact the co-brand partner, who are flat out trying to get people to sign-up for their card.
I cannot see how that does not negatively impact the co-brand partner, who are flat out trying to get people to sign-up for their card.
Feb 12, 2016, 9:39 am
#56
Join Date: May 2000
Location: HH Gold, Marriott Gold, PC Plat, Emirates Silver
Posts: 2,679
The bloggers must be soiling their pants over this. Then again most conveniently do not bring these rules up.
Feb 12, 2016, 9:42 am
#57
Join Date: Feb 2016
Posts: 292
Yes, they are going to be getting far less affiliate revenue, but that's their problem. Some of them are down to earth-ish but others are snotty and act elitist because they made a living by gaming the system. So I don't feel bad, really.
Feb 12, 2016, 9:54 am
#58
Join Date: Nov 2006
Location: RDU
Programs: Marriott Gold Elite, Hyatt Explorist, AA, Delta, Southwest CP, Citi Prestige, MLife Platinum
Posts: 103
It will be interesting - it was disappointing enough to lose Amex but now if we lose Chase that is a big hit. If there aren't enough Citi and Barclays offers to keep going faster than 5/24, then I might adjust one of us (spouse or me) to that rate to get the Chase offers. However, I am hoping there is still enough other stuff to get more than one card every 5-6 months for both of us, at least for a while.
Feb 12, 2016, 9:56 am
#59
Suspended
Join Date: Dec 2014
Posts: 8,460
Well I trade my own money and have no clients. So I'm probably the wrong person to ask this question.
Feb 12, 2016, 10:21 am
#60
Join Date: Sep 2015
Location: SFO
Posts: 3,881
Is there another business/industry as lucrative to the customer requiring very little commitment?