FatB

Sorry, just to be clear. The 24 months clock starts on date of app and not date account closed - in order to get bonus again on same card?

Critterlynn

I don't believe that is true. From my understanding the 24 month clock starts when the bonus is awarded which is at the end of the billing cycle in which the minimum spend was met.

TMM1982

Winner

flyer4512

I wouldn't cut it that close, for instance my brother statement with the last 80K is dated 8/12/2014.

He is going to apply ~9/15/2016 to give some buffer. This way 25 months have passed since the bonus posted

I see ( and my brother agrees) it as just the opposite, if they gave him the card and let him make the spend he would have been burned as he would have made the spend and not received the bonus, now he just applies again in ~ 2 months.

On my spreadsheet I have a column for the date the bonus posted

HGHUA

I find this whole thing silly, Chase wants business. I read articles in the paper all the time, just this Sat there was one in the WSJ about how they are giving people with less-than-prime credit more cards. Churners may not be the most profitable bunch but they're probably better off financially with more disposable income to buy things.

I give chase till the end of the year to end this "experiment" of theirs. Otherwise I'm starting my own credit card business... 5x pts per dollar on everything!

mia

When we open a card the credit line is bundled with others, sold, and securitized. Similar to mortgages, auto loans etc. Issuers do want low risk cardholders to lower the average credit risk of the pools, BUT they do not want lines that are seldom used or closed early. The demographics of churners is desirable, but our behavior is not. They would be happy if we used the cards and paid our bills without incurring any interest or fees, but lowering credit lines or closing accounts diminishes our value.

darthbimmer

This. I'm a customer from a desirable demographic (high income, $thousands/month purchases, excellent credit history) but I'm not necessarily a profitable customer. Well, for some cards I am, for others I'm not. Consider this tale of two cards:

Card #1 my partner and I have had for nearly 20 years. We've charged as much as $20k/year on it in the past, though lately we're down to $5k/year. We've paid every bill on time. The bank doesn't make money on interest payments from us, but the swipe fees they make more than cover the 1% cashback we earn. With this bank we are both desirable because of our demographic and desirable for our profitability.

Card #2 I opened purely for the sign-up bonus with an airline. I charged the minimum $1,000 to earn the 50k miles bonus and then threw the card in a drawer. I cancelled it before the first AF was charged. The money this bank earned on my charges came nowhere close to even the discounted cost they'd have paid for those 50k miles. To this bank I looked like a desirable customer for my potential but the actual business I brought them was a big money-loser.

zzrayzz

Not sure since I cannot see the business credit report on my personal, but does having Ink count towards the 5/24 ? I am at 4/24 right now, but I know the Ink will make it 5, but obv it doesnt show up on my report. So any insight on this is greatly appreciated!

mia

Yes it does. Even though it is not on your credit report, Chase knows when you opened it because they are the issuer. Business cards from most other issuers are invisible to Chase.

Read this Wikipost with particular attention to the paragraph titled: How does Chase calculate the number of an applicant's new cards for purposes of the 5/24 rule?


http://www.flyertalk.com/forum/showwiki.php?t=1707643

moretimeoffguy

I'm well over 5/24 and not presently trying to achieve 5/24 (wife still might). But I'm trying to improve the average age of accounts portion of my credit score. When I cancel my Marriott card (a 5/24 product):

1) Will Chase "downgrade" it to another 5/24 card--specifically, the Chase Freedom--if I ask? I know I won't get a sign-up bonus. But the Chase Freedom pairs so nicely with my beloved Chase Sapphire Preferred (long-term keeper).

2) If the answer to #1 is Yes, how would this get reported to the credit bureaus? Would it help or hurt the average age of my open accounts.

Hoping there wouldn't be any hard inquiries either if I downgraded my Marriott card. Would there be?

drquack02

I tried testing the 5/24 rule for the first time and have a positive datapoint.

Credit cards opened in last 24 months ~20

8/2 - Applied for Hyatt card, went pending, received call to verify income and address and approved without issues.

bobert24

It looks like 5/24 isn't affecting IHG. That's great for us - we're just about out of IHG points, and more than 24 months past our last bonus. But, like a lot of other people, we've been keeping our IHG cards open for the annual free night.

I'm sure we'll have to close our current IHG cards before opening new ones. Are there any recent data points on how long we should wait between closing and re-opening? All I've seen is inconclusive or outdated information. A couple years ago, we would have closed the current cards, waited several months, and then re-applied. Now I don't want to risk waiting too long, and Chase changing their policies again. I'd hate to lose the $49 free night every year for nothing.

Perhaps more importantly, is there any reason to think converting these cards to another product wouldn't allow us to reapply? Then we might at least have the option to convert back, if things didn't work out.

bobert24

Answering my own question (at least some of it). Found these posts, both of which indicate that you can apply after ~2 weeks, and both of which are from the past 60 days:

sdsearch

We already knew that Hyatt isn't included in 5/24. Your test simply proves that it still isn't included in 5/24.

mia

...which is valuable information, because many posters like to know if an exception has been tested recently.