Chase Introduces A New, Major Restriction For Cardholders
Caroline Lupini August 30, 2017
In an ongoing effort to minimize credit card churners applying for cards, Chase has imposed another restriction. As of August 27, when a memo was sent out to Chase employees, it is no longer possible to have more than one Sapphire-branded credit card (Chase Sapphire Card, Chase Sapphire Preferred Card, Chase Sapphire Reserve Card).
It is important to note that no changes are going into effect for existing cardholders. If you already hold more than one Sapphire-branded card, you will continue to be able to spend on both of your cards.
If you don’t currently hold a Sapphire card, but you have in the past, this rule may or may not effect you. It will depend on when you earned your last sign-up bonus. If you earned your last sign-up bonus for a Sapphire card more than 24 months ago, you can apply for another Sapphire card and earn the bonus again. If you earned a sign-up bonus for the Sapphire card in the last 24 months, you will not be able to earn another bonus until 24 months has passed since earning the bonus AND you have closed the Sapphire account or downgraded it to another account like a Freedom or Freedom Unlimited.
Unfortunately, this is more bad news for us. Chase’s 5/24 rule has already affected our ability to quickly earn Ultimate Rewards points, and this new restriction takes it one step further by making it impossible to earn multiple bonuses on Sapphire-branded cards within the same 24 month period, even if you are under 5/24.
Does Chase’s new rule regarding Sapphire-branded credit cards affect you?
Agree with jbeckett.
Banks try to thwart churners, yet it is their own marketing efforts that created churners. I cannot visit any website without seeing prominent ads from multiple banks offering 50K, 60K, 70K bonus miles! It certainly appears that they want me to pursue those bonuses. There is no question that they want me to have multiple credit cards; otherwise, Chase would not offer 23 different cards, most of which have the same basic features. I recently canceled my Chase United MileagePlus Explorer card with the specific intent of re-applying the following month, just to get the prevailing bonus of 50K miles. (Chase makes the rules...I just follow them!) Ironically, because I had recently canceled my card, they aggressively pursued me with an enhanced offer of 70K to win back my business. Is it "churning" to succumb to the bank's aggressive marketing? When my grocery store advertises BOGO on orange juice and eggs, they do not tell me that if I buy the OJ, I cannot buy the eggs!
Does this mean you have to be without a Sapphire card for 24 months before you can open another one? Or you just won't be able to get the bonus? Because I thought it would be easy to just switch back and forth every 24 months. Reserve for 2 years, cancel. Preferred for 2 years, cancel. This may prevent that if you need a 2 year buffer in between. It would have to be Reserve for 2 years, cancel. 2 year wait. Reserve or Preferred for 2 years, etc.
Agreed. Changes are only an issue for the churning sub portion of Cardholders.
Agree with jbeckett. Not a big deal for folks who are not constantly applying for credit cards solely for the bonus points.