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Credit Cards Marriott and Chase 5/24 rule

Discussion in 'questions. answers. conversations.' started by GBOAC, Feb 24, 2017.

  1. GBOAC

    GBOAC Member

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    I'm considering a Marriott credit card and notice it's offered by Chase. Is the card subject to the Chase 5/24 rule

    thanks
     
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  2. Gaurav

    Gaurav Well-Known Member

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    hi @GBOAC, unfortunately it is.
     
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  3. sgm111222

    sgm111222 New Member

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    We should ask Ben, who is going to speak in April the loyalty conference, usually attended by Chase, to speak to them about rescinding this horrendous, stupid rule, so harmful for this community of points/miles enthusiasts...
     
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  4. sgm111222

    sgm111222 New Member

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    I'm new to this forum...Can we organize as a community to urge Chase to rescind this stupid policy?
     
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  5. rickyw

    rickyw Well-Known Member

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    Welcome @sgm111222

    Pretty sure nobody will really disagree that it's a frustrating policy. But, I'll play devils advocate and take the side of the banks. If they didn't have the 5/24 rule, people could consistently churn credit cards for the sign up bonuses, which can be lucrative for us consumers and very costly for Chase. It would make it very easy to game the system. So, they had to come up with something, hence 5/24.

    Personally, I wish you could still be approved if you're over 5/24, you just can't get a sign up bonus. Sometimes the benefit of a card are good enough to forgo the sign up bonus (Sapphire Reserve, for example). But, unfortunately that's not how it works!
     
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  6. sgm111222

    sgm111222 New Member

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    I think you've been too charitable to Chase (btw, Chase is the only bank so far that has instituted this kind of policy). I would agree with you that to avoid what you called, "...consistently churn credit cards for the sign up bonuses...," it would be enough to have 24 month and no identical cards within that period rule but to reject people who had more than 5 of ANY credit cards with that period is in my view completely obnoxious! I would strongly urge the members of this community to lobby Chase --perhaps through Ben, who I believe is actively involved in the loyalty industries, including banks--to change their policies.

    I also disagree with your statement that Chase cards is worth having without sign-up bonuses: I don't believe any of them do...

    By the way, do you happen to work for the banking industry? You sound too sympathetic to them...If you follow their financial reports, Chase and other banks are making tons of money on those products, otherwise they would never offer them..
     
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  7. rickyw

    rickyw Well-Known Member

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    Ha, I definitely don't work in banking, far from it. I was just playing devil's advocate. Couple things to note. Chase is not the only one with a similar policy. Actually, I think Chase is the least restrictive. AMEX only allows you to receive a sign-up bonus once in a lifetime. At least Chase lets you get a bonus once the 5/24 has passed.

    For me personally, there are a couple cards that are worth having without the signup bonus. I used the Sapphire Reserve as an example because I spend several thousand dollars a month at restaurants (business expenses). I used to get 2x points on that, with the Reserve I get 3x. Sure, the sign-up bonus of 100,000 points was rich... but that extra bonus point at restaurants is a game changer for me long-term. I'll probably get an extra 30,000 Chase points from that alone this year.

    Here's a non-Chase example. I know people who use their Citi American Airlines Executive card for every single purchase to get the 10,000 EQMs. They could care less about the sign-up bonus, they see value in the benefit of elite qualifying miles.

    At the end of the day, I agree with you. It's a frustrating policy. I'm just being realistic and explaining my thoughts on why I don't think it will change. But, hey, I'd love to be proven wrong...
     
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  8. sgm111222

    sgm111222 New Member

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    I appreciate your reply, and I'm glad to hear that you're not associated with banking... Well, I guess you're really lucky that you spend several thousand dollars a month in restaurants as business expenses but I don't think there are many people like you. I would guess that the majority of the members of this community are average people with rather average income and expenses... I would also agree with you about Amex: they're very restrictive too : they don't grant signup bonuses if you had a similar card before. However, they constantly offer new products with rather attractive signup bonuses (for example, their relatively cards linked to Ameritrade and Scwab allow you to have those bonuses, so that is partly compensated for their restrictive policies). And most importantly, I think you underestimate the potential power of communities like this one: from my conversation with Chase executive team I got an impression that they would listen if there are enough people who raise their objections--they are actually quite sensitive to that). So my point is that rather than assuming that we can't do anything about Chase and other restrictive policies we should organize a community effort to change those policies. I do believe as a group we can do it, especially if we urge Ben who regularly speaks at the industries forums to voice our concern and frustration with this kind of policies. At those forums he could also enlist the support from the airlines like United which, as a result of those policies, would undoutedly loose some customers--as you know, once you signed up for a loyalty program, you would try to keep it, with or without credit cards...All and all, believe me the last thing the banks need is a bad publicity.
     
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  9. sgm111222

    sgm111222 New Member

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    BTW, do you have any suggestions as to how to get Ben's attention to this issue? I don't think he reads every post on this blog...
     
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  10. rickyw

    rickyw Well-Known Member

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    Maybe I'm too pessimistic and try to not get my hopes up about 5/24 changing! I was at 4/24, then the Chase Sapphire Reserve became my 5th. So lucky for me, I'm happy with the current cards in my wallet. But, no doubt, I'd love to see the rule go away, just in case a new card comes along that catches my eye.

    One of the reasons I follow Ben's site is because he reads all the posts. I follow a few other blogs, and Ben and the rest of the OMAAT crew are probably the best at responding to comments and posts. A lot of his posts will reference this forum when he writes. I think his e-mail is somewhere on the site too, if you want to try that.
     
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  11. sgm111222

    sgm111222 New Member

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    Well, it's good for you that it was the 5th card in got in two years, and you're happy with your current Chase cards.. But imagine, tomorrow for a limited time, Chase would offer a new product with 100K sign-up bonus--and you won't be able to get it, no matter what...
    Anyway, I have not been able to find Ben's email... Could you please help if you can? Thanks...
     
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  12. rickyw

    rickyw Well-Known Member

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    Lucky at onemileatatime dot net
     
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  13. sgm111222

    sgm111222 New Member

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    Thanks very much Ricky... appreciate your help. Will try to fight for all of us! You're welcome to join me at any time... the more the better..
     
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  14. David W

    David W Well-Known Member

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    The thing is, I dont think Chase has any specific written 5/24 policy. Even rejection letters aren't that specific. They just say that you're denied for having opened too many cards. Furthermore, a financial adviser can manually approve of the card but requires a review of your banking relationship with Chase and if they dont think you're profitable, they wont approve of it. Many people who are Chase Private Client's were approved but only after speaking to a financial adviser.
     
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  15. sgm111222

    sgm111222 New Member

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    You're wrong (or rather not very informed): Chase has a very SPECIFIC 5/24 rule: both their credit analysts and the members of the Executive team confirmed to me the existence of that policy...Yes, in their denial letter, they never explicitly state that reason for denial is the 5/24 rule, they simply say : "too many cards". Common! 5 cards from ANY bank in two years?! This is ridiculous! I don't know how anyone can defend that rule unless he (she) working for Chase....you're also wrong on the fact the a credit analyst can overrule that policy: that is not true! Chase assure me that the 5/24 policy has to be strictly followed...
     
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  16. David W

    David W Well-Known Member

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    specific as in is it written anywhere? i dont think ive seen it written in chase's t&c's anywhere but i could be wrong.
     
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  17. sgm111222

    sgm111222 New Member

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    The banks never published the internal rules or policies but if you know who to ask they usually confirm their existence...
     
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  18. David W

    David W Well-Known Member

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    true. but that makes it harder to fight, i think. glad youre trying to do something about it though!
     
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  19. sgm111222

    sgm111222 New Member

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    Thanks very much David! As I stated above in this thread, if more people like you and I would urge Ben, who I believe interacts with the industry, to work with Chase on changing their policy, I'm sure he would be able to succeed with that: the banks: they are actually very sensitive to their public image, and the communities like ours would demand the change, I'm convinced they would listen (Chase representatives actually confirmed that to me, informally of course). So I urge you--and anyone else you know who might be interested in this issue-- to contact Ben and voice your support of this initiative...
     
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