It’s Worth Giving Up A Chase 5/24 Slot For These Non-Chase Credit Cards
Despite the value of a Chase 5/24 slot for credit credits, there are some non-Chase cards worth giving up a 5/24 slot to get. The list is not huge, to be clear. Today, we’ll break down when it is worth giving up a Chase 5/24 slot to get a card from another bank. First things first, let’s look at what a Chase 5/24 slot is and why we care about this.
Note: Some Of These Offers May Have Ended Or Changed Since Publishing
What Is A Chase 5/24 Slot?
Foundational to this discussion is understanding the Chase 5/24 rule. You can summarize the rule as follows:
If you have opened more than 5 credit cards in the last 24 months, you will not be approved for a credit card with Chase.
There are certain exceptions to this rule, but they are exceptions. Let’s focus on the rule / the majority. 5 credit cards in 24 months=5/24. If you have 5 or more, Chase will automatically deny your applications. So…what counts in this rule, and which cards don’t add to your total? Simple answer: if it shows up on your credit report, it counts. Kohl’s store card, Capital One credit card…any type of credit or store card that shows up counts. Some business credit cards count, while some don’t–again, it depends on whether they show up on your personal credit report.
Thus, since you can only get 5 personal credit cards in 24 months before Chase cuts you off, these 5 spots become pretty valuable. The so-called “5/24 slot” of which cards you want to use these spots for are worth planning and considering for best value. That’s why we recommend starting with Chase credit cards in our beginner’s guide. It’s also why we talk about not falling for low-value credit cards and the decision process for which credit card to get next. It’s important to not throw away a valuable Chase 5/24 slot.
That being said, there are times when it’s worth giving up a Chase 5/24 slot for some other card.
Why This Matters – Don’t Sacrifice Long-Term Value
Bottom line up front: the answer is “not often”. Numerous people fall for low-hanging fruit in this hobby, getting credit cards that can wait for later. Non-Chase credit cards that will eat up one of your 5/24 slots need to be very valuable. The local department store card isn’t one of them. The Costco Anywhere Visa Card or other item with no welcome offer is not going to cut it. I understand that these cards can offer great value (5% back at a store = more money in your pocket). However, the true value of these cards should be weighed against the number of free hotel nights or free flights you would be giving up.
Ask yourself: if I give up a Chase 5/24 slot for this card, will I come out ahead financially? Or can this card wait?
Let’s assume you sacrifice a Chase 5/24 slot for a department store card. If you get 5% back at that store, how much do you spend there a year? (Also, will it encourage you to spend more, something called lifestyle creep, because you’re getting 5% back?) Now, is that 5% back a higher dollar amount than 5-6 free hotel nights or 2 round-trip airplane tickets? Likely no.
And the same can be said for the “low-hanging fruit” offers I alluded to. Maybe that Delta or American Airlines card offer seems big and easy to attain. Sure. But it will be there later. If you can get it later, you’re sacrificing a valuable slot to attain something you could still get later. You traded getting 2 credit card bonuses for just getting 1!
These Credit Cards Are Worth A Chase 5/24 Slot
So, when is it worth giving up a Chase 5/24 slot for something else? When there’s big value to be had. If a “highest welcome offer ever” rolls around for a limited time on a great card, that’s worth considering. If you get targeted for the unicorn of this hobby (elevated offer on the American Express Platinum Card), get it, because you might spend years waiting for it to never show up again. Here’s a look at what I consider “worth it” for giving up these precious 5 spots.
Elevated Offers on Amex Platinum Card
The American Express Platinum Card has a lot to love. Tons of perks and travel rewards. Earns valuable Membership Rewards points. But the standard welcome offer of 60,000 points is not that great. People sometimes see elevated welcome offers of 100,000 points. That is worth jumping at, because it offers huge value. Here’s a look at what I’d do with 100,000 Membership Rewards.
If 100k is “worth it”, then the recent offer of 125,000 points is a no-brainer. If you get targeted for this, you should take it. Like…now. If you close your browser, it might never come back around. Even the Resy offer is worth jumping on if you weren’t targeted.
Highest-Ever Offer on Capital One Venture Card
The highest-ever offer for the Capital One Venture Card ended yesterday. The card was seriously worth considering getting with the 100,000 point offer. Even if it required a large $20,000 in spend it provided a 7% return for that spend. That is tough to beat, especially if you focus it on non bonus spending.
Even at the current Capital One Venture offer of 60,000 points after $3,000 in spend it may be worth it to some to get. That is still a value of $660 when the spending is complete and it is tough to get if you have too many recent applications. Is that more valuable to you, especially since it works on all travel, than grabbing a IHG Premier card etc. with that last slot. Only you can decide.
Tiered / Elevated Welcome Offer on Alaska Airlines Visa
I recently received a tiered/elevated welcome offer for this card. The Alaska Airlines Visa Card from Bank of America earns Alaska Airlines miles, which are great for flying premium cabins with their partners. The normal offer is 40,000 miles after spending $2,000 in 90 days. Totally not worth it.
However, the tiered offer I received is juicy. Spend $2,000 in 90 days, then $8,000 total in 6 months. Earn 40,000 miles after the first tier and then another 25,000 miles after the 2nd. After the spend and the bonus, a minimum 73,000 Alaska miles is enough for a lot of premium cabin flight options with JAL, Cathay Pacific, Qantas, etc. This is worth considering if you’re under 5/24 with Chase.
When Elevated Offers Aren’t Worth It
Not every elevated offer is worth jumping at. This is especially true if you’re under 5/24 or if it seriously alters you’re eligibility with stingy banks (see rules here). If the offer is 5,000 more airline miles than normal, that’s not a huge deal. Just because the offer is higher doesn’t mean it’s significant, so do the math. And compare it to what you’d have to give up. Can you get that card later? Maybe you’d get 5,000 less miles on that card, but you’d have that AND the Chase card. You came out ahead.
Final Thoughts
As with everything in this hobby, there are not a lot of hard & fast rules. Many things are in flux, because everyone’s situation is different. That being said, I firmly believe that starting with Chase credit cards is the best, because of the 5/24 rule. Getting the best cards possible and extracting maximum value during that time is something you should plan well.
Despite this, there are situations where giving a Chase 5/24 slot to a card from another bank can make sense. If you get a “best ever” offer from a bank on a credit card that provides outsized value, do the math. Consider your situation, and see if it works for you. For me, these 3 are solid examples of when it can be worth it. In my view, most others aren’t worth it.
Let me know if you agree or disagree with my cards that are worth Chase 5/24 slots.
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That is the best Alaska offer I have heard of, but I think higher bonuses will become the norm next year if there is a devaluation of Alaska miles when it joins OneWorld.
I’m finally under 5/24 in 9 moths, so I’m patiently waiting…..
I assume Chase rebates more to bloggers than other companies since they all bow down to Chase and act like the 5/24 rule is sacred. Sure you need to understand the rules but everyone is different. First of all I have no interest in cash back cards since retired and financially set (plus for the next generation). I focus on travel benefits. With Chase I have the Sapphire Reserve (of course, Marriott Brilliant and IHG Premier. I’m more into Membership Rewards so have the Amex Platinum, Amex Gold, Delta Platinum and Hilton Surpass cards from Amex. Also just recently burned a potential 5/24 spot for the Frontier MC which many would think is laughable but I fly them occasionally (when I can use a really cheap ticket for a short flight), they expire miles after 6 months and this was a way to keep them alive (plus 40,000 miles with $500 spend was well worth $79 a year). I’ll likely never use the card but it has already paid for itself.
I realize there are ways to better optimize spend but I have 3 regular cards (other 5 are stored away unless needed) – Amex Gold (4x on groceries and dining), CSR (travel) and Hilton Surpass (gas 6x plus non-bonused spend to get to $40,000 spend on the card a year which gives me Diamond status (already lifetime Titanium on Marriott). People may say $40,000 on that card doesn’t max value but if you use TPG rating of .06 cent and you get 3x on all spend that is 1.8 cent for each dollar or about what Ultimate points and Membership Rewards are worth (again only unbonused spend like insurance, my daughter’s apartment rent in Chicago, etc.).
To everyone their own but I am fine with what I have and no problem being under 5/24 until November 2021. My card selection more than covers me and I also have around a million AA miles, am lifetime on DL and AA plus top level in 6 hotel programs (with somewhere between 150,000 and 500,000 points in most of them) so I’m good without sweating anything from Chase.
What you said is exactly my point, so I think we agree. People act like this rule is carved in stone, and I don’t think it is. If something works for you and there’s value for your situation, go for it. No 2 people in this hobby are the same, and it irks me when people act like we all need to do the same things the same way. If a card meets a need you have, that’s the best card for you.
I have an offer for the Alaska Business card. 40K miles and a $200 statement credit for a $2k spend in 90 days. What do you think about that one?
Jim F – a good offer. The 40k miles are standard, but the statement credit is a new thing I’ve seen lately. It’s a good offer, and it won’t take up a 5/24 slot (if you’re under 5/24).
Why not the Alaska Business Card instead of the personal?
Carl – the Alaska business card won’t take up a 5/24 slot, because it won’t report to your personal credit report.
I totally disagree that the capital one is better then ihg premier ….I’ve used the 4th night free to save over 1,000 this year
Capital one will get you 600.00
Ihg premier will get you 20 nights in cat 1 with 140,000 …..20 x 80.00 a night 1600.00 from bonus and then ongoing 4th night free
CJ – The point is not that these cards are better than every Chase card in a 1-to-1 comparison. The point was that it is worth giving up a 5/24 slot (which many people would say you should never ever do) if certain offers come around. These are the examples where I think it could be worth busting 5/24 with a non-Chase card, not that they are better than all Chase cards across the board. Hope that makes sense.
Good post. People should always do these kinds of benefit analysis and unfortunately most bloggers just push credit cards because they earn referrals regardless of whether or not it makes sense for the reader
Chris – the good thing is that we have writers who even disagree with one another on some topics or approach travel totally differently, so that helps us approach things from different angles. Glad you find it beneficial!