The Card Hobby In COVID-19 Times – Thoughts Beyond the Credits
The points and miles hobby has experienced dynamic changes throughout the last six months or so of COVID-19 events. In future years, I think we’ll be better able to appreciate the true depth of these impacts, rather than just a near-term look at all of the token credits the banks are providing (which are appreciated). But in these last several months, a few areas beyond the credits have stood out to me. Here are a few trends I’ve noticed in the card hobby in COVID-19 times.
How’s That 5/24 Rule Working Out For You?
I’ve previously described my apathy for Chase’s 5/24 rule. Here’s a refresher on the Chase 5/24 rule:
An applicant will not be approved for certain Chase cards if the applicant has opened five or more revolving accounts (including credit cards, lines of credit, etc.) in the past 24 months.
From my perspective, it seems that no other credit card application rule has changed consumer behavior (in this hobby, at least) more than Chase’s 5/24 rule. Chase basically outsourced their marketing to everyday consumers, particularly Chase cardholders and those who want to obtain Chase cards. These consumers self-select out of applying for other banks’ credit cards, choose to wait to apply and (hopefully) be approved for certain Chase cards, and encourage others to do the same.
Enter the Pandemic
Since COVID-19, I’ve heard many reports of Chase declining credit card applications, and doing so more often. These reports have been from a variety of customers, and primarily from two groups – those who have never reached 5/24, and others who have spent considerable time to get back under 5/24 (all the while giving up opportunities to apply for excellent welcome offers in the meantime). It’s a reminder that just because one is under 5/24 doesn’t mean Chase will approve him or her for a card.
In that scenario, does the 5/24 rule become the 5/Infinity rule, at least until individuals get the Chase cards they want? What should you do if you are unable to get your desired Chase card(s) while under 5/24? I think the best answer is to reevaluate your current situation. Are you tired of giving up great offers with other banks because you are waiting on the Chase cards? Do you still have a need for those Chase cards given how much travel has changed and may be affected in the next few years? Or has the sunk cost of time in getting under 5/24 mean so much that you will continue to wait on Chase card approvals? Plans change, and the pandemic’s effects on travel are a natural time to reevaluate your travel rewards goals, if you haven’t done so already.
Amex Continues to Deliver
Some of you may have gotten declined across different banks recently – I know I have. But throughout the pandemic, Amex has continued to approve our credit card applications. I know many don’t appreciate the games Amex has recently played with their clawbacks of temporarily-elevated bonus categories. Beyond that play, Amex continues to offer great rewards for customers. In addition to continued approvals, I’ve received consistent and increasing referral bonuses. Who saw 30k Membership Rewards referral offers coming? Definitely not me, but we have taken advantage of them twice since they arrived.
However, Amex lowering their credit card limit to 4 does sting a bit. Both my wife and I took substantial steps to slim up our Amex credit card profiles for maximum flexibility. Our biggest move was getting rid of redundant Hilton cards. Also, Amex’s slowness to update records resulted in a lack of instant approval for one card. We called and received approval, though. Big picture, Amex continuing to deliver on approvals and referrals has made stomaching the less desirable stuff easier.
Hello There, Bank of America
While we have received several new cards in the past year, there’s no doubt that the pandemic has slowed things down a bit. So much so, that I recently realized we are very close to Bank of America card eligibility again! Here’s Bank of America’s 7/12 and 3/12 rules:
- If you have a deposit account with Bank of America, your credit card application will be denied if you have 7 new cards in the past 12 months.
- If you do NOT have a deposit account with Bank of America, your credit card application will be denied if you have 3 new cards in the past 12 months.
Normally, even the 7/12 rule would be a challenge for us to meet. However, we’ll be under this rule in a matter of a few weeks. It may be worth reviewing your own eligibility for Bank of America cards, too. I’ll be going after Bank of America cards soon – stay tuned for which ones!
Discover Is Increasingly Inflexible
Discover has gotten stingier with the initial size of credit limits approved, and they have recently been unwilling to increase credit credit limits during the first cardmember year. This, along with negative changes to portals and decreasing Visa Gift Card denominations available online, has made the Discover Miles card increasingly trickier and decreasingly lucrative to use in the hobby. Yes, I will go for another one next year, but it’s long-term viability, especially at scale, is questionable.
Card Hobby in COVID-19 Times – My Favorite Card Through It All
I’ve gained lucrative rewards throughout the pandemic via Synchrony’s Banana Republic Visa Card. I received a ho-hum $30 or so welcome offer on this card when I obtained it last year. The ongoing promo offers are the real win here – 5x and sometimes 10x in great spend categories, including grocery stores. Of course, these targeted offers are YMMV. Having a family with growing little ones, the rewards are going to great use. The card is definitely a niche one, but it may be worth checking out for some of you!
Card Hobby in COVID-19 Times – Conclusion
While not an all-inclusive list, those are the major observations I’ve had in our hobby during the pandemic. Throughout good news and bad news in the hobby, it remains entertaining and lucrative. I appreciate it all! What other big trends in the hobby have you noticed over the past several months?
Lower Spend - Chase Ink Business Preferred® 100K!
Chase Ink Business Preferred® is a powerful card that earns 3X Ultimate Rewards points in a broad range of business categories on the first $150K in spend per year. Right now earn 100K Chase Ultimate Rewards points after Learn more about this card and its features!
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
“Invest” in URs, & yoi can turn around & find wonderful hotel/home/villa/condo/b&b/cottage vacay opportunities in your own backyard now on the Chase Travel Portal at a 33% discount (with the CSR). And when you are ready in our covid workd, you have the same opportunity with flights & experiences, too.
You will not find that sort of discount & opportunity with AMEX/Citi/Cap1 transferrable points. So if we all get real about earning & spending tranferable currencies now, & later, the best strategies lead to Chase. I have always been relieved my family left a 5/24 slot open for new Chase offers, because they are consistently the most rewarding. If you can’t financially qualify, understandable, but if your credit & number of inquiries are solid, Chase should be your first partner – you may not even need look further since they are an airline AND hotel leader.
don’t forget about the sears TYP card! 25x on up to $300/month in utilities Aug-Oct. constant 10x and 15x offers for groceries/online purchases/home improvement. Definitely the must lucrative card in my wallet.
David,
Yes, thanks for mentioning the Sears card! I know many are getting great offers from both the TYP and Shop Your Way versions.
The card hobby is pretty much dead. Why waste time amassing points when most aren’t going to travel for 2 years and we don’t know what the fares will be. I cashed out all my miles with the United to gift cards, got a Delta gift card with Sky miles that I sold at 90% of value, and got gift cards with Amex. Some of the ratios were not bad depending on the store. I rather not have miles sitting around and points doing nothing.
When I travel next, I want ultimate schedule flexibility and will just pay cash. 2 years to save up for business class and the Four Seasons somewhere. Traveling to Asia is going to be off the list for many people for 5 years just because of all the problems out of China or near (the plague in Mongolia). I’m not spending much so it is a waste to worry about points. 6% cash back with the BCP at supermarkets and 2% DoubleCash everywhere else. All other 10 cards are for balance transfer opportunities, although, none are available. Hopefully citi, bofa, and Chase will start easing up.
Jackson,
Thanks for chiming in. I can totally understand that the hobby seems dead to some. I think of the hobby as constantly evolving, and many existing and new opportunities present themselves. Regardless, I’m glad you have a system that works for you.
How did you liquidate United to gift cards and at what rate? I’ve been toying with the idea of it, but I don’t see a way to do it other than through United website for .003 per mile.
I did it in March. I saw the writing on the wall with airlines closing the Walmart/etc. gift card options in the redemption portal. I got about .007 per mile (70 cents on the dollar if valued at 1 cent per mile). I bought silver through Walmart (Apmex) so I have something worth more than 1 cent per mile (given the gains from 15 to 28). It worked out. I sold my delta gift cards with raise. The delta redemption was slightly less than 1 cent per mile. I walked away with about 80 cents on the dollar after raise fees. I cashed out my Amex points for various gift cards. Home Depot was 1 cent per MR.
I know all these miles and points can be worth a lot but I won’t be traveling until 2022. If fares for business are reduced, the very high redemptions won’t be as attractive.
Jackson, thanks. Did you have status for the .007 redemption? As a lowly silver, I only see it at .003, same for my wife who has no status.
No status. I think United changed the redemptions after they suspended them in April/May. 30 cents on the dollar is too low. That’s outrageous (rough situation for airlines so I can’t blame them for it, though. They don’t want to pay out cash and rather people use miles when things are more stable for the company).
Look I like points and miles as much as anyone and have gotten over 8 million FF miles and millions of hotel points (vast majority butt in seat or due to hotel stays over 35 years).
However there seems to be a view on this blog especially (and to a lesser extent on others) that the card companies exist to meet YOUR needs and not theirs. Look it is great when things align for both parties but they first and foremost have to look out for their interests. If that means cancelling cards, reducing limits or de lining applications so be it. No one gave you a God given right to get a credit card, let alone game the system for your benefit.
I’m so damn sick of hearing about all the problems people have applying for cards, meeting required sign up bonus amounts or, God forbid, that airlines/hotels don’t extend status or provide other benefits. Given that people are losing their jobs, being evicted and going hungry it comes across as really time deaf to keep whining about these issues.
I realize you need clicks but PLEASE give it a break!!!
AC you calling other people out of touch is quite ironic.
+1 (you beat me to it)
I saw his comment using a different name on the BofA shutdowns article and came here knowing he MUST have commented here as well. I was right. 🙂
Partially agree with you. Many in this points and miles community complain about changes that make it more difficult for us to take advantage of banks (credit cards), airlines, and hotel programs; it’s made into a moral issue and people say these companies are doing bad and hurting us. It’s very disingenuous because our whole operating principle is to cost banks/airlines/hotel programs more than they take in from us (or get an outsized advantage). I don’t like a lot of the changes because it hurts me, but these companies are not wrong or bad for doing them.
On the other hand, these companies run these reward programs knowing that a minority will profit from them and it’s a cost of doing business. It’s not wrong for us to take advantage of them and not wrong to discuss the changes on blogs.