I hate to be the bearer of bad news, but I have bad news. If you aren’t following a quality credit card strategy when you start in this hobby, it could cost you 200,000 points. Put another way: You could lose $3,716 in value.
Due to its credit card application restrictions like the 5/24 rule, it’s important that you focus on Chase credit cards when starting out in this hobby. If you aren’t applying for Chase credit cards early on, it will cost you in the long run.
Let’s look at two hypothetical people — both beginning their journeys in the world of points and miles — to see a real example of just how much you could lose by not focusing on Chase cards in the beginning stages.
Related: From credit newbie to credit wizard: Here’s a 5-year strategy for rewards cards
The wrong way: Not focusing on Chase
For our first example, let’s call this person Steve. Steve hears about points and miles, gets excited and jumps in with no discernible credit card strategy. Steve chooses credit cards that seem interesting when it’s time to apply for another card but doesn’t have a long-term strategy.
Steve also doesn’t understand the Chase 5/24 rule well and therefore doesn’t get many cards from Chase before becoming ineligible for more Chase cards.
Steve picks up the following credit cards:
| Card name | Welcome bonus | Value of bonus* |
|---|---|---|
| Chase Sapphire Preferred Card | Earn 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening. | $1,200. |
| Delta SkyMiles® Gold American Express Card | Earn 70,000 bonus miles after spending $2,000 on purchases in the first six months of card membership. | $987. |
| Citi Premier® Card | Earn 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening. | $1,020. |
| AAdvantage® Aviator® Red World Elite Mastercard® | Earn 60,000 bonus miles after making your first purchase and paying the $99 annual fee in full, both within the first 90 days. | $1,062. |
| Capital One Venture X Rewards Credit Card | Earn 75,000 bonus miles after spending $4,000 on purchases in the first three months from account opening. | $1,388. |
| Total | 325,000 points and miles. | $5,657. |
* Value is based on TPG’s latest valuations and has not been provided or reviewed by the card issuer.
The information for the AAdvantage Aviator Red World Elite Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
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Steve has opened five credit cards and is now past the 5/24 limit, meaning he can’t get any additional credit cards from Chase at this point. He hauled in 325,000 points and miles at a value of over $5,600 — not bad. However, Steve will be jealous when seeing what our second person pulls in.
The right way: Focusing on Chase from the start
Our second person is Monique. Monique understands the importance of the Chase 5/24 rule and getting Chase’s credit cards now since they will be inaccessible to her later. Thus, Monique picks up five credit cards from Chase when starting out.
Related: The best ways to use your Chase 5/24 slots
Here are the credit cards and bonuses Monique accrues:
| Card name | Welcome bonus | Value of bonus* |
|---|---|---|
| Chase Sapphire Preferred Card | Earn 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening. | $1,200. |
| United Explorer Card | Earn 50,000 bonus miles after spending $3,000 on purchases in the first three months from account opening. | $605. |
| World of Hyatt Credit Card | Earn up to 60,000 bonus points. Receive 30,000 bonus points after spending $3,000 on purchases in your first three months from account opening. Plus, earn 2 points per dollar on purchases that normally earn 1 point per dollar — up to $15,000 of these purchases in the first six months from account opening. | $1,020. |
| Aeroplan Credit Card | Earn up to 100,000 points: 60,000 points after spending $4,000 on purchases within three months from account opening and 40,000 more points after spending $20,000 on purchases in the first 12 months from account opening. | $1,500. |
| Chase Freedom Flex | Earn a $200 cash bonus after spending $500 on purchases in the first three months from account opening. | $200. |
| Total | 270,000 points and miles + $200 cash. | $4,525. |
* Value is based on TPG’s latest valuations and has not been provided or reviewed by the card issuer.
Monique earns 270,000 points and miles plus $200 in cash. She is well positioned to obtain the Chase trifecta, and she netted over $4,500 worth of sign-up bonuses.
Related: How TPG staffers with the most credit cards handle Chase’s 5/24 rule
Comparing the results
From just these five cards in the charts above, Steve is ahead right now — $5,657 is more than $4,525. In the long run, however, Monique will come out ahead.
Steve is past 5/24 and can’t get Monique’s bonuses. However, Monique can obtain Steve’s bonuses in her second round, so she applies for all the cards Steve has applied for (minus the Chase Sapphire Preferred, which she already opened).
Monique adds $4,457 worth of welcome bonuses — a new total of $8,982. Here’s the final comparison:
- Monique: 535,000 points and miles plus $200 cash ($8,982 in value).
- Steve: 325,000 points and miles ($5,657 in value).
Related: When should you ignore Chase’s 5/24 rule?
Bottom line
Ignoring 5/24 can be costly when starting out in this hobby, as seen in the examples above. If Steve wants to get the Chase cards on Monique’s list, he’ll need to wait until he falls back under 5/24. That means not opening new credit cards for a while — forgoing sign-up bonuses during that waiting period.
The lists above don’t consider Chase’s excellent line-up of business credit cards, which we should mention. You may be surprised to find out that your side gig or freelance work would qualify for a business credit card. Steve and Monique could consider some of these cards while under 5/24, too.
Whether they open business credit cards or not, Monique’s strategy will provide much more value in the long run. By ignoring 5/24, Steve missed out on more than 200,000 extra points and miles and a $200 bonus — worth a total of $3,325. Ouch.
Related: Want to open a new Chase card? Here’s how to calculate your 5/24 standing
