Navigating the world of credit card rewards can be overwhelming, but for those of us who love to travel, the rewards are well worth the effort. One rule that every serious points and miles enthusiast needs to understand is Chase’s 5/24 rule. I can’t stress enough how crucial this rule is to crafting a successful credit card strategy. Simply put, if you’ve opened five or more credit cards (from any bank, not just Chase) in the past 24 months, Chase will likely deny your application for a new card. It’s an unwritten rule, but trust me, it’s very real. So, how do we play this game to our advantage? Let’s dive in!

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Understanding Chase’s 5/24 Rule and Why It Matters

Before we get into the nitty-gritty, let’s solidify our understanding of the 5/24 rule. Because of Chase’s restrictions on credit card applications, prioritizing Chase cards early in your credit card journey is paramount. I always tell people to get their Chase cards first! The 5/24 rule essentially means that to maximize your rewards potential with Chase, you need to carefully plan your applications. I consider this rule to be a gatekeeper to some of the best travel rewards cards on the market. So, understanding the rule is not just helpful but essential.

This rule forces you to strategize. You have limited “slots” to obtain Chase cards before hitting that 5/24 limit. Therefore, I always recommend prioritizing cards that offer the most long-term value and align with your spending habits and travel goals. Furthermore, understanding which cards don’t count towards your 5/24 limit, like certain business cards, opens up even more possibilities, which we’ll discuss later.

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Choosing Your Anchor: Sapphire Preferred or Sapphire Reserve?

When building a credit card portfolio, selecting an “anchor” card is a critical first step. This is the card you’d keep above all others – the one that provides the most value and flexibility. Chase offers two incredible choices for this role: the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve®. I personally agonized over this decision when I first started out!

The Sapphire Preferred is often a great starting point due to its lower $95 annual fee. It earns valuable Chase Ultimate Rewards points and comes with benefits like bonus points on dining, select streaming services, and online groceries. You’ll also get a boosted point value when redeeming for travel through Chase Travel.

On the other hand, the Sapphire Reserve is the premium option, boasting a higher $550 annual fee but loaded with perks to match. These include a generous annual travel credit, access to airport lounges, higher earning rates on travel and dining, and an even higher point value when redeeming for travel through Chase Travel. For frequent travelers like myself, the Sapphire Reserve is often worth the investment, as I easily offset the annual fee with the travel credit and lounge access.

Consider this: If you travel frequently and value premium benefits, the Sapphire Reserve is likely the better choice. However, if you’re more budget-conscious or new to travel rewards, the Sapphire Preferred offers excellent value at a lower price point. To summarize, I’d suggest doing a spending analysis to determine which card truly aligns with your lifestyle.

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Unleashing the Power of Chase Freedom Cards

Once you’ve chosen your Sapphire card, it’s time to consider adding cards that excel in everyday spending categories. The Chase Freedom Flex® and Chase Freedom Unlimited® are two fantastic no-annual-fee options that can significantly boost your Ultimate Rewards earnings. I use these two cards in tandem to maximize my rewards!

The Freedom Unlimited offers a straightforward 1.5% cash back (which translates to 1.5x Ultimate Rewards points if you have a Sapphire card) on all purchases. This makes it an ideal card for spending that doesn’t fall into any bonus categories.

The Freedom Flex, however, takes things to the next level with its rotating quarterly bonus categories. These categories typically offer 5% cash back (or 5x Ultimate Rewards points) on up to $1,500 in spending per quarter. Past categories have included gas stations, grocery stores, restaurants, and more. To truly maximize the Freedom Flex, it is important to remember to activate your card each quarter.

By combining the Freedom Unlimited for everyday spending and the Freedom Flex for bonus categories, you can create a powerful points-earning engine. I personally use the Freedom Unlimited for all my non-bonus spending and carefully track the Freedom Flex categories each quarter to ensure I’m maximizing my rewards. Don’t be afraid to be strategic – plan your spending around the bonus categories to rack up those points!

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Don’t Overlook Chase Ink Business Cards

This is where things get interesting! Many people mistakenly believe they aren’t eligible for business credit cards. However, if you have any kind of side hustle – even something as simple as selling items online or doing freelance work – you may qualify. I urge you not to overlook these cards.

Chase Ink business cards offer lucrative rewards and, crucially, often don’t count towards your 5/24 limit (although you must be under 5/24 to be approved for them). This means you can potentially add multiple Ink cards to your portfolio without impacting your ability to get other Chase cards.

The Ink Business Preferred® Credit Card is a popular choice, offering bonus points on travel, shipping, internet, cable, and phone services. Other Ink options, such as the Ink Business Cash® Credit Card and the Ink Business Unlimited® Credit Card, offer different bonus categories and perks to suit various business needs.

I firmly believe that exploring Chase Ink cards is a game-changer for maximizing your rewards. Carefully assess your business spending and choose the Ink card that best aligns with your needs. Remember, these cards can help you earn a ton of points without jeopardizing your 5/24 status.

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Strategically Adding Airline and Hotel Credit Cards

With your core Ultimate Rewards-earning cards in place, you might have a few 5/24 slots remaining. Now’s the time to consider adding co-branded airline and hotel credit cards that align with your travel preferences. I personally love the perks these cards offer!

Consider which airlines you fly most frequently or which hotel chains you prefer. Airline cards often offer benefits like free checked bags, priority boarding, and bonus miles on flights. Hotel cards can provide elite status, free night awards, and other perks that enhance your hotel stays.

For example, if you frequently fly Southwest, the Southwest Rapid Rewards® credit cards could help you earn the coveted Southwest Companion Pass. Similarly, if you’re loyal to a particular hotel chain like Marriott or Hyatt, their co-branded credit cards can unlock valuable elite status benefits.

Carefully evaluate the benefits and earning structures of different airline and hotel cards to determine which ones offer the most value for your travel habits. I often recommend focusing on cards that provide benefits you’ll actually use, rather than simply chasing the biggest welcome bonus.

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Final Thoughts: Maximize Your 5/24 Slots

The Chase 5/24 rule might seem restrictive, but it’s really just an incentive to be strategic and thoughtful about your credit card applications. By understanding the rule, prioritizing your applications, and carefully selecting cards that align with your spending habits and travel goals, you can maximize your rewards and unlock incredible travel experiences. I hope I have empowered you with the knowledge to conquer the 5/24 rule. So go forth, strategize, and start earning those rewards!