The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Advertiser disclosure
The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Guides
Ignoring Chase’s 5/24 rule? Here’s how that could cost you hundreds of thousands of points
Ryan is a former TPG credit cards writer who has been around points and miles for several years and has published content at Miles to Memories, AwardWallet and The Points Guy. His wife joins him on many of his trips, and they enjoy snowboarding, diving, and seeing animals in the wild. When not traveling, Ryan is probably answering questions from his family about how he travels so much and whether this points & miles stuff is illegal.
Augusta Stone is a credit cards writer for TPG. She joined the TPG team in 2023 and is excited to take points and miles beginners with her on a journey toward maximizing rewards.
also contributed to this story
November 18, 2024 • 7 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
Related stories
Quick summary
The article compares two approaches to starting out with travel rewards credit cards, highlighting the importance of application order due to issuer restrictions.
One example shows a person who applies for various cards without a long-term plan, quickly reaching a limit that prevents further applications from a key issuer.
A second example demonstrates a strategic approach, focusing on cards from the issuer with strict application rules before moving to others, resulting in greater long-term value.
The analysis uses TPG’s November 2024 valuations to illustrate the significant difference in rewards earned based on strategy.
What to consider
Application restrictions, such as the 5/24 rule, can limit eligibility for certain cards if not prioritized early.
The article’s calculations do not include potential value from business credit cards, which may be available to those with side gigs or freelance work.
Some offers mentioned are no longer available, as noted in the article.
What you'll miss from the article
A detailed side-by-side comparison of two real-world strategies showing how application order can impact your total rewards over time.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
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 play the points and miles game, it could cost you hundreds of thousands of points in travel rewards.
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.
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. When it’s time to apply for another card, Steve chooses credit cards that seem interesting, but he 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.
ANDRESWD/GETTY IMAGES
Steve picks up the following credit cards:
Card name
Welcome bonus
Value of bonus*
Chase Sapphire Preferred® Card
Earn 100,000 points after spending $5,000 on purchases in the first three months of account opening,
$2,050
Delta SkyMiles® Gold American Express Card
Earn 80,000 bonus miles after spending $3,000 on purchases in the first six months of cardmembership
$960
Citi Strata Premier℠ Card (see rates and fees)
Earn 75,000 bonus points after spending $4,000 on purchases in the first three months from account opening.
Earn 60,000 bonus miles after making your first purchase and paying the $99 annual fee in full, both within the first 90 days
$960
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
375,000 points and miles plus a $300 statement credit
Up to $6,438 (including the travel credit)
*Value is based on TPG’s November 2024 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.
Steve has opened five credit cards and is now at the 5/24 limit, meaning he can’t get any additional credit cards from Chase at this point. He hauled in 375,000 points and miles and a statement credit, all together at a value of up to more than $6,400 (based on TPG's valuations) — not bad. But Steve will be jealous when seeing what our second person pulls in.
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.
JULPO/GETTY IMAGES
Here are the credit cards and bonuses Monique accrues:
Card name
Welcome bonus
Value of bonus*
Chase Sapphire Preferred Card
Earn 100,000 points after spending $5,000 on purchases in the first three months of account opening
$2,050
United℠ Explorer Card
Earn 80,000 bonus miles after spending $3,000 on purchases in the first three months of account opening
$1,080
World of Hyatt Credit Card
Earn up to 60,000 bonus points: 30,000 points after spending $3,000 on purchases in the first three months from account opening, plus up to 30,000 more points by earning 2 points per dollar on purchases that normally earn 1 point per dollar (up to $15,000)
Up to $1,020
Aeroplan® Credit Card
Earn up to 70,000 bonus points: 60,000 bonus points after spending $3,000 on purchases in the first three months of account opening, plus 10,000 bonus points after you pay your annual fee renewal in full and it posts to your account
Up to $1,050
Chase Freedom Flex®
Earn $200 cash back after spending $500 on purchases in the first three months from account opening
$200
Total
310,000 points and miles plus $200 cash
Up to $5,400
*Value is based on TPG’s November 2024 valuations (excluding the Freedom Flex's welcome offer) and has not been provided or reviewed by the card issuer.
Monique earns 310,000 points and miles plus $200 in cash back. She is well positioned to obtain the Chase trifecta, and she netted more than $5,000 worth of welcome bonuses.
From just these five cards in the charts above, Steve is ahead right now. In the long run, however, Monique will come out ahead.
That’s because 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).
ANDRIJA NIKOLIC/GETTY IMAGES
Monique can now add thousands more dollars in welcome bonuses in non-Chase cards, while Steve won’t be able to apply for any more Chase cards for the foreseeable future.
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 welcome bonuses during that waiting period.
The lists above don’t consider Chase's excellent lineup 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 up to $3,395. Ouch.
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
