I hate to be the bearer of bad news, but I have bad news. If you don’t follow a quality credit card strategy when playing the points and miles game, it could cost you hundreds of thousands of points in travel rewards.
Because of credit card application limits like Chase’s 5/24 rule, it’s important to focus on Chase credit cards when starting out. If you don’t apply for Chase credit cards early, it will cost you later.
Let’s look at two thinkers – both starting their journey in the world of points and miles – to see a real example of how much you can lose by not focusing on Chase cards in the early stages.
Related: From credit novice to credit wizard: Here’s a 5-year strategy for rewards cards
Wrong way: Not focused on Chase
For our first example, let’s call this person Steve. Steve hears about points and miles, is surprised and jumps out of the obvious credit card scheme. When it’s time to apply for another card, Steve chooses credit cards that seem interesting, but he doesn’t have a long-term plan.
Steve also doesn’t understand the Chase 5/24 rule, so, he doesn’t get many cards from Chase before he becomes ineligible for more Chase cards.
Steve picks up the following credit cards:
| Card name | Welcome bonus | Bonus amount* |
|---|---|---|
| Chase Sapphire Preferred® Card | Earn 60,000 points after spending $4,000 in purchases in the first three months of account opening, | Up to $1,230 |
| Delta SkyMiles® Gold American Express Card | Earn 50,000 bonus miles after spending $2,000 in purchases in the first six months of card membership. | $600 |
| Citi Strata Premier℠ Card (see rates and fees) | Earn 70,000 bonus points after spending $4,000 on purchases in the first three months from account opening. A higher offer may be available through Citi.com. | $1,260 |
| Advantage® Aviator® Red World Elite Mastercard® | Earn 60,000 bonus miles after your first purchase and pay 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 in purchases in the first three months from account opening. | $1,388 |
| Total | 315,000 points and miles and a $300 statement credit | Up to $5,738 (including travel credit) |
*Amount based on TPG estimates as of November 2024 and not provided or updated by card issuer.
Advantage Aviator Red World Elite Mastercard information is independently collected by The Points Guy. The card information on this page has not been updated or provided by the card issuer.
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Steve has opened five credit cards and is now on the 5/24 limit, which means he can’t get any more credit cards from Chase right now. He cashed out 315,000 points and miles and statement credit, all together for a total of over $5,700 (based on TPG rates) – not bad. But Steve will be jealous when he sees what our second man is pulling.
Related: The best credit card acceptance bonuses right now
The right way: Focus on the Chase from the start
Our second person is Monique. Monique understands the importance of the Chase 5/24 rule and getting Chase credit cards now so she won’t have access to them later. So, Monique picks up five credit cards from Chase when she starts.
Here are the credit cards and bonuses collected by Monique:
| Card name | Welcome bonus | Bonus amount* |
|---|---|---|
| Chase Sapphire Preferred Card | Earn 60,000 points after spending $4,000 on purchases in the first three months of account opening | $1.5230 |
| United℠ Check Card | Earn 60,000 miles after spending $3,000 on qualifying purchases in the first three months of account opening | $810 |
| World of Hyatt Credit Card | Earn up to 60,000 bonus points: 30,000 points after spending $3,000 in purchases in the first three months from account opening, and up to an additional 30,000 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 100,000 bonus points: 75,000 bonus points after spending $4,000 in purchases in the first three months of account opening, and 25,000 bonus points after spending $20,000 in purchases in the first 12 months of account opening. | Up to $1,500 |
| Chase Freedom Flex® | Earn $200 in cashback after spending $500 in purchases in the first three months from account opening | $200 |
| Total | 270,000 points and miles plus $300 statement credit and $200 cash | Up to $4,925 (including travel credit) |
*Amount based on TPG November 2024 estimates (excluding Freedom Flex welcome offer) and not provided or reviewed by card issuer.
Monique earns 270,000 points and miles plus a $300 statement credit and $200 cash back. You’re in good shape for the Chase trifecta, and get welcome bonuses worth nearly $5,000.
Related: Best ways to spend your Chase 5/24 slots
Comparing results
From the five cards in the charts above, Steve is currently in the lead. However, in time, Monique will come out on top.
That’s because Steve is past 5/24 and can’t get Monique’s bonuses. However, Monique can get Steve’s bonuses in her second round, so she applies for all the cards Steve has applied for (except for the Chase Sapphire Preferred, which she already has open).
Monique can now add thousands of dollars more in welcome bonuses to non-Chase cards, while Steve won’t be able to apply for more Chase cards for the foreseeable future.
Related: How TPG employees with multiple credit cards handle Chase’s 5/24 rule
Bottom line
Ignoring 5/24 can be very expensive when starting out in this hobby, as seen in the examples above. If Steve wants to get Chase cards from Monique’s list, he’ll need to wait until she’s back under 5/24. That means not opening new credit cards for a while – welcome bonuses are lost during that waiting period.
The above list doesn’t take into account Chase’s excellent business credit card program, which is worth mentioning. You may be surprised to find that your side gig or freelance work may qualify for a business credit card. Steve and Monique can consider some of these cards while under 5/24, too.
Whether they open business credit cards or not, Monique’s strategy will provide the most value in the long run. By ignoring 5/24, Steve missed out on more than 200,000 bonus points and miles and a $200 bonus — worth up to $3,395. Wow.
Related: Looking to open a new Chase card? Here’s how to calculate your 5/24 standing
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