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 starting this hobby, you could lose 200,000 points. In other words: You could lose $3,716 in value.
Due to it credit card app restrictions like 24/5 luật ruleIt’s important that you focus on Chase credit cards when getting started in this hobby. If you don’t sign up for a Chase credit card in the first place, it will cost you in the long run.
Consider two hypothetical people—both starting their journey in the world of points and miles—to see a real-life example of how much money you could lose if you didn’t focus on your Chase card during the period. head.
Related: From credit novice to credit wizard: Here’s a 5-year strategy for rewards cards
Wrong Way: Not Focusing on Chase
For our first example, let’s call this person Steve. Steve heard about points and miles, got excited and jumped in without a clear credit card strategy. Steve picked up credit cards that seemed interesting when it came time to get another, but didn’t have a long-term strategy.
Steve also didn’t understand the Chase 5/24 rule well and therefore didn’t get many cards from Chase before being ineligible for more Chase cards.
Steve chooses the following credit cards:
| Name card | welcome bonus | Bonus Value* |
|---|---|---|
| Chase Sapphire Priority Card | Earn 60,000 bonus points after spending $4,000 on purchases in the first three months of account opening. | $1,200. |
| Delta SkyMiles® Gold American Express Card | Earn 70,000 bonus miles after spending $2,000 on purchases during the first six months of your card membership. | $987. |
| Citi Premier® Card | Earn 60,000 bonus points after spending $4,000 on purchases in the first three months of account opening. | $1,020. |
| AAdvantage® Aviator® Red World Elite Mastercard® | Earn 60,000 bonus miles after making your first purchase and paying the full $99 annual fee, both within the first 90 days. | $1,062. |
| Capital One Venture Rewards Credit Card X | Earn 75,000 bonus miles after spending $4,000 on purchases in the first three months of account opening. | $1,388. |
| total | 325,000 points and miles. | $5,657. |
* Value based on TPG . latest valuation and has not been offered or reviewed by the card issuer.
Information about the AAdvantage Aviator Red World Elite Mastercard card has been independently collected 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 over the 5/24 limit, meaning he can’t get any more credit cards from Chase at this time. He earned 325,000 points and miles worth more than $5,600 – not bad. However, Steve will be jealous when he sees what our second person pulls in.
The Right Way: Focus on Chase from the Beginning
Our second is Monique. Monique understands the importance of the Chase 5/24 rule and gets Chase’s credit cards now because she won’t be able to access them later. So Monique picked up five credit cards from Chase at the start.
Related: Best ways to use your Chase 5/24 slot machine
These are the credit cards and bonuses that Monique accumulates:
| Name card | welcome bonus | Bonus Value* |
|---|---|---|
| Chase Sapphire Priority Card | Earn 60,000 bonus points after spending $4,000 on purchases in the first three months of account opening. | $1,200. |
| United Explorer card | Earn 50,000 bonus miles after spending $3,000 in purchases in the first three months of account opening. | $605. |
| Hyatt World Credit Card | Earn up to 60,000 bonus points. Get 30,000 bonus points after spending $3,000 on purchases in the first three months of account opening. Additionally, earning 2 points per dollar on purchases typically earns 1 point per dollar — up to $15,000 on these purchases during the first six months of account opening. | $1,020. |
| Airplane credit card | Earn up to 100,000 points: 60,000 points after spending $4,000 on purchases within three months of account opening and another 40,000 points after spending $20,000 on purchases within the first 12 months of account opening. | $1,500. |
| Chasing Freedom Flex | Earn $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 based on TPG . latest valuation and has not been offered or reviewed by the card issuer.
Monique earns 270,000 points and miles plus $200 in cash. She’s well positioned to get Chase trifectaand she earned over $4,500 in sign-up bonuses.
Related: How TPG employees with the most credit cards handle Chase’s 5/24 rule
Compare results
From just these five cards in the charts above, Steve is currently leading – $5,657 more than $4,525. However, in the long run, Monique will take the lead.
Steve passed May 24th and could not claim Monique’s bounty. However, Monique was able to get Steve’s bonus in her second round, so she applied to all cards Steve signed up for (except the Chase Sapphire Preferred she opened).
Monique adds a welcome bonus of $4,457 — a new total of $8,982. Here is the final comparison:
- Monique: 535,000 points and miles plus $200 cash ($8,982 value).
- Steve: 325,000 points and miles ($5,657 in value).
Related: When Should You Ignore Chase’s 5/24 Rule?
bottom line
Ignoring May 24th can be expensive when starting this hobby, as seen in the examples above. If Steve wants to get the Chase cards on Monique’s list, he’ll have to wait until he returns under May 24. That means not opening a new credit card for a while – giving up the sign-up bonus in the meantime.
The above lists do not consider Chase’s Excellent Line of Business Credit Cards, which we should mention. You may be surprised to learn that your side job or freelance job will Eligible for a business credit card. Steve and Monique may also consider some of these cards when the 24/5 isn’t enough.
Whether they open a business credit card or not, Monique’s strategy will deliver more value in the long run. By skipping May 24, Steve missed out on over 200,000 points and extra miles and a $200 bonus — $3,325 in total. Oh.
Related: Want to open a new Chase card? Here’s how to calculate your 5/24 status
