Is Chase Worth Our Business?

It looks like Chase has fully implemented their 5/24 rule across the board and for me, this means Chase may be dead. The 5/24 rule for those unaware, means that if you have opened more than 5 credit cards in the last 24 months, Chase will no longer allow you to open a new card with them. 



Your immediate reaction may be that, "I haven't opened 5 cards in the last 24 months with Chase, I'm good to go..." I thought that too, right up until my last application was denied because of my credit card history. My Chase account only has 4 cards... so where are they looking? They are looking at all credit cards everywhere, they are pulling it from your credit report. That means no 100,000 point offer for me, I can't get the card period unless I upgrade the current Chase Sapphire Preferred to the Reserve version.  

While I understand why they did this, Chase is one of those companies that has a massive share of the travel card market, for whatever reason. I think that Chase ranks the lowest of Citi, Amex and Chase, I'd use Citi or Amex before using a Chase card... I just don't like Chase. Their treatment of phone payment systems like Android Pay has been crazy and I've been turned off to them since then. Their point structure has been terrible up until the reserve card, which is why I'm always confused by people loving the Sapphire card so much, the points just aren't great.  

This also means I shouldn't close any current Chase cards, because I may never be able to open them again. While Chase has every right to handle their business how they want, so do I. Over the past 6+ months, Chase cards have become almost completely unused for me. The Sapphire card takes a roll as my restaurant card only and the occasional other pruchase when another card isn't accepted. Chase's only really great perk on the Sapphire card that can't be found elsewhere is their fantastic rental car insurance. 

So is Chase worth our business anymore? Well that is a mixed answer from me. Yes and No. Yes in the case where I want their Ultimate Rewards points, but outside of that, I'd almost have to completely stop opening credit cards to use Chase bonus points. That is unlikely to happen when there are so many options available to me. So on a certain level, Chase cards will essentially be ignored. 

So why does Chase hate credit card churners? There are a few simple reasons for that. First off, we tend to pay our credit cards off, no interest can be charged against us, no fees can be levied, we tend to hold balances at zero, because otherwise the rewards aren't worth it. Also, points and miles are our goals, so we tend to jump around alot, meaning that credit card companies have a difficult time getting us to regularly spend on a card where they can then collect transaction fees. We are probably the least ideal client for them to have... but we do spend on their card, we do provide income for them... so is it a good idea for Chaser to kill a relationship with customers? That's hard too say at this point. 

Chase is a bit contradictory here though. Another points blog, "The Points Guy" was used by Chase to announce the new Chase Sapphire Reserve card. I find this to be an incredibly backhanded move by Chase, and one that I dislike them for immensly. This may be a case of the PR department and policy department not knowing what each other is doing. However, to advertise a credit card to an audience that will likely not qualify under your Chase's new policy is not only a horrible move, but it also increase the chances of having people initiate a hard pull on their credit report and then being denied a credit line for it. It's boarderline unethical... but in my eyes this is par for the course on Chase. 

In the end, I'll use Chase only where it really benefits me, outside of that, Chase is going to take an even deeper backseat for me than they had before.