First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

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barberakb
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First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by barberakb »

So here is what I got from one site "While the exact rules vary by card, as a general rule of thumb you’re eligible for the bonus on a given card if you haven’t opened or closed the card in the past 24 months. So the bonuses aren’t “once in a lifetime,” but you do have to wait two years after you applied for or canceled a card before you’re eligible for a bonus again."

Basically what I was thinking about doing is canx my Marriott rewards card I have had for like 4 years and applying for a new one to get their current 100,000 point bonus.

But I am trying to figure out if I need to apply before or after I canx my card. If I canx my card now do I have to wait 24 months before reapplying?

I called Marriott but they seemed confused and didn't really help me out...

Thanks!
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David Jay
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by David Jay »

First off, welcome to the forum. You will find a lot of knowledge about investing (and a lot of opinions on lifestyle :happy )

I can't provide any specific help, but the reason affinity cards offer the bonuses is to attract new customers. The intent of the bonuses is not to recycle existing customers. While there may be ways to get around the rules, the spirit of the program is to attract new customers.

I am not surprised that Marriot didn't want to provide clarity on how to circumvent the spirit of the program.
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by giesen5 »

barberakb wrote:So here is what I got from one site "While the exact rules vary by card, as a general rule of thumb you’re eligible for the bonus on a given card if you haven’t opened or closed the card in the past 24 months. So the bonuses aren’t “once in a lifetime,” but you do have to wait two years after you applied for or canceled a card before you’re eligible for a bonus again."

Basically what I was thinking about doing is canx my Marriott rewards card I have had for like 4 years and applying for a new one to get their current 100,000 point bonus.

But I am trying to figure out if I need to apply before or after I canx my card. If I canx my card now do I have to wait 24 months before reapplying?

I called Marriott but they seemed confused and didn't really help me out...

Thanks!
Each credit card company deals with situations like this a bit differently. A few years ago this was easier to do, nowadays, not so much. Usually you have to wait at least a few months to reapply for a card, but they are much tighter now.

I'll let someone else chime in on the specifics of the Marriott card, but my guess is that you would have to wait 24 months to get the bonus again.
lakpr
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by lakpr »

Bogleheads may not be the right forum for posing this question.

Try Reddit churning forum. Not sure if it is permissible to post links here but you can easily google "Reddit Churning" and pick the first link.

To my knowledge, yes you will have to cancel the card before reapplying and yes you do need to wait 2 years after canceling. I believe this card is also subject to 5/24 rule, meaning no more than 5 new trade lines within the past 24 months, from any issuer. Not credit cards, trade lines. So a line of credit to protect against overdrafts on your checking account, for example, if it reports to your credit reports, will count against the rule.
bta15
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by bta15 »

The Marriott card is issued by chase. The policy is as follows:

"This product is available to you if you do not have this card and have not received a new card member bonus for this card in the past 24 months."

I have done what you are asking with the Chase British Airways Visa (it has the same policy). The wait is two years since the initial sign up bonus posted.

You should be good but you have to close the original credit card before applying for the new one.

I would not call and ask these questions of the bank or hotel company. You are essentially gaming the system and they are not going to be overly inclined to help.
bta15
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by bta15 »

lakpr wrote:
To my knowledge, yes you will have to cancel the card before reapplying and yes you do need to wait 2 years after canceling. I believe this card is also subject to 5/24 rule, meaning no more than 5 new trade lines within the past 24 months, from any issuer.
The first part of this statement is incorrect, she will not have to wait 2 years.

The second part is correct, if you've applied for 5 or more cards from any card issuer in the last 24 months you will not be approved regardless of how long the card has been closed or when you last received the bonus.
nec
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by nec »

you can find your answer in flyertalk website...and much more...
Bfwolf
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by Bfwolf »

bta15 wrote:The Marriott card is issued by chase. The policy is as follows:

"This product is available to you if you do not have this card and have not received a new card member bonus for this card in the past 24 months."

I have done what you are asking with the Chase British Airways Visa (it has the same policy). The wait is two years since the initial sign up bonus posted.

You should be good but you have to close the original credit card before applying for the new one.

I would not call and ask these questions of the bank or hotel company. You are essentially gaming the system and they are not going to be overly inclined to help.
This is correct. But before you act on this information, I think you should ask yourself whether the Marriott card is really the one you want. 100K Marriott points is a good bonus, but if business class award flights interest you, you can do better.
lakpr
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by lakpr »

bta15 wrote:
lakpr wrote:
To my knowledge, yes you will have to cancel the card before reapplying and yes you do need to wait 2 years after canceling. I believe this card is also subject to 5/24 rule, meaning no more than 5 new trade lines within the past 24 months, from any issuer.
The first part of this statement is incorrect, she will not have to wait 2 years.

The second part is correct, if you've applied for 5 or more cards from any card issuer in the last 24 months you will not be approved regardless of how long the card has been closed or when you last received the bonus.
Thanks and glad to be corrected. I read Chase policy which you posted separately as meaning to say "you have not had the card in the past 24 months" AND "you have not received new member bonus in the past 24 months". You seem to interpret, and presumably have data to back it up (I confess I don't have data to backup my assertion) that this is read more correctly as "you have not had the card currently" AND "you have not received the new member bonus in the past 24 months".

I also want to add here that you have made a slight mistake in the second part; one should have applied *and received* 5 or more cards in the past 24 months. If the application is declined, (the hard inquiry is showing but no corresponding trade line) the inquiry itself is not going to torpedo a new card application with Chase. Chase is not inquiry sensitive as long as income, credit history, scores and the number of trade lines in the past 24 months meet their standards (for that particular card).
dsmil
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by dsmil »

I believe that normally with Chase, you can basically get the bonus every 24 months, assuming that you've already cancelled the card. So if you got the bonus 4 years ago, you could cancel the card, and then immediately sign up and get the bonus again.
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barberakb
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by barberakb »

bta15 wrote:
lakpr wrote:
To my knowledge, yes you will have to cancel the card before reapplying and yes you do need to wait 2 years after canceling. I believe this card is also subject to 5/24 rule, meaning no more than 5 new trade lines within the past 24 months, from any issuer.
The first part of this statement is incorrect, she will not have to wait 2 years.

The second part is correct, if you've applied for 5 or more cards from any card issuer in the last 24 months you will not be approved regardless of how long the card has been closed or when you last received the bonus.
How dare you assume my gender! :annoyed

Haha, jk.

Thanks for all the info. I prefer hotel cards since I rarely fly.

Kind of weird since I am in the Air Force...

And I am a dude. Barber is my last name. AKB are my initials
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prudent
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by prudent »

lakpr wrote:I believe this card is also subject to 5/24 rule, meaning no more than 5 new trade lines within the past 24 months, from any issuer. Not credit cards, trade lines. So a line of credit to protect against overdrafts on your checking account, for example, if it reports to your credit reports, will count against the rule.
There is an exhaustive review of Chase's 5/24 policy here: http://www.doctorofcredit.com/chase-524 ... need-know/
sharpjm
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by sharpjm »

One thing that many in this thread have failed to mention is that if you close a Chase card and apply for a new identical card within 30 days, they will simply re-open the closed card and no bonus will be tied to it. OP, you need to close the card, wait at least 30 days and then you can apply for and receive the bonus again as long as you are not in violation of Chase's 5/24 rule.

/r/churning has a weekly "newbie" question thread if you have more questions like this it is the best place to ask IMO.

Another great resource is Doctor of Credit as prudent linked above.

Cheers
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midareff
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by midareff »

I think much of this has to do with personal preferences and lifestyle. We are retired and traveling 6 or more times a year so airline cards with enough miles at signup to get a couple of one ways were worth it to us. So far in a typical year we will be on United, AA and Delta once or more. The $95 a year "membership" fee is a wash to a checked bag round trip for each free. The priority boarding is a big plus IMHO. Other than that we are cruise heavy so hotel points don't mean anything and for an extra advance night or such, and the cruise, I'd much rather put on a 2% cash back card.
Loik098
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by Loik098 »

bta15 wrote:The second part is correct, if you've applied for 5 or more cards from any card issuer in the last 24 months you will not be approved regardless of how long the card has been closed or when you last received the bonus.
Not necessarily. There are several websites that suggest you can circumvent 5/24 if you have "Selected for You" offers on the home page of your Chase account, just below where the Ultimate Rewards balance is listed. Occasionally, there will be an offer for a Chase cc there even for users who have exceeded 5/24.
bta15
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Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

Post by bta15 »

Loik098 wrote:
bta15 wrote:The second part is correct, if you've applied for 5 or more cards from any card issuer in the last 24 months you will not be approved regardless of how long the card has been closed or when you last received the bonus.
Not necessarily. There are several websites that suggest you can circumvent 5/24 if you have "Selected for You" offers on the home page of your Chase account, just below where the Ultimate Rewards balance is listed. Occasionally, there will be an offer for a Chase cc there even for users who have exceeded 5/24.
I'd never heard of that. I googled it and saw that because I have a chase business card I see a different style homepage than people with only personal cards. And those "selected for you" offers will not show up on my homepage because of that business card.
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