April 20, 2024
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Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

Credit Card Companies Increasingly Regulating the Industry

Recently, several prominent credit cards have seen a makeover in terms of regulation and application restrictions that are leaving longtime customers high and dry. Both Chase and CitiBank have introduced new guidelines regarding eligibility for new cards, specifically irking travel gurus who utilize their cards and points to maximize on rewards and travel.

Chase is one of the most accessible and well-known banks in the US—it should come as no surprise that with great cards such as Chase Sapphire Preferred, it has become fairly common for people to apply for several of their rewards cards simultaneously for ultimate value. To the dismay of Chase loyalists everywhere, the 5/24 rule has taken over. What this means is that “Chase will not issue you a new Chase credit card if you have opened five or more credit cards over the past 24 months.” To add insult to injury, this even includes any card in which the applicant is considered an authorized user. Theoretically, a person with outstanding credit and years of customer loyalty would be duly denied without reprieve. Ouch.

On August 28, CitiBank updated their rules regarding rewards, effectively limiting what customers will be able to receive in terms of “sign-up bonuses” for the future. They now only allow their customers to receive a sign-up bonus every 24 months per “type” of card.

What does this mean? That you won’t be able to earn a Citi ThankYou credit card sign-up bonus if you opened or closed any Citi ThankYou cards within the past 24 months. In addition, this rule also applies to Citi’s other co-branded cards, such as Citi AAdvantage cards and Citi Hilton cards.

To clarify—let’s look at the evolution of the coveted Citi Prestige card “Bonus Rules.”

Old rules: Bonus ThankYou Points not available if you have had a Citi Prestige card opened or closed in the past 24 months.

Now the following new terms are listed: Bonus ThankYou points are not available if you have had ThankYou Preferred, ThankYou Premier or Citi Prestige card opened or closed in the past 24 months.

What this means for the mile-churning and savvy 21st-century credit card user is that keeping up with the CC companies’ rules and regulations is a constantly changing task, which can make a big difference on your wallet. In order to stay on top of all updates and amendments, tune in to our follow-up blog where we’ll give you tips on which cards are still available and worth signing up for as well as potential loopholes around these new rules. Remember: Don’t let your points/miles sit idle, as they might be devalued or altered when it comes to value and reward!

Get PEYD is the leading credit card reward and travel agency. For more information, visit www.getPEYD.com.

(Sponsored by Get Peyd)

 

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