Breaking Points: Credit Card News

Chase appears to have reversed course and is once again allowing product changes to the Freedom Flex. There are now multiple data points from Freedom Unlimited and original Freedom cardholders successfully switching to the Flex, despite those cards running on Visa while the Freedom Flex is a Mastercard. If you have a Sapphire card and want to downgrade to the Flex, you may first need to product change to the original Freedom or Freedom Unlimited, then request another change to the Flex. The Freedom Flex earns 5X Ultimate Rewards on rotating quarterly categories, and while those rewards are technically issued as cash back, you can combine them with points from an eligible Chase card that transfers to airline and hotel partners.

Bilt has updated its terms to allow Bilt Blue, Obsidian, and Palladium cardholders to upgrade or downgrade between cards. Having the flexibility to product change is always good news. Upgrades are already rolling out in beta to select cardholders, and the terms also indicate that Bilt may offer targeted bonuses for upgrading. Unfortunately, the details are very much on brand for Bilt, meaning unclear and convoluted. The new terms include complicated language about potentially clawing back welcome bonuses, Bilt Cash, points, elite status, and annual credits when downgrading within 30 days of an annual fee posting. It's not clear whether this language applies only when you initially open or upgrade a card, or whether Bilt could also claw back benefits when you downgrade within 30 days after the annual fee posts on your second year of holding the card. Those are very different policies, and the latter would be unprecedented in the points and miles world. The terms aren't clear enough for us to confidently say how this will work or what we'd recommend doing. For now, the important takeaway is that Bilt is adding the ability to upgrade and downgrade its cards, but we'd wait for clarification from Bilt and real-world data points before making any decisions based on the new rules.

There are growing reports that Chase may have tightened its 5/24 rule for business credit card applications, as multiple customer service reps have told applicants they must now be under 3/24 instead. We are not ready to call this a confirmed change yet, but there are now enough independent data points that it's worth having on your radar, especially if you planned to open a Chase business card in the near future. Multiple applicants at 3/24 or 4/24 have recently been denied for Chase business cards, with Chase reconsideration representatives specifically telling them that a new 3/24 restriction applies. Most reports so far involve people applying as sole proprietors, and several Chase representatives have reportedly cited mid-September as the start of the new rule. There are also conflicting data points, including applicants at 3/24 or 4/24 who have still been approved, but that doesn't necessarily disprove anything since Chase has been increasingly inconsistent with approvals over the last 9-12 months after tightening restrictions on many of its cards. We don't yet know exactly how the rule works, who it applies to, or how consistently it will be enforced. There is also no indication that Chase has changed the 5/24 rule for personal cards. While we don't recommend changing your entire credit card strategy based on this yet, if you're at 3/24 or 4/24 and planning to apply for a Chase business card as a sole proprietor, you should absolutely be aware of it. Between this and the recent Citi Strata updates, these are both good reminders of the importance of staying flexible in this hobby. We'll update this as more data points emerge

Citi has changed the eligibility requirements for signup bonuses on its Strata cards, and it's not great. Citi has three Strata cards: the Strata, Strata Premier, and Strata Elite. All three previously had 48-month language, meaning you could earn the bonus on each card once every 48 months. Citi recently removed that language and replaced it with lifetime-style restrictions similar to Amex and the Chase Sapphire and Ink cards. The new terms say, "New account bonus offer is not available if you currently have or previously had a Citi Strata Elite® account. You also may not be eligible for the new account bonus offer based on a number of factors, such as your history of opening, closing and using credit cards." We'll have to wait and see what "lifetime" means in Citi's case. With Amex, data points suggest lifetime is typically around 7-10 years. Chase added similar restrictions to its Sapphire and Ink cards within the last year, but data points there are still mixed, so we don't yet have a firm handle on how long its version of "lifetime" lasts.

The IHG One Rewards Premier Card has a welcome offer for five 40,000-point Free Night Awards after spending $4,000 in the first three months, which could provide up to 200,000 points worth of hotel nights. You can top off each 40K Free Night Award with your own points for a more expensive stay. The catch is that the five Free Night Awards expire after 12 months, making them much less flexible than points. Go here to find this offer. This is an alternative to the public offer of 140,000 IHG points after spending $3,000 in three months. Which offer is better depends entirely on your travel plans over the next year. If you know you'll use all five certificates before they expire, this offer provides the equivalent of 60,000 more points. Keep in mind that you cannot use IHG's fourth-night-free benefit when redeeming Free Night Awards, but you can when booking entirely with points. The 140,000-point offer is more flexible for anyone who isn't certain they'll use all five Free Night Awards.