Tag Archive Citibank

What is the Chase 5/24 Rule?

Some people use credit cards strictly for convenience and making everyday purchases. Other people use a multiple credit card strategy to maximize rewards and squeeze every drop of earning power out of sign up bonus offers. If that describes you, there’s no shame. However, you should know that your moves haven’t gone unnoticed by the big banks. At least one of the card issuers — Chase — has set a limit on your ability to put some well-oiled, points-earning machinery in place. This speed bump on the road to rewards domination is the Chase 5/24 rule.

What is the Chase 5/24 rule?

First off, it’s important to note what the Chase 5/24 is not. It’s not actually a “rule.” That is, you won’t find it written down anywhere in Chase’s official documentation.

Instead, it’s a threshold you need to be under in order to be approved for a new Chase credit card. When the card you’re applying for is subject to the 5/24 rule — and all of Chase’s credit cards are — Chase will decline your credit card application if you’ve opened five or more new personal credit card accounts within the last 24 months. This determination has nothing to do with other factors that are used to approve people for credit, including credit score, income level and outstanding debt.

The 5/24 rule doesn’t just apply to cards you acquire from Chase, either. If you have opened five or more cards from any issuer in the last 24 months, your application for a new Chase credit card can be denied. For instance, suppose you acquire one Citibank, two Discover cards and two American Express cards in the last 24 months. You are subject to Chase’s 5/24 rule.

How the 5/24 rule may affect your card eligibility

When thinking about how many accounts you’ve opened in the past five months, it helps to better understand Chase’s definition of an account. Unfortunately, the issuer has a broad stance on what counts, including even department store cards that are part of a national payment system and cards you are an authorized user on.

Once you’ve been denied, you have two options. First, you can wait until you are under the 5/24 threshold and reapply for a Chase card then. The other option is to try and get a different type of Chase card under the Chase Ultimate Rewards family of reward cards, something you are eligible to do if you’ve held your current card for at least a year. If you go that route, though, you aren’t going to be eligible for the new card’s sign up bonus — which, let’s face it, is one of the main draws.

It’s worth noting that Chase doesn’t like customers whom it perceives as blatantly trying to game the rewards system, which is a type of “bust-out fraud.” It will not hesitate to shut down all of your Chase accounts if it believes you are engaged in this type of activity. If you want to remain a Chase customer, it’s best not to appear too eager.

Which credit cards are impacted by the 5/24 rule?

All reward cards that are exclusive to Chase appear to be affected by the 5/24 rule. The list includes these heavy-hitters:

  • Chase Freedom®
  • Chase Slate®

Cobranded reward cards are also now subject to the 5/24 rule, including the following popular favorites:

  • AARP® Credit Card from Chase
  • Amazon Prime Rewards Visa Signature card
  • Disney® Visa® Card and Disney® Premier Visa® Card

Exceptions to the 5/24 rule

It used to be rather easy to get around the Chase 5/24 rule. Prospective cardholders could apply through banner offers or prequalified offers on the online tool. There were also a number of co-branded cards that weren’t subject to the rule.

Since late 2018, however, Chase has tightened up its application process, and most ways of getting around the rule are no longer viable. You may still be able to bypass the 5/24 rule by responding to a targeted mailer or going into a physical Chase bank branch and applying for a card there.

Keep in mind that the 5/24 rule applies to personal credit cards only. If you are a business owner, you may still be eligible for a business credit card.

How to check your 5/24 standing

An easy way to check your standing is to order a copy of your credit report and look at the dates listed for all of the recent accounts you’ve opened. This is the same information Chase relies on, so you are seeing the same thing the company looks at.

You won’t be below the 5/24 threshold until the first day of the 25th month after you opened the fifth account. If that date was August 12, 2019, for instance, you can’t apply for a new Chase card until September 1, 2021.

The bottom line

Chase doesn’t want you to have too much of a good thing, and if you violate its norms, the issuer won’t hesitate to close all your accounts. The Chase 5/24 rule doesn’t have to ruin your ability to use multiple cards to maximize your rewards, though. A good strategy is to apply for the most valuable Chase cards first (since it is the only issuer to have this threshold) and then flesh out your system with reward cards from other issuers.

Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view a list of partners, click here. Opinions expressed here are the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser’s page for terms & conditions.

The post What is the Chase 5/24 Rule? appeared first on The Simple Dollar.

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Here’s How Small Businesses Affected by Coronavirus Can Get Help

Private organizations and federal agencies are scrambling to provide economic relief to small businesses affected by the new coronavirus, COVID-19.

Small businesses across the nation are taking a beating due to federal guidelines on social distancing and local lockdown procedures to curb the spread of the virus. 

“This is an unprecedented situation, where – for good reason – the government has instructed major parts of the economy to close down so that we can win this fight against this virus,” Treasury Secretary Steve Mnuchin said in an interview with Fox Business.

For more information, view all of our coverage of the coronavirus outbreak, which we will be updating every day.

While such measures are intended to help the country in the long term, many businesses are feeling the pain now, especially in the restaurant and hospitality industries. 

Here’s how small businesses affected by the coronavirus can get assistance.

Banks and Credit-Card Programs

On March 9, the FDIC urged financial institutions to assist its customers who are dealing with the effects of the coronavirus. A slew of major banks and credit-card issuers announced steps they will take to support their customers. 

Many banks said they will help on a case-by-case basis and to call the service number on the back of the issued credit or debit card.

Chase, CitiBank and SunTrust were more specific, announcing several means of assistance such as waiving early withdrawal and monthly service fees, providing loan payment relief or helping businesses create contingency plans.

The Penny Hoarder compiled a list of banks that announced coronavirus-related assistance.

Emergency Government Assistance

Three major initiatives aim to provide economic relief to individuals and businesses.

Families First Coronavirus Response Act

On Wednesday, March 18, President Donald Trump signed into law the Families First Coronavirus Response Act. Though aimed broadly at household assistance, the new law changes much for employers with less than 500 employees. The act provides tax credits for businesses to expand family medical leave and to grant their workers at least 14 days of paid sick leave amid the outbreak.

Businesses with 50 employers or fewer may qualify for a waiver if they can prove these requirements will cause additional “financial hardship.”

“This [law] will provide significant relief to small businesses that cannot afford the employee costs associated with coronavirus. [It] provides a dollar for dollar reimbursement for coronavirus related sick leave costs,” Treasury Secretary Mnuchin announced.

For cash-strapped businesses, the U.S. Treasury will allow them to use IRS deposited funds to cover the costs of paid leave and, in some cases, administer cash advances, Mnuchin said.

Deferred Tax Payments, Extended Filing Deadline

Through executive action, President Trump deferred federal tax payments until July 15, 2020 – up to $1 million for non-corporate filers (including the self-employed) and up to $10 million for corporate taxpayers.

“This deferment allows those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties,” Mnuchin said.

According to the U.S. Treasury, the deferment will free up an estimated $300 billion.

On Friday, March 20, Mnuchin announced the filing deadline is also extended to July 15.

$1,000+ Direct Checks and Other Economic Stimulus (Proposal)

The White House proposed a $1 trillion stimulus package that would send all U.S. adults $1,000. Parents would receive an additional $500 for each child. For example, a family of four – two parents and two kids – would receive $3,000, Mnuchin elaborated in his Fox Business appearance.

Another check would follow six weeks after the first if the national emergency declaration is still in place. The cash is expected to spur economic activity.

An additional $300 billion would be earmarked for small businesses to encourage them to keep employees on the payroll and to offer business-loan forgiveness if needed.

Facebook Small Business Grants

A business owner stands at the doorway of her shop.

Facebook pumped $100 million into a newly unveiled fund for small businesses that are reeling from COVID-19. Small businesses from more than 30 different countries will be eligible to apply for grants or ad credits through the initiative, dubbed Facebook Small Business Grants Program.

The funds may be used for:

  • Workforce investments.
  • Rent.
  • Advertising.
  • Operational expenses.

The social media giant has not yet released details on how to qualify or apply but will share updates “in the coming weeks.”

In the meantime, business owners can utilize Facebook’s new Business Resource Hub, which offers tips and tools to keep workers and customers up-to-date during the outbreak.

SBA Disaster Loans

The first law in response to COVID-19, the Coronavirus Preparedness and Response Supplemental Appropriations Act, supplied $20 million to the Small Business Administration so the agency can administer low-interest SBA disaster loans to small businesses impacted by the coronavirus.

As of March 20, loans up to $2 million are available to small businesses and nonprofits in most states, though many areas are determined on a county-by-county basis. The SBA works with local administrations to establish which states are eligible for disaster assistance and updates the list of eligible locations frequently.

“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact,” the terms state.

The interest rates for disaster loans are 3.75% for businesses and 2.75% for nonprofits.

Qualifying organizations should apply online or reach out to the SBA for assistance at  1‐800‐659‐2955.

Other Local Resources

Small business funding is often coordinated at a local level, and community resources shouldn’t be overlooked.

  • Governors’ offices: Governors coordinate with the SBA to designate disaster areas. Their websites typically include updates and other resources for business owners. The National Governors Association has compiled a comprehensive list of contact information for every governor’s office in the nation.
  • Score: A nonprofit partner of the SBA, Score offers small business owners a plethora of free, local resources, including webinars, workshops and mentors. During the coronavirus outbreak, all mentoring sessions will be conducted over the phone or online.
  • Small Business Development Centers: With more than 1,000 centers in the U.S., the SBDC provides business owners with assistance at a local level and is an extension of the SBA. Centers help entrepreneurs and small businesses with a variety of resources and will likely coordinate the SBA disaster loan program locally.
  • U.S. Chambers of Commerce: The U.S. Chamber represents more than 3 million businesses and is the largest lobbying organization in the country. Throughout the coronavirus outbreak, the Chamber has kept updates on how it’s affecting small businesses and, on several occasions, called on the government to enact specific policies to aid business owners.

The post will be updated as more information and resources become available.

Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, entrepreneurship and unique ways to make money. Read his ​latest articles here, or say hi on Twitter @hardyjournalism.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Here’s How Banks Are Helping Those Affected by Coronavirus

The coronavirus pandemic is proving to be more than just a health threat. 

The precautions put in place will likely have far-reaching effects, including some major financial implications for the average citizen. 

Late payment fees, overdraft fees or penalties for early withdrawals can escalate a situation from bad to worse. Conversely, waiving fees and penalties can ease a hard situation.

On Monday, March 9, the FDIC released information for bankers and consumers addressing the need for financial institutions to assist customers who are dealing with the coronavirus. A number of banks have already stepped up to the plate.

Many banks are encouraging people to use their online and mobile banking options as a way of promoting social distancing. 

Make sure to protect yourself from scams, especially phishing scams. If you receive an email that appears to be from your bank, do not click the links or give out your personal information.  Go directly to the bank’s website or call the bank if you have questions or concerns.

Below is a list of banks who have shared what kind of assistance is available for customers affected by the coronavirus. We will update this list as more information is released. 

Capital One

Capital One’s website features a banner that links directly to their coronavirus assistance page.

The bank asks customers to use online and mobile banking to help with limiting the spread of the virus. Any customer in need of assistance is asked to contact the bank.

Chase

Chase Bank has a dedicated Coronavirus COVID-19 Readiness web page, which encourages the use of online and mobile banking. Customers who need help are asked to call the number on the back of their credit or debit card or on their monthly statements.

Citibank

Citibank is urging its customers to make use of their online and mobile banking options as a way to promote social distancing. 

It’s also implemented a temporary plan to help aid those who are impacted by the coronavirus that is currently in place for 30 days as of March 9:

  • Customers should contact the bank for help with obtaining waivers on monthly service fees and penalties for early CD withdrawals.
  • Small business customers should also contact the bank for help with waivers for monthly service fees and remote deposit capture fees, and penalties for early CD withdrawals.

The bank also offers its standard assistance programs, including collection forbearance, credit line increases and hardship programs for mortgage customers.

Keep an eye on the Citibank coronavirus information page for updates.

Fifth Third Bank

Fifth Third Bank has a dedicated coronavirus impact page. The bank has not released any specific information, but encourages customers who need assistance to contact them by calling 866-601-6391 from 8 a.m. to 7 p.m. ET Monday through Thursday, and Friday from 8 a.m to  p.m. ET.

PNC Bank

PNC Bank has a coronavirus update center where customers can go to find the latest information.

While it doesn’t get into specifics about what measures they are willing to take to help customers out, they do urge customers in need of assistance to call 1-888-762-2265, from 7 a.m.to 10 p.m. ET Monday through Friday, and 8 a.m. through 5 p.m. ET Saturday and Sunday.

SunTrust Bank

SunTrust has a dedicated coronavirus information page (as well as a help page for victims of the tornadoes in Tennessee). 

The bank is encouraging customers who are experiencing financial hardship to contact the bank for assistance.

US Bank

Like most banks, US Bank has a banner on their homepage to direct customers in need of help to their coronavirus page. Customers who need help with fees and penalties are asked to call 888-287-7817.

The bank is also making some temporary adjustments to their products, primarily loans. For more information, contact the bank.

Wells Fargo

Customers who are dealing with difficulties due to the coronavirus pandemic can contact Wells Fargo for assistance at 1-800-219-9739. You can find updated information on the Wells Fargo coronavirus response page

Tyler Omoth is a contributor to The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.