The Chase 5/24 rule is a crucial consideration for those who love earning rewards with their credit cards, particularly for travelers looking to maximize their rewards with Chase cards. This unofficial rule, implemented by Chase, states that you cannot be approved for any Chase credit cards if you’ve opened five or more personal credit cards (regardless of the issuer) within the past 24 months. As a result, knowing the ins and outs of this rule can help you strategize credit card applications and avoid being unexpectedly denied approval.
Understanding how the Chase 5/24 rule works and its impact on your credit card applications is the first step to maximizing your rewards. The details surrounding which cards are affected, how business credit cards come into play, and checking your 5/24 status are all essential to navigating this policy. So, let’s dive into what you need to know about the Chase 5/24 rule and how to make it work for you as a savvy credit card user.
What is the Chase 5/24 Rule?
The Chase 5/24 rule is an unofficial policy that affects your ability to get approved for Chase credit cards. To be approved for a Chase credit card, you cannot have opened five or more personal credit cards across all banks in the last 24 months. This means you actually need to be under 5/24 to be approved. The rule only applies to getting approved for cards issued by Chase, but your 5/24 count includes credit cards from all banks.
It’s important to note that the 5/24 rule applies to any credit card from any issuer, not just Chase. It considers personal and business credit cards that appear on your credit report. Most business cards, including any Chase business cards, will not count towards your 5/24 count. However, other bank business cards do count, such as some Discover, TD Bank, and Capital One business cards (more on this later).
The rule is not officially published by Chase but is based on reports from applicants and experts who have tested it over time. Here are some examples of how the rule works:
- If you have opened four credit cards in the last 24 months, you can apply for one more Chase card before reaching the limit.
- If you have opened five or more credit cards in the last 24 months, you will likely be denied for any Chase card, even if you have excellent credit and income.
- If you have opened three credit cards in the last 24 months, but one is a business card that does not appear on your personal credit report, you can still apply for two more Chase cards.
By understanding the Chase 5/24 rule, you can better plan your credit card strategy and improve your chances of getting approved for Chase cards. Remember to keep track of your credit card applications and openings to ensure you stay within the limits set by the 5/24 rule.
What Chase Credit Cards are Subject to the 5/24 Rule?
The Chase 5/24 rule affects many credit cards, including some popular ones that you might be interested in. Here are some of the most common Chase credit cards subject to the 5/24 rule, categorized into personal and small business credit cards.
|Chase Personal Cards Impacted by 5/24||Chase Business Credit Cards Impacted by 5/24|
|Aer Lingus Visa Signature® Card||IHG One Rewards Premier Business Credit Card|
|Amazon Rewards Visa Signature Card||Ink Business Cash® Credit Card|
|British Airways Visa Signature® Card||Ink Business Preferred® Credit Card|
|Chase Freedom Flex℠||Ink Business Unlimited® Credit Card|
|Chase Freedom Unlimited®||Southwest® Rapid Rewards® Performance Business Credit Card|
|Chase Sapphire Preferred® Card||Southwest® Rapid Rewards® Premier Business Credit Card|
|Chase Sapphire Reserve®||United℠ Business Card|
|Disney® Premier Visa® Card||United Club℠ Business Card|
|Disney® Visa® Card||World of Hyatt Business Credit Card|
|Iberia Visa Signature® Card|
|IHG One Rewards Premier Credit Card|
|IHG One Rewards Traveler Credit Card|
|Marriott Bonvoy Bold® Credit Card|
|Marriott Bonvoy Boundless® Credit Card|
|Southwest Rapid Rewards® Plus Credit Card|
|Southwest Rapid Rewards® Premier Credit Card|
|Southwest Rapid Rewards® Priority Credit Card|
|United Club℠ Infinite Card|
|United Gateway℠ Card|
|United Quest℠ Card|
|United℠ Explorer Card|
|The World of Hyatt Credit Card|
Are Business Credit Cards Impacted by Chase 5/24?
Chase business credit cards are indeed subject to the 5/24 rule for approval. This means that in order to get approved for a Chase business card like the Ink Business Unlimited® Credit Card or the World of Hyatt Business Credit Card, you need to be under 5/24.
The twist is that once you are approved for a Chase business credit card, it does not add to your 5/24 count. This is advantageous as it lets you prioritize signing up for Chase business cards first.
It’s important to note that while most business credit cards DO NOT add to your 5/24 status, there are some exceptions. Business card approvals with American Express, Chase, Citi, Bank of America, and others DO NOT count toward your 5/24 total.
However, some specific business cards will contribute to your 5/24 status, including:
- Business cards from Discover and TD Bank
- Most Capital One business cards, except the Capital One Spark Cash Plus
What Types of Accounts Add to Your 5/24 Status?
In understanding the 5/24 rule applied by Chase, it’s essential to know which accounts are counted towards your 5/24 status and which are not. Here’s a brief list of accounts that contribute to your 5/24 standing:
- All personal credit cards opened with any bank in the past 24 months, even if they are now closed.
- Specific business cards from Discover, TD Bank, and most Capital One small business cards (except the Capital One Spark Cash Plus).
- Retail or store cards that are part of a national payment system or even those specific to one store, as long as they appear on your credit report.
- Authorized user cards from another person’s personal credit card opened in the past 24 months. However, you can request Chase to not consider these by calling their reconsideration line.
On the other hand, the following do not count towards your 5/24 status:
- Denied credit card applications, as they do not appear on your credit report.
- Most small business cards, except those from specific issuers like Discover, TD Bank, and certain Capital One cards.
- Auto loans, student loans, and mortgages.
How Do I Check My 5/24 Status?
One of the easiest ways to check your 5/24 status is to sign up for the free credit report service at Experian. Make sure you don’t accidentally sign up for a paid service. After successfully signing up for this free credit report, you can access your information from all major credit bureaus, such as Experian, Equifax, and TransUnion. Another option is to request your free annual credit report from AnnualCreditReport.com, a website authorized by federal law to provide free credit reports from three major credit reporting companies.
Once you have access to your credit report, you can count the number of new credit accounts opened within the last 24 months. To do this, count back 24 months from the day you check your report. For example, suppose you check your report on September 1, 2023. In that case, you need to count the number of credit card accounts opened between September 1, 2021, and September 1, 2023.
Remember that your 5/24 count includes credit cards from all banks, not just Chase. Therefore, it’s crucial to tally the total number of accounts across all issuers when calculating your 5/24 status.
Another option for checking your 5/24 status is creating a free Credit Karma account. This user-friendly platform helps monitor your credit score and credit report information. It also displays the number of new credit accounts opened within the last two years, which can help you quickly determine your 5/24 status.
By staying on top of your 5/24 status, you can make informed decisions regarding new credit card applications and better manage your financial health. Always keep track of your recent credit applications and monitor your credit report regularly to ensure you don’t cross the 5/24 threshold set by Chase.
Are There Any Ways to Get Around the Chase 5/24 Rule?
There were various methods for bypassing the Chase 5/24 rule in the past, but most have become outdated and no longer work. That said, a few potential workarounds exist. Still, they aren’t guaranteed and often depend on your credit profile, income, relationship with Chase, and timing. Here are some common methods reported to have worked for some applicants.
- Applying for a preapproved or targeted “Just for you” offer from Chase: Sometimes, Chase may extend preapproved promotions or targeted offers specifically for you, which could potentially bypass the 5/24 rule. This might happen if you have a good relationship with Chase and a strong credit profile.
- Applying in-branch with a Chase banker: Another possible way to bypass the 5/24 rule is by applying for a card in person at a Chase branch. You could ask the banker to guide you and review your application. While this method isn’t foolproof, it has worked for some applicants.
- Calling the reconsideration line after a denial: If your application gets denied due to the 5/24 rule, you can try calling the Chase reconsideration line. Explain your situation and express how much you value your relationship with Chase. This approach may work better for those with a solid credit history and a strong connection with the bank.
- Requesting a product change from an existing Chase card: If you currently hold a Chase credit card, consider requesting a product change to another card that interests you. This method may not trigger the 5/24 rule, as it doesn’t involve opening a new account. However, it’s essential to note that not all cards are eligible for product changes. Chase may still decline your request based on other factors.
Remember, while trying these strategies might improve your chances of circumventing the Chase 5/24 rule, they are only guaranteed to work after a period of time. It’s crucial to stay informed about your credit status and maintain sound financial habits to increase your likelihood of approval for future Chase credit cards.
Understanding and planning for the Chase 5/24 rule is crucial to maximize your rewards with Chase credit cards.
To make the most of this rule and enhance your travel, rewards, and bonus points, it’s essential to manage your 5/24 status effectively. Here are some tips to help you navigate this limitation:
- Prioritize Chase cards: If you are under 5/24 and want to get the most valuable cards first, focus on applying for Chase cards over other issuers, such as Capital One.
- Space out applications: Only apply for a few cards in a short period to prevent red flags or denials. Be mindful of your applications and keep them spaced out to stay within the limits.
- Track your credit report: Keep track of your 5/24 status by monitoring your credit report regularly. You can use a free service or maintain a spreadsheet to stay up-to-date on your opened accounts.
- Consider business cards: If you have a legitimate business or side hustle, look into applying for business cards that do not count toward your 5/24 status. This can help you maximize your rewards without hitting the limit on personal cards.
- Patience and flexibility: Be patient and flexible with your card applications. If you are over 5/24 or close to it, wait for the right opportunity to apply for a Chase card to get the best sign-up bonuses and rewards.
By following these tips and maintaining a proactive approach to your credit card applications, you can effectively navigate the Chase 5/24 rule and maximize your rewards and bonuses from travel and credit cards.
Frequently Asked Questions
Do Chase business cards count toward my 5/24 score?
No, most Chase business cards do not count toward your 5/24 score. However, there are exceptions with business cards from other issuers. For example, business cards from Discover, TD Bank, and most Capital One small business cards (except the Capital One Spark Cash Plus) count toward your 5/24 standing.
Do authorized users count toward the Chase 5/24 Rule?
Yes, being an authorized user on someone else’s card does count toward your 5/24 status if the account was opened in the past 24 months. However, you can call the Chase reconsideration line and ask for these accounts to not be considered when evaluating your 5/24 status.
If I close a credit card I was approved for in the last 24 months, can I bypass 5/24?
No, closing a credit card opened in the previous 24 months will not remove it from counting toward your 5/24 status. The rule considers all cards opened in that period, regardless of whether they are open or closed.
Can I apply for two Chase cards on the same day when I’m 4/24 and get approved for both?
It is possible but risky. While you may apply for two cards in a day when you are 4/24, there is no guarantee of approval for both, especially considering the 5/24 rule. If the first application pushes you to 5/24, the second one could be automatically denied due to your new 5/24 status.
I am at or over 5/24. Can I get a card from another bank?
Yes, the 5/24 rule applies explicitly to Chase credit card applications. Other banks may have different criteria for approval, so being at or over 5/24 would not necessarily disqualify you from obtaining a card with another issuer. However, having too many new accounts in a short period could also impact your creditworthiness in the eyes of other lenders.