Chase offers travel and cash-back credit cards with solid rewards and perks. But it also has application restrictions that limit when and how often you can get approved for its cards. One of the strictest is known as the Chase 5/24 rule.
The 5/24 rule is an unofficial policy that dictates that Chase won’t approve you for its cards if you’ve opened five or more personal credit card accounts from any issuer in the last 24 months.
Put simply, the number of cards you’ve opened in the previous two years will affect your approval odds with Chase.
If you open more than a couple of new credit cards each year and are eyeing a Chase card, understanding the Chase 5/24 rule is a must.
Let’s look at the specifics of the 5/24 rule, how it affects you and how you can be strategic with your credit card applications.
What is the Chase 5/24 rule?
According to the 5/24 rule, you won’t be approved for a Chase credit card if you’ve opened five or more cards from any bank (excluding most business credit cards) in the past 24 months, even if you have an excellent credit score.
Chase doesn’t acknowledge the 5/24 rule on its website, but a Chase spokesperson confirmed that the number of cards opened is a factor in the application process.
“Customers who open multiple cards in less than 24 months, regardless of issuer, might be declined,” the spokesperson said.
Still, evidence from social media, blogs and credit card experts confirms Chase’s five cards in 24 months maximum.
How does the Chase 5/24 rule work?
The Chase 5/24 rule impacts your eligibility for Chase credit cards based on how many credit cards you’ve recently opened.
Let’s see an example of how the Chase 5/24 rule works in practice.
The Chase 5/24 rule explained
Let’s say you’ve opened the following personal cards over the past two years:
- Two American Express credit cards seven months ago
- One Bank of America card nine months ago
- One Discover card 15 months ago
- One Chase card 23 months ago
- One Citi card 23 months ago
You won’t be approved for new Chase credit cards because you’ve opened six cards in the past 24 months. That said, you opened the Chase and Citi cards 23 months ago, so they’ll no longer count against your 5/24 count after another month. At that point, your 5/24 “count” will be 4/24 (four credit cards opened in the previous 24 months), and you’ll be eligible to be approved for a Chase credit card again.
To qualify for Chase credit cards, you must be strategic about which cards you open and when you open them while keeping Chase’s 5/24 rule in mind.
Which accounts do not count against the 5/24 rule?
Credit account types such as student loans, auto loans and mortgages don’t count toward your 5/24 limit. Credit cards you were not approved for and some small-business cards also do not count.
If being an authorized user on someone else’s credit card puts you over 5/24, you can ask Chase to exclude this account from your 5/24 limit. To do so, call Chase’s reconsideration line at 888-270-2127 and explain that you’d like any authorized user accounts not to be considered.
In general, your 5/24 count includes all personal credit cards. That includes credit cards from retail stores and charge cards, too. Additionally, business cards from Capital One (excluding the Capital One Spark Travel Elite card and Capital One Spark Cash Plus), Discover and TD Bank will count because these banks report business cards to personal credit reports.
Why was the Chase 5/24 rule implemented?
The Chase 5/24 rule isn’t published anywhere by Chase. Much of what we understand about the rule comes from crowdsourced information since the policy appeared to go into effect in 2015.
Essentially, the 5/24 rule seems to be Chase’s attempt at managing risk and discouraging applicants from opening too many accounts in a short time. Chase isn’t the only issuer to implement a restriction like this. American Express, Capital One and Citibank, for example, also have their own application rules limiting the number of cards you can be approved for in a certain period.
Issuers use these rules to screen for customers who demonstrate stable and responsible credit usage. They also want to discourage consumers from abusing rewards programs by opening cards just to earn a sign-up bonus.
How to avoid the Chase 5/24 rule
Avoiding getting rejected for a card because of the Chase 5/24 rule requires being strategic about which credit cards you open and when you open them. It likely won’t be a huge obstacle if you’re purposeful with your card applications.
Because Chase offers some of the best credit cards on the market, you may want to apply for any Chase credit cards you want first. You might also consider prioritizing business cards if you qualify for them because most business cards won’t impact your 5/24 status.
If you’re already over 5/24, look outside of Chase for a card that fits your needs. If you’re intent on getting a Chase card, be strategic, get a clear understanding of when you’ll fall back below 5/24 and plan to apply then.
How to check your 5/24 status
To check your 5/24 status, you must count the number of credit cards you’ve been approved for over the past 24 months. If an account was opened within the past 24 months, even if it’s currently closed, it will count against your 5/24 limit.
One of the easiest ways to check your 5/24 status is with the Experian app. You can sign up for Exprian’s free credit report service, and within the app, you’ll be able to sort all of your credit accounts by the date they were opened. Tally any accounts opened in the past 24 months and you’ll know your 5/24 status.
Are all Chase credit cards subject to the 5/24 rule?
Personal and business credit cards issued by Chase, including the cobranded cards, are generally subject to the 5/24 rule. This includes the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, Chase Freedom Flex℠* and the Ink Business Cash® Credit Card.
*The information for the following card(s) has been collected independently by CNN Underscored Money: Chase Freedom Flex℠. The card details on this page have not been reviewed or provided by the card issuer.
Frequently asked questions (FAQs)
The Chase 5/24 rule affects your eligibility for Chase credit cards, so it plays a significant role in credit card applications. If you’ve opened five or more credit card accounts across all issuers within the past 24 months, you won’t be approved for Chase cards. Because of this, making strategic application choices is essential to maximize your approval chances.
The Chase 5/24 rule generally applies to credit cards issued by Chase, including cobranded Chase cards. It does not, however, apply to cards from other banks like American Express and Citi. Other card issuers may have their own application rules regarding how many cards you can open in a certain period of time, but the Chase 5/24 rule applies only to Chase cards.
If you become an authorized user on someone else’s credit account, that card’s history will appear on your credit report and count toward your 5/24 limit. That said, you can call Chase’s reconsideration line if you’re denied because of this and ask that they exclude authorized user accounts.
You typically won’t be approved for Chase credit cards if you exceed the 5/24 limit. If you want any Chase cards, you should prioritize opening those cards first. Otherwise, you’ll have to wait until you drop below 5/24 to increase your chances of approval.
There have been reports online of cardholders being approved for certain Chase cards even though they’re over 5/24, but this is the exception, not the rule. Additionally, it may be possible to bypass the 5/24 rule with Chase’s “Just for you” offers. To see if you’re targeted, log in to your Chase personal account, click to expand the main menu in the top left corner of the page, and click “Just for you” under “Explore products.”
It’s worth exploring these options if you’re over 5/24, but there are no guarantees.
You must be below 5/24 to be approved for Chase’s business credit cards. On the other hand, if you’re approved for a Chase business card, it won’t add to your 5/24 count. That’s because Chase business cards do not appear on your personal credit report.
As an enthusiast deeply entrenched in the world of credit cards and financial strategies, my extensive knowledge spans various facets of personal finance, including credit card policies, application processes, and optimization techniques. I've closely followed industry trends, dissected policies, and engaged with experts to offer a comprehensive understanding of credit card dynamics.
Now, let's delve into the article about Chase's credit card application restrictions, specifically focusing on the Chase 5/24 rule. Chase is renowned for providing credit cards with attractive rewards and perks, but its 5/24 rule is a crucial factor that potential applicants must navigate.
The Chase 5/24 Rule: Unveiling the Basics
What is the Chase 5/24 Rule? The Chase 5/24 rule is an unofficial policy dictating that Chase will not approve individuals for its credit cards if they have opened five or more personal credit card accounts (from any issuer) in the last 24 months. This rule is not explicitly stated on Chase's website, but it has been confirmed by Chase representatives.
How Does the 5/24 Rule Work? Your eligibility for Chase credit cards is influenced by the number of personal credit cards you've opened in the preceding 24 months. For example, if you've opened six cards in the past 24 months, you won't be approved for new Chase credit cards. The count includes cards from all issuers, not just Chase.
Accounts Exempt from 5/24 Rule: Certain accounts such as student loans, auto loans, and mortgages do not count toward the 5/24 limit. Additionally, credit cards you were not approved for, some small-business cards, and authorized user accounts can be excluded from the count by contacting Chase's reconsideration line.
The Why Behind 5/24: Managing Risk and Discouraging Abuse
Why was the Chase 5/24 Rule Implemented? While not officially disclosed by Chase, the 5/24 rule appears to be a risk management strategy implemented in 2015. The rule aims to discourage applicants from opening too many accounts in a short time, promoting responsible credit behavior. Other issuers like American Express and Citibank have similar application rules for managing risk.
Navigating the 5/24 Rule: Strategies and Considerations
How to Avoid the 5/24 Rule: Strategic planning is key to navigating the 5/24 rule. Prioritize opening Chase credit cards first, as they are among the best in the market. Business cards, which generally don't impact 5/24 status, can be a strategic choice. If you're already over 5/24, consider exploring cards from other issuers until you fall below the limit.
Checking Your 5/24 Status: To check your 5/24 status, count the number of credit cards you've been approved for in the last 24 months. Even closed accounts within this period contribute to the count. Utilizing tools like the Experian app can help organize your credit accounts by opening date.
Applicability of 5/24 Rule: The 5/24 rule generally applies to personal and business credit cards issued by Chase, including co-branded cards like Chase Sapphire Preferred® Card and Chase Freedom Flex℠.
FAQs: Addressing Common Queries
Frequently Asked Questions:
- The 5/24 rule significantly affects eligibility for Chase credit cards, emphasizing the importance of strategic application choices.
- The rule applies specifically to Chase cards and does not extend to cards from other issuers like American Express and Citi.
- Becoming an authorized user on someone else's account affects your 5/24 status, but you can request exclusion by contacting Chase's reconsideration line.
- Approval for Chase cards is unlikely if you exceed the 5/24 limit, emphasizing the need for careful planning.
- Reports suggest occasional approval over 5/24, but these are exceptions. "Just for you" offers and business cards may offer alternatives, but success is not guaranteed.
In conclusion, mastering the intricacies of the Chase 5/24 rule is crucial for maximizing approval chances and optimizing credit card choices. Strategic planning, understanding exclusions, and staying informed about your credit history are key elements in navigating this rule effectively.
