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.
Sure thing! Let me dive into the concepts mentioned in the article about the Chase 5/24 rule.
Chase 5/24 Rule: A Deeper Look
The Chase 5/24 rule is an unofficial policy impacting Chase credit card approvals based on recent credit card openings. Here's a breakdown:
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5/24 Rule Basics: The rule stipulates that if you've opened five or more personal credit card accounts from any issuer within the last 24 months, Chase won’t approve you for their cards.
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Impact on Approval Odds: The number of cards opened in the previous two years directly affects your approval likelihood with Chase, even with an excellent credit score.
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Strategic Management: To navigate the rule, you must strategically time and select which cards to open, considering Chase’s restrictions.
Working of the 5/24 Rule:
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Example Scenario: If, within the past 24 months, you've opened six cards—two from American Express, one from Bank of America, one from Discover, one from Chase, and one from Citi—Chase would likely reject your application due to exceeding the 5/24 limit.
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Expiration of Count: Cards opened 23 months ago cease to count after another month, adjusting your 5/24 count. Once below the limit (e.g., 4/24), you become eligible for Chase cards again.
Exceptions to 5/24:
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Excluded Accounts: Certain credit account types—like student loans, auto loans, and mortgages—don’t count toward the 5/24 limit.
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Authorized User Exclusion: Being an authorized user on someone else’s card can exceed the 5/24 limit. You can request Chase to exclude these accounts from your count by calling their reconsideration line.
Why the Rule Exists:
- Risk Management: Chase introduced this policy around 2015 to mitigate risk, encourage responsible credit usage, and deter individuals from exploiting rewards programs.
Avoiding and Checking 5/24 Status:
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Strategic Applications: To bypass the rule, strategic planning of when and which cards to apply for is crucial.
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Checking Status: Utilize tools like the Experian app to track and understand your current 5/24 status, counting approved cards within the past 24 months.
Cards Subject to 5/24 Rule:
- Coverage: The rule generally applies to both personal and business credit cards issued by Chase, including cobranded cards.
FAQ Highlights:
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Eligibility Impact: The 5/24 rule significantly affects Chase credit card applications; opening five or more cards within 24 months leads to rejection.
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Other Issuers' Rules: While Chase has this rule, other issuers like American Express and Citi have their own application regulations.
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Authorized User Impact: Being an authorized user on another's account affects your 5/24 count, but you can request exclusion from Chase.
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Bypass Scenarios: There are exceptions to the rule, but they're rare. Additionally, Chase's targeted offers or business cards might present opportunities.
Understanding and navigating the Chase 5/24 rule is pivotal for anyone interested in obtaining Chase credit cards while managing their credit applications strategically.
