Everything You Need to Know About the 5/24 Rule with Chase

Written By: Jose Rodriguez
Edited By: Kellee Rodriguez
October 10, 2024 / GotCredit.com

If you’re in the world of credit cards or rewards programs, you’ve likely heard about the Chase 5/24 rule. This unofficial rule governs whether or not you can be approved for one of Chase’s highly sought-after credit cards. It’s crucial for anyone trying to maximize their rewards to understand this rule, as it can have a major impact on your credit strategy.

While Chase hasn’t officially published the 5/24 rule, it’s widely recognized through years of crowdsourced data from credit card users. Essentially, the 5/24 rule means that Chase will automatically deny you for certain credit cards if you’ve opened five or more credit cards with any bank in the last 24 months. Let’s break it down further.

What Is the 5/24 Rule?

In short, to be eligible for most Chase credit cards, you must not have opened five or more personal credit cards from any issuer in the past two years. The key point here is that your 5/24 status includes cards from any bank, not just Chase, and the rule applies to personal credit cards.

The significance of this rule is clear for anyone who wants to be strategic with their credit card applications. Because Chase’s cards, such as the Chase Sapphire Preferred® and the Freedom Flex® card, offer highly valuable rewards, especially in the travel space, being aware of your 5/24 status is essential for maximizing your benefits.

Are All Chase Cards Affected by 5/24?

Most, but not all, Chase cards are subject to the 5/24 rule. The rule is known to affect popular cards, including:

• Chase Freedom Flex®
• Chase Freedom Unlimited®
• Chase Sapphire Preferred®
• Chase Sapphire Reserve®
• Ink Business Cash® Credit Card
• Ink Business Preferred® Credit Card

Cobranded travel cards, such as those from Southwest Airlines, United Airlines, and hotel chains like Marriott and Hyatt, are also included in the rule. Even some retail and entertainment cards like the Disney® Premier Visa® Card and the Prime Visa fall under 5/24. However, there are a few exceptions, so it’s always good to do your research before applying.

How Can You Check Your 5/24 Status?

Tracking your 5/24 status isn’t hard. The simplest way is to use a free credit report service, like Experian. By reviewing your open credit accounts and sorting them by the date they were opened, you can see how many accounts you’ve opened in the past 24 months. Remember, Chase is only looking at whether an account was opened — it doesn’t matter if you’ve already closed it.

What Counts Toward 5/24?

Most personal credit cards opened in the last two years will count toward your 5/24 status. Additionally, business cards from banks like Discover, TD Bank, and some from Capital One also count. Another thing to be aware of is that if you’re an authorized user on someone else’s credit card, it may count toward your total, but there’s a workaround. You can call the Chase reconsideration line and ask them to exclude these accounts.

It’s also worth noting that card denials, loans (auto, student, or mortgage), and most business cards from other issuers do not count toward your 5/24 status.

Can You Bypass 5/24?

There are ways to work around 5/24, but they aren’t foolproof. Some customers have had success by receiving targeted offers from Chase, or by applying for Chase business cards, which generally don’t count against your 5/24 standing. However, these methods aren’t guaranteed and should only be used if you’ve done your research.

Best Practices for Managing 5/24

The best approach is to be strategic. If you’re planning to apply for Chase cards, prioritize them early in your credit journey, while you’re still under the 5/24 limit. Applying for too many cards too quickly can hurt your chances of being approved. Chase also has a separate rule where they won’t approve more than two new cards within 30 days, even if you’re under the 5/24 limit. Take it slow and spread out your applications, aiming to apply no more than every three to four months.

What The Credit Dude Thinks:

As Founder of GotCredit.com, I’ve seen firsthand how the 5/24 rule can either help or hinder your credit card strategy. If you’re just starting out on your credit-building journey, you need to think carefully about how you approach applying for new cards. Being strategic can save you from unnecessary denials and missed opportunities for rewards.

Chase’s rule might seem restrictive, but it's designed to protect both the card issuer and the customer. It helps ensure that people aren't taking on too many credit cards too quickly, which could lead to financial strain. For those of you focused on building personal or business credit, following this rule is just one of many steps to take toward your larger financial goals.

I encourage you to stay informed about your credit status, keep track of the cards you’ve opened, and plan your credit strategy with your goals in mind. Avoid rushing into applications — timing is everything when it comes to maximizing your rewards.

3 Key Takeaways for Consumers:

1. Track Your 5/24 Status Regularly: Before applying for any new card, check your 5/24 status using your credit report. Being mindful of your recent credit card openings will help you avoid unnecessary denials.

2. Business Cards Can Be a Loophole: Many business cards from major issuers, including Chase, don’t count toward your 5/24 total. Take advantage of this if you’re trying to maximize rewards without adding to your personal card count.

3. Apply Strategically: The 5/24 rule limits how many cards you can be approved for, so prioritize applying for Chase cards early in your rewards journey. Take your time between applications to avoid account scrutiny from Chase.

Conclusion:

The Chase 5/24 rule is a major factor for anyone looking to optimize their credit card rewards strategy, especially when applying for Chase cards. While the rule might seem restrictive, understanding its intricacies allows for better planning and smarter decision-making. Whether you’re starting your credit journey or a seasoned points expert, knowing how to navigate this rule can make a big difference in your ability to secure the right cards. Remember, being strategic with your applications is key to staying within Chase’s limitations while still reaping the benefits of reward cards.

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Source: The Points Guy